Transfer in NRE Account

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This discussion clarifies the limits for gifting funds to an NRI brother's NRE account in the USA. Under the Liberalised Remittance Scheme, individuals can remit up to USD 2,50,000 per financial year. For gifts intended for medical treatment, such as your mother's, Tax Collected at Source (TCS) will not apply, even if the amount is INR 8 lakh. It's important to note that from October 1st, 2023, a 20% TCS applies to foreign remittances over INR 7 lakh, excluding education and medical purposes.

Sanjay Budhiraja

Sanjay Budhiraja (Querist)
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11 October 2023 Hello Sir
Pl let me know the maximum limit of gift to my NRI brother in his NRE Account in USA..
REGARDS
Sanjay

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 October 2023 Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year

Sanjay Budhiraja

Sanjay Budhiraja (Querist)
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12 October 2023 Sir. Any tcs or tds implications.. I want to gift 8 lac to my brother for mother treatment.. pl advise.
Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 October 2023 Transfer it as mother's medical treatment TCS will not be applicable.

Starting Oct 1st 2023, there will be 20% TCS on foreign remittances (other than for education and medical purposes) over a threshold of INR 7 lakhs. Foreign remittances of less than Rs 7 lakh in a financial year are not subject to any Tax Collected at Source (TCS).

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