Outward Remittance as a Gift

Outward Remittance as a Gift

Outward remittance as a gift involves transferring funds internationally to give a personal gift. This process has various steps that require adherence to regulatory guidelines and thorough documentation. Understanding the procedures, limits, tax implications and with the assistance from Unimoni, can make this process easier.

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Key Points on Outward Remittance as Gifts

It's essential to clearly define the purpose of the remittance as a gift in all necessary documentation. This transparency ensures regulatory compliance and facilitates a smooth transaction process. Clearly stating that the remittance is for a gift helps authorities understand the nature of the transaction, which is essential for complying with local laws and regulations in both the sending and receiving countries. It's important to be well-informed about the rules and limits the sending and receiving countries set. These regulations often include specific limits on the amount that can be sent as a gift, tax implications, and documentation requirements.

Who can avail benefits under this scheme?

A gift transfer can be made under the LRS by a resident person only. A HUF, partnership firm, company, trust, any association of persons, body of individuals, or artificial juridical person cannot avail of remittance benefits under this scheme. A "Gift", being of a personal nature, should be made in favour of an individual and not to a corporate or to himself/herself.

Documentation

Gathering necessary documentation is paramount to ensure a smooth remittance process.Sender’s documents include:

  • ID proof
  • PAN card

Beneficiary’s documents include:

  • Beneficiary’s name, address, and bank account details.
  • Depending on some countries, beneficiary’s IBAN, Routing Number, Tax ID number may be required.

Tax Implications and TCS Details

Under India's Liberalized Remittance Scheme (LRS), individuals can remit up to USD 250,000 per financial year for permissible transactions, including gifts. This limit ensures that remittances remain within regulatory thresholds, allowing individuals to send gifts internationally without exceeding allowable limits.

A TCS of 20% applies to remittances over INR 7 lakh in a financial year, ensuring that taxes are collected on higher-value transactions to comply with local tax laws. If the total remittance amount in a financial year is less than INR 7 lakh, no TCS is applicable, providing relief for smaller remittances that fall below the tax threshold.

Procedure for Outward Remittance as a Gift

Step 1: Consult Unimoni for Assistance

Visit your nearest Unimoni branch for expert guidance. Unimoni helps you send money abroad as a gift.

Step 2: Prepare the Required Documentation

Gather essential documents such as ID proof, PAN Card, Form A2 and the recipient’s overseas details. Unimoni will guide you on documentation.

Step 3: Processing and Compliance

Once Unimoni assists in forwarding your application, it will be processed in compliance with FEMA regulations and AML norms.

How Unimoni Can Help with Outward Remittance as a Gift

Unimoni assists in every step of outward remittance as a gift. With an extensive network of branches and strategic partnerships across multiple countries, you can choose Unimoni for reliable assistance. The company prioritizes security and compliance in all the processes, safeguarding customer interests and financial information. Unimoni adheres to regulatory standards, including AML and KYC requirements. Dedicated customer support services ensure prompt resolution of queries and assistance throughout , enhancing customer satisfaction and confidence in Unimoni's services.

Benefits of Using Unimoni

Unimoni serves as a trusted facilitator for sending gifts abroad, acting as a vital link for customers. With a wide network of customer-friendly branches across India, we assist individuals in initiating and processing outward remittances as gifts, in compliance with regulatory requirements. We guide and support customers through every step of the remittance process, ensuring accurate documentation and smooth coordination with our banking partners. Our role is to make the process easier, more transparent, and accessible for those looking to send money abroad as gift. Contact us to learn how we can help with your remittance needs.

Frequently Asked Questions

Under the LRS, individuals can remit up to USD 250,000 per financial year for permissible transactions, including gifts.

Required documents of the sender include PAN card, ID proof and the beneficiary’s documents typically include basic details, including their name, address, and bank account details. According to the beneficiary's country of residence, IBAN, Routing Number, TAX ID number may be asked.

Yes, depending on the amount and regulations of the sending and receiving countries, there may be tax implications. Significant gifts can be subject to gift taxes, and it's advisable to consult our experts for specific advice.

Usually happens within 2-4 business days.

Unimoni's customer support is available to assist with any issues.You can contact us anytime to know about any of your queries.