Transfering money from NRE account in India to family member
I am a US citizen and I want to transfer some amount 10 lakhs+ to my brother from my NRE account in India to his account. My brother is going to purchase something for his business. He is going to return my amount after 3-4 Months From the description it looks like you would like to loan to your brother on repatriation basis. Yes this is allowed. See the RBI Guide here and here for more details. There are some conditions; (iv) Scheme for raising loans from NRIs on repatriation basis   Borrowings not exceeding US$ 2,50,000 or its equivalent in foreign exchange by an individual resident in India from his close relatives resident outside India, subject to the conditions that - a) the loan is free of interest;   b) the minimum maturity period of   the loan is seven years;   c) The amount of loan is received by inward   remittance in free foreign exchange through normal banking channels or   by debit to the NRE/FCNR account of the non-resident lender;    d) The   loan is utilised for the borrower's personal purposes or for carrying   on his normal business activity but not for carrying on   agricultural/plantation activities, purchase of immovable property or   shares/debentures/bonds issued by companies in India or for   re-lending. Although it is mentioned as Seven years, this is revised to one year. Since he cannot deposit into my NRE account I guess he has to deposit it into my NRO account. A repatriate-able loan as above can be deposited into NRE Account. Is there any illegality here doing such transaction? No. Please ensure proper paper work to show this as loan and document the money trail. Also once I get my money in NRO account do I need to pay taxes in India on the money he deposited? This question does not arise.
If the funds are in NRE account, then there is no issue. You just instruct your bank in India to transfer. If your tax status in India is Non-Resident Indian, you should not be holding a normal Savings bank account.  Under the liberalized remittance scheme you can transfer upto 2,50,000 USD per year. You would need to instruct your bank in India to initiate a international wire transfer. The FAQs are here In general, deposits into an NRE account must be the proceeds of remittances from outside India. If you send your friend a cheque, denominated in Indian Rupees, drawn on your NRE account (which is an account held in a bank in India), that cheque will most likely be refused by your friend's bank for deposit into your friend's NRE account. Your friend could deposit it into an NRO account, though, but that deposit would likely draw the attention of the income tax people. Whether the amount so received from my son is taxable as my income in India ? No there is no tax liability for you. The money you received from you son would be treated as Gift and would come under Gift-Tax rules. As per current Gift Tax rules, you can receive unlimited funds from close relative, like your son. Any income you generate on these funds, i.e. interest on savings account, FD, etc is taxable to you. Your son maybe liable for taxes in US as in US Gift tax is on donor [i.e. your son]. The yearly limit is $14000 per person after which it can be deducted from estate limit or taxes paid. Once you turn 18 you should open an account in your own name and transfer the assets there. Currently your mom is the one responsible as far as the IRS cares with respect to taxes as it is her name on the account. The taxes due will be based on your mom's tax rate. As a good child you can reimburse your mom for the taxes that she has to on your behalf. Also legally that money currently belongs to her. Any legal judgement against your mom can claim that money and it is not available for using as an asset by you on credit applications and such. A better solution would have been for your mom to open a custodial account in your name. This way the money is still yours (you just don't have control of it until you turn 18). While probably not an issue here, the transferring of money between you and your mom (and then back) is considered a gift by the IRS. If the account was very well funded then you could run into having to deal with the annual gift limit and lifetime gift exclusion. Based on the clarification that the question is in reference to India: while I don't know the particulars of the law in India my advice of transferring the assets when you turn 18 still remains. The main difference that I would see been India and the US would be the gift tax / exclusions. Unless someone else knows otherwise I would still expect the law in India to see the current account as being the property of the mother. "Quite a few Bank in India allow Funds Transfer via ATM. One has to first register the beneficiary account and wait for 24 hrs before transacting. However it looks like ""Indian Bank"" currently does not offer this service. You can call up Indian Bank and ask if they provide this service.  Alternativly use the Internet Banking to transfer funds to CitiBank or any other Bank in India." We have a house here in India worth Rs. 2 Crores. We want to sell it and take money with us.  Selling the house in India will attract Capital Gains Tax. Essentially the price at which you sell the property less of the property was purchased [or deemed value when inherited by you]. The difference is Capital Gains. You have to pay tax on this gains. This is currently at 10% without Indexation and 20% with Indexation.  Please note if you hold these funds for more than an year, you would additionally be liable for Wealth tax at 1% above Rs 50 lacs. Can I gift this whole amount to my US Citizen Daughter or what is the   maximum limit of Gift amount   What will be the tax liability on me and on my Daughter in case of Gift   Whether I have to show it in my Income Tax Return or in my Daughter's Tax Return. What US Income Tax Laws says.   What will be the procedure to send money as Gift to my Daughter.   Assuming you are still Indian citizen when to gift the funds; From Indian tax point of you there is no tax to you. As you daughter is US citizen, there is no gift tax to her. There is no limit in India or US. So you can effectively gift the entire amount without any taxes. If you transfer this after you become a US Resident [for tax purposes], then there is a limit of USD 14,000/- per year per recipient. Effective you can gift your daughter and son-in-law 14,000/- ea and your husband can do the same. Net 14,000 * 4 USD per year. Beyond this you either pay tax or declare this and deduct it from life time estate quota. Again there is no tax for your daughter. What are the routes to take money from India to US   Will the money will go directly from my Bank Act.to my Daughter's Bank Account.   Will there will be wire transfer from bank to bank   Can I send money through other money sender Certified Companies also. The best way is via Bank to Bank transfer. A CA Certificate is required to certify that taxes have been paid on this funds being transferred. Under the liberalized remittance scheme in India, there is a limit of USD 1 Million per year for moving funds outside of India. So you can move around Rs 6-7 Crore a year. Can I wire transfer money from the my NRO account in India to my checking account in the USA?  Yes you can. However there is some paperwork you need to follow. As per FEMA [Foreign Exchange Management Act], any transfer by individuals outside of India need the 15CA & 15CB form. The 15CB is from a CA to state that taxes have been paid on the funds being transferred. The limit is 1 million USD per year. Read more at Liberalized Remittance Scheme and here. Any limit on the amount and do I have to report this to IRS or any other legal formality? Assuming you were already declaring the funds held in Banks outside of US in your regular IRS filings, there is no other formality. The simplest way is you transfer the funds into your NRE account in India. From the NRE account transfer the funds to your brother-in-law and show the purpose as Loan. From 2012 onwards RBI has simplified things under FMEA and your brother-in-law can deposit/repay the loan back into the NRE account. Once the funds are in NRE account you can repatriate then whenever you like. This entire process requires less paperwork. The option you have suggested is also fine, however your brother-in-law needs to engage the services of a CA and he will authenticate the purpose of remittance to the Bank. Based on this certificate the Bank will transfer the funds outside of India. "From your mother point of view, the money she receives from you cannot be defined as ""Income"" and hence there is not income tax. However this would be treated as ""Gift"" and as per Gift Tax rules, there is no limit on transfers of money between ""Relative"". Your Mother falls under this definition and hence you can give unlimited money to your parents without any tax implication. It is advisable to keep proper records if the amounts run upto lacs of rupees." How to send the full loan amount from Saudi Arabia (money exchange), because I have a money transfer limit? There is no limit for sending money into India. Just use the right banking channel and transfer the funds. If I sent to India, what about tax and all that in India? In a financial year if you are outside of India for more than 182 days, you are Non-Resident for tax purposes. Any money you earn outside of India is tax free in India. i.e. there is no tax for this funds in India.   If it is possible to send the money, to whom do I have to send it (my account, or my parents account) Whatever is convenient, preferably to your own NRE/NRO account. Any documents I have to show for tax issues (in case tax) You have to establish that you are NRI and hence this funds are not taxable. Hence its best you transfer into NRE/NRO account. If you transfer to your parents account, you would need a gift deed to make this non-taxable to your parents. I have savings account my self in Axis Bank, for the past 3 years I am paying taxes, if I send to my Axis Bank account how can I withdraw the full amount (10 lakhs (1,000,000)) on single day   Withdrawal is possible by cash or cheque You can write a check, do a NEFT/RTGS transfer to your loan account, you can withdraw cash by giving some notice time to the Branch Manager of your Branch. Best consult a CA as you may anyway need his/her service. I am NRI, availed secured loan (Against house property) in India and now I want to get that money transferred to Finland. Loans by NRI taken in India cannot be transferred outside of India. Refer FOREIGN EXCHANGE MANAGEMENT (BORROWING AND LENDING IN RUPEES) REGULATIONS Loans in Rupees to non-residents 1[***].     7. Subject to the directions issued by the Reserve Bank from time to time in this regard, an authorised dealer in India may grant loan to a     non-resident Indian, (B) against the security of immovable property (other than   agricultural or plantation property or farm house), held by him in   accordance with the Foreign Exchange Management (Acquisition and   Transfer of Immovable Property in India) Regulations, 2000 :   ......   Provided that-   (d) the loan amount shall not be remitted outside India; Alternative: Sell the property in India, transfer the proceeds to NRO account. Repatriate the funds outside India as per Liberalized Remittance Scheme. Form 15CA/CB with CA certificate will be required. I am assuming you are an NRI from tax perspective. Any income NRI earns is non-taxable in India. It is irrelevant whether the funds were transferred to India or not and whether they were transferred to NRO or NRE account is not relevant. First of all, you need to tell Paypal people that you've changed your country of residence & your tax residency no longer is India. Then they'll tell you to create a new paypal account & get it verified. And then you can transfer the older paypal account money to that new paypal account & tell them to close the older paypal account. Then use remittance services to transfer to NRE. That's the legal process as far as I know, because Paypal would want to keep its records updated, or else it'd be against its Anti Money Laundering policy. Is there any restriction to transfer fund from NRO to NRO There are no restrictions on transferring funds from NRO to another NRO account. Is there any tax deduction for that? This would depend on the purpose of the transfer. There is no tax on account of transfer of money. There may be tax to the other NRO account holder. am I allowed to transfer into NRE account from paypal? Credits into NRE accounts are restricted. It has to be established that the funds being credited are income outside of India. In case of paypal, paypal uses local clearing to credit funds into Bank Accounts. So essentially one cannot credit NRE account by domestic clearing network like NEFT. It is best that you withdraw the funds into Bank Account outside India and use SWIFT or remittance service to credit your NRE account. I do not want to transfer to an NRO account since the money credited into it will become taxable. This is not the right assumption. Credits into NRO are not taxable by default; if you establish that the funds are from outside India, there is no tax on the income money transferred from abroad into the NRO account. However, the interest that will be paid by the bank on the balance of the NRO account is taxable income in India and is subject to TDS. In contrast, interest paid on the balance in an NRE account is not taxable in India and is not subject to TDS as long as you maintain NRI status. However it does make sense to keep accounts segregated, i.e. income generated in India, credit the NRO account and income generated outside India credit to NRE.