Posted on: 06-01-19 12:00:12
Hi,
A family member needs to send some funds to Canada (around Rs. 2.5 lacs). I noticed that Remitly doesn't offer such a service.
1. What is the least expensive way of sending money to Canada from India?
2. Would there be any Canadian tax consequences for me when I receive the funds?
Thanks
Outward remittances from India are restricted. Bank to bank wire transfer can be done can be done from India. Tax implications, not sure.
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Quote:
Originally posted by RaOne
Hi,
A family member needs to send some funds to Canada (around Rs. 2.5 lacs). I noticed that Remitly doesn't offer such a service.
1. What is the least expensive way of sending money to Canada from India?
2. Would there be any Canadian tax consequences for me when I receive the funds?
Thanks
If you have a NRO or NRE account in India, it is easier to remit the money over here. It can easily be done online.
Ask them to deposit the money in your NRO account (can't deposit it in your NRE account), then repatriate the money over here.
There are no tax implications if you show the money as gift or don't show it at all.
It's a relatively small amount of $ 5,000 and is below $ 10,000 so your bank also won't report it to FINTRAC or CRA. You can easily hide this money if you want.
The money will come by wire transfer - the Indian bank will easily make 2-3 % on the exchange rate.
Plus the Canadian bank depending on which one either has Free incoming wire transfer or a 15-20 bucks administrative charge for receiving a wire transfer.
The best is Havala racket. People go or come to India all the time.
They need money in India.
So if a friend or colleague is traveling to India and to your city, ask him to give you $ 5,000 cash here and you give him Rs. 2.5 Lacs cash in India for his expenses.
Win Win situation for both.
