You can gift money to a relative living abroad under LRS, within your yearly limit.
Who is a relative
Relatives as defined under the Companies Act — spouse, parents, children and their spouses, siblings and their spouses, among others. Proof of relationship is required.
Documents
- PAN and address proof of the giver.
- Relationship proof.
- The receiver's bank details.
- A short gift declaration.
Limits and tax
- Counts towards USD 2,50,000 a financial year.
- TCS above ₹10 lakh of LRS in the year.
- The receiving country may have its own reporting rules — in the USA, for example, a resident receiving more than USD 1,00,000 in gifts from a foreign person in a year must report it.
What we check
Sender and receiver must be different people, and the money must come from the sender's own account.
