NRI child’s property: How much can parents send?
Indian parents can legally fund the purchase of an overseas property by their NRI or OCI child, provided they adhere to the Foreign Exchange Management Act (FEMA) and the RBI's Liberalised Remittance Scheme (LRS). Each resident parent can remit up to USD 250,000 per financial year, which amounts to a total of USD 500,000 combined.
The money can be sent as a gift or a loan, depending on the arrangement's intent. If structured as a gift, it is exempt from Indian income tax for the child. However, if it is a loan, a comprehensive loan agreement must be drafted, and the transaction must comply with all FEMA provisions.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
