Want to Send a Gift Remittance to Canada? Here are a few Tips
When you can't be present in person with someone, giving money is the finest way to express your concern. When you send a gift remittance in Canada or elsewhere, whether it's a modest payment or a sizable sum, you make it easier for your loved ones to manage their expenses.
Money gifts help people improve their living conditions and have a significant impact on them. When you wanted to give someone money in the past, you had to visit them personally. But these days, it's simple to send gifts to loved ones without being constrained by any boundaries.
This article looks at how you can send gift remittances to Canada and practical tips to ensure a hassle-free experience.
What is gift remittance?
Money can be given as a gift in many different ways. You can give gifts to a loved one to help with expenses like rent and medical bills. The money you are donating can get considered a gift if it did not result from an action that generated income like work. A gift is not a gift if it may be linked to work. A financial contribution is a gift if it was given out of a need to assist or a desire to do good.
You can also get the answer to the question by asking the question to yourself. What is your motto behind giving money to someone? If you expect to get back the money then you cannot consider it as a gift.
Who can send gift remittances to Canada?
Any Indian resident can avail of the benefits of gift transfer under the prescribed norms of Liberalised Remittance Scheme (LRS). A partnership firm, company, trust, or group of people are not permitted to benefit from outward remittance under this program. Given that gift is of a personal nature, it should be given to an individual rather than to a business or oneself.
Know More about:LRS
Documents required to send gift remittance to Canada
Here are the following documents you need to send outward remittance to Canada.
- PAN Card copy
- An officially valid document that contains your address
- A2 form
- Other documents (based on the requirements of the service provider)
Limit on sending gift remittance to Canada
Based on the norms prescribed under the LRS program, residents can send a maximum of $250,000 overseas in a fiscal year under the category of Gift Remittances.
Tax on sending gift remittances to Canada
According to the latest remittance rules, any amount over INR 7 lakhs under the gift remittance category attracts a 5% TCS (tax collected at source).
Ways to send gift remittance to Canada
It is more crucial than ever to understand how to send money overseas and gift remittances to loved ones safely. It is especially when issues like fraud and identity theft are widespread. Here are some options you can think of.
- Gift cards: Giving gift cards is an old and proven method of sending cash. You can send someone a gift card for shopping if you know them well enough. Gift cards also come in handy if you do not know someone well and are unaware of their interests.
- Certificate of Deposits (CDs): CDs make wonderful gifts that keep becoming better over time. You can also use a CD to teach young people the value of saving money. A CD is thus no doubt a convenient option to send money from India to Canada.
Send gift remittance to Canada today with Orient Exchange
The days of being constrained by borders and currencies to Transfer money from India to Canada are long gone. Sending gift remittances is quick and easy with money transfer service providers like Orient Exchange.
We offer seamless transfers at some of the best exchange rates available in the market. Furthermore, our security measures make us one of the most trusted names in the business.
We have a simple documentation process that you can complete in minutes. Read the checklist of the documents on our website and keep them handy. You can then begin the process of sending gift remittances to your loved ones in Canada. Contact us right away to avail the gift remittance services.