Money transfer for Non-Resident Indians (NRIs) from overseas to India is more than often a tedious and stressful task. Many individuals lack awareness vis-a-vis the fees charged by the bank or the intermediary institution as well as on the currency exchange margin on such transactions.
On top of it, many of these remittance transfers are not pocket-friendly too. However, no worries anymore as experts suggest several options to optimise savings while remitting money from abroad.
While NRIs don’t have to pay taxes when they transfer money to India for gifts, maintenance, etc, Mayank Goyal, Founder & CEO of moneyHOP in an exclusive interaction with CNBC-TV18.com said that it is recommended to open a Non-resident External (NRE) savings account for fund transfer when it’s done for investments.
Now, if you don’t want to transfer funds for investment and just want to send money for medical expenses or gifts, Goyal said that it is better to send money to the recipient’s resident savings account.
“This money will not be taxable,” he stated.
“If the country to which you’re sending money permits transfers through an e-wallet, that’s probably the cheapest way to send and receive money. It is essential to find a licensed regulated entity that works between the geographies,” Mathur said.
Mathur further said that it is also preferable to refrain from transferring several small amounts to single or multiple recipients.
“It is better to transfer a high-value amount of $1,000 or more to your NRE or Non-Resident Ordinary (NRO) savings account to avoid money transfer costs and then initiate multiple domestic transfers to your beneficiaries,” he informed CNBC-TV18.
An NRO savings account is where you can maintain and manage your income earned in India such as rent, dividends, pension, etc.
The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
(Edited by : Ajay Vaishnav)