Sending abroad money to NRI daughter-in-law.

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This discussion clarifies the process of sending approximately Rs 7 Lakhs abroad to an NRI daughter-in-law under the Liberalised Remittance Scheme. It confirms that a daughter-in-law is considered a 'close relative' for this purpose. The funds can be classified as 'maintenance' or a 'gift', with no different rules or limits for either. Importantly, such transfers are generally tax-exempt under the 'gift from relative' definition and can be sent directly from a resident savings account via wire transfer without needing to go through the NRI's NRO account.

rmalhotra

rmalhotra (Querist)
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27 November 2023 Sir,
A resident individual intends to send under Liberalized Scheme an amount of
Rs Seven Lacs approx to his daughter-in-law (Son's wife ) who is NRI and is employed abroad. Hence following queries :-
1. Is ' Daughter-in-law ' as a recipient , covered under the definition of ' Close Relatives ' for purpose of sending money abroad to her .
2. Can it be classified as- for purpose of ' Maintenance ' OR it has to categorized as a ' Gift ' while filling form at remitter bank's counter. ?
3 Is there different rule / limit applicable when sent for ' Maintenance purpose ' or for 'Gift purpose ' ?
4. Is it exempted under both situations of ( maintenance or gift ) and is covered under definition of ' Gift from Relative ' and will not attract any ITax .?
5. Can it be sent directly from resident saving a/c to NRI 's foreign bank abroad thru wire transfer . ?
6. Is there compulsory rule to transfer this amount to NRO a/c of daughter-in-law if it is an ' exempted gift ' .?

Pls guide on above pointwise .