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How much money can I send to India from Canada?

Find out about tax on sending money from Canada to India, maximum transfer limits and more.



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Sending money to India from Canada (or the other way around)? We break down what you need to know including the maximum limit for money transfers from Canada to India, limits on remittances from India and key tax rules.

Maximum limit for a money transfer from Canada to India

There is no maximum limit for money transfers from Canada to India. You can send as much as you want. But beware that if you’re sending more than ₹50,000 to someone in India who isn’t a blood relative (including spouses, children, grandchildren, siblings and in-laws), they’ll have to pay tax to the Indian government.

Tax on sending money from Canada to India

There is no tax for recipients on money transferred from Canada to India when it’s being sent to blood relatives. In general, “blood relatives” — including spouses, children and grandchildren, siblings or in-laws — do not pay tax on any amount that you send.

However, if you’re sending more than ₹50,000 to someone in India who isn’t a blood relative, they’ll need to report it on their taxes. No matter how you send the money, your recipient could be on the hook for a gift tax if they aren’t a blood relative, as regulated by the Indian Income Tax Act. If the money is sent as inheritance or as a wedding gift, however, there won’t be any taxes levied on it by the Indian Income Tax Department.

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Maximum limit for a money transfer from India to Canada

Individual residents in India can transfer a maximum of USD$250,000 overseas each year (from April 1 to March 31 the following year), which includes transfers to Canada. You need a Permanent Account Number (PAN) to send funds. There is no limit to the number of remittances you can make from India, but the total amount can’t exceed USD$250,000 annually.

Tax on sending money from India to Canada

Prior to October 1, 2023, residents of India had to pay a 5% tax on remittances above ₹700,000 (around CAD$11,500). However, as of October 1, 2023, any money sent from India – except funds sent for medical or educational purposes – is subject to a 20% tax, including transfers to to Canada.

Medical and education remittances will continue to be taxed at a rate of 5%. Additionally, any transfers from India for education expenses paid from an education loan will continue to be taxed at a rate of 0.5%.

One other notable exception to the 20% tax rule is any payment by an individual India resident using their international Debit or Credit cards for amounts up to INR₹700,000 in a financial year.

Remittances from India can only be sent for certain reasons like gifts, donations, supporting close family members, business travel and studying abroad. You can’t send money from India for some purposes like buying lottery tickets or buying Foreign Currency Convertible Bonds (FCCBs) traded by Indian companies in overseas secondary markets.

CAD to Indian Rupee: Historical exchange rates

Compare providers for your next large transfer to India

Our table below lets you compare services you can use to send money abroad. Compare fees, exchange rates and discounts from different money transfer services, and when you have made your choice, click Go to site.
Name Product _compare_ Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer)
Finder Award
24 hours
Exclusive offer: Discounted exchange rates for your first and ongoing transactions. $0 transfer fee.
OFX has no maximum limit transfers, with competitive exchange rates for 50+ currencies.
Finder Award
Within minutes
From $0
Special offers like free transfers and better exchange rates available for new customers.
Remitly has quick, affordable transfers around the world, with both express and economy options.
Xe Money Transfers
Within minutes
Xe has fast transfers with low fees and a range of foreign currency tools.
Wise (TransferWise)
24 hours
From 0.43%
Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies.
Finder Award
Within minutes
From $4.99
For a limited time, get $0 fees on your first money transfer from Canada. Conditions apply.
MoneyGram has fast cash pick-up transfers to more than 350,000 agent locations worldwide.
Within minutes
From $0
Use code HELLO to get $20 off on first two transfers on a min transfer of $250. Valid until November 30, 2023.
Instarem offers zero transfer fees on all transfers.
Within minutes
From $0
Use promo code 3FREE and pay no fees on your first 3 transfers. Conditions apply.
WorldRemit sends money to 110+ countries for bank-to-bank deposits, cash pick-ups or mobile top-ups.

Do I have to report and pay taxes to transfer money from abroad to India?

Unless your transfer has any sales tax applied to it, you don’t usually have to worry about reporting and paying taxes to the CRA for transferring money abroad. Additionally, India has signed agreements with many other countries — including Canada — to prevent “double taxation,” or being taxed on money you’ve already paid income tax on.

What are the penalties in India if my recipient fails to file?

If you don’t report a transfer on your taxes in India or report less than you should, you could be charged a penalty ranging from 10% to 200% of the taxes owed. The rate is determined by the circumstances of the case such as whether the offense was intentional.

With so much attention on money entering and leaving India, if you fail to report large sums, don’t know you have to report them or don’t report them correctly, it will likely be discovered. Make sure to declare any large remittance as income on your general tax return with the Indian Income Tax Department.

To avoid the severe penalties that could come with a failure to report large sums of money into the country, speak with a professional to guarantee that everything complies with the laws of both Canada and India.

How will my recipient in India get the money?

Your recipient can pick up the cash in person or have the money deposited directly into their bank account or mobile wallet. Not every provider will offer all 3 options, so check before initiating a transfer.

In general, your recipient will provide an ID or a confirmation number for the transaction to pick up the money in cash.

Bottom line

If you’re sending money to a blood relative in India, they won’t have to worry about taxes — but if you’re sending money to a friend, they’ll need to report anything over ₹50,000 as income.

As with all international money transfers, be wary of potential fraud and only send money to people you know. Using a reputable provider can safeguard you from potential scams.

Frequently asked questions about money transfers between Canada and India

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