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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.

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.

How much money can I send from Canada to India?

There is no money transfer limit on how much you can transfer to India from Canada, at least none imposed by the Indian or Canadian governments. However, the specific money transfer or banking service that you are using might impose limits on how much they can accommodate in a single transfer. If you’re planning on initiating a large transfer, consider using a high-limit service like Xe.

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.

Tax on sending money from Canada to India

There is no recipient tax on money being transferred from abroad 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.

Tax for India residents sending money abroad

How much money can you send from India to Canada? Individual residents of India can only remit up to USD$250,000 overseas each year, and 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 you can’t exceed USD$250,000 annually.

Prior to July 1, 2023, any amount remitted above ₹700,000 (around CAD$11,500) is subject to 5% tax. This only applies to amounts above ₹700,000. So, if you send ₹800,500, you only pay tax on ₹100,500. As of July 1, 2023, all remittances — excluding funds sent for medical or travel purposes — will be subject to 20% tax. Medical and travel remittances will continue to be taxed at a rate of 0.5%.

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.

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.
1 - 7 of 7
Name Product Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer)
OFX
Finder Award
OFX
24 hours
$0
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.
Remitly
Finder Award
Remitly
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.
Wise (TransferWise) - Under 10k
24 hours
From 0.41%
Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies.
Simplii Financial
Within minutes
$0
Up to $300 off your first Global Money Transfer with our code GMTEVENT depending on the amount you send. For cash pickups instead, earn $50 using code CASH. Limits and regulations apply.
Send money without fees and at competitive exchange rates to 130+ countries.
OFX
Finder Award
OFX
24 hours
$0
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.
Instarem
Within minutes
From $0
Use code FINDER to get CAD 20 off on first two transfers on a min transfer of CAD 250
Instarem offers zero transfer fees on all transfers.
WorldRemit
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.
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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.

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