Max. limit of Money-Remittance for an NRI

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  1. rl334709

    rl334709 New Member

    Sir, If an individual is an NRI, for last 5 years, then :

    Que. 1 : How much amount can he send (remit) to India, in a single financial year? How much is the maximum limit for it ?

    Que. 2 :Is there any particular way, in which only, he has to send money to India ?

    Que. 3 : Can he pay CASH or compulsorily cheque or debiting his bank account in the bank abroad in his current country ? (Which mode of payment to be chosen to pay to the foreign bank for remitting money to India?)

    Que 4 : What care should be taken so that any rule/regulation /provision of income tax and other laws, may not be broken ? And so that he may not have any problem due to his such transactions in future ?


    Please, guide.
     
    1. There is no maximum limit. Remember though that IT department in India can check the credit worthiness of the donor so you should be able to explain the transferred money vis a vis your income level.
    2. As per FEMA, it has to be routed only through banking channels. Use of other modes like hawala is a violation of Section 3 of FEMA and is a non-compoundable offence. You can use bank services or authorised money changes like Western Union etc.
    3. In case your case gets selected in scrutiny, your foreign bank account can also be asked for and it may be difficult for you to explain source of funds for the cash entry. Advisable to route it through the banking system only.
    4. Preserve salary statements, pay slips, tax deduction statements for income received in foreign country. Execute a gift deed on plain paper (no registration and stamping required) in duplicate, and keep in respective tax files for record and reference.
     
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