How to send money to your adult children living abroad1 min read 30 May 2023, 11:23 PM IST
Indian residents can remit up to $250,000 per fiscal year under the Liberalised Remittance Scheme (LRS), with no limit on the frequency of remittances. Remitters must comply with regulations, including paying a 20% tax collection at source (TCS) on the LRS. Gifts to NRI close relatives of Indian residents can be transferred in a lump sum from a savings account to an overseas account, but must also fall within the LRS limit. Funds cannot be remitted from a private trust as LRS is not available to trusts.
I have a son (17) and daughter (21). Mu daughter plans to go abroad for two years. I have two queries: i) How much money can I send her in a year, and can it be every month or does it have to be once a year? ii) I have created a private trust for the benefit of my children. Can I send the money through a private trust?