# Transferring large sums of money from India to Australia for property purchase



## AjBee (Dec 6, 2016)

Hi All,

I was wondering if anyone on this forum has experience transferring money from India to Australia for the purpose of purchasing property in Australia. I have been in Australia for 1.5 years on a PR and am planning to buy property here to live in. I need to transfer close to the equivalent of about AUD 100K (~50,00,000 INR) to pay the deposit.

Queries:
1. What is the limit on Outward remittance from India and, Inward remittance to Australia (per transaction, per FY)? Are these limits per person or for a family?
2. How to work around those limits, legally?
3. Tax implications for transferring through a relatives account (parents) and own account as source of funds

TIA


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## ratnesh.nagori (Jul 11, 2013)

AjBee said:


> Hi All,
> 
> I was wondering if anyone on this forum has experience transferring money from India to Australia for the purpose of purchasing property in Australia. I have been in Australia for 1.5 years on a PR and am planning to buy property here to live in. I need to transfer close to the equivalent of about AUD 100K (~50,00,000 INR) to pay the deposit.
> 
> ...


1. Depends on your bank in India and Australia.

2. Your bank in India will ask for all the documents regarding transferring money. Usually, it's fine if money is transferred to people who are in blood relation. Father to son, brother to brother, father to daughter etc.

3. You can mark this transfer as "One time Gift" from your parents. Print a gift letter, ask person who is sending money to sign it and send you the scanned copy.


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## AjBee (Dec 6, 2016)

ratnesh.nagori said:


> 1. Depends on your bank in India and Australia.
> 
> 2. Your bank in India will ask for all the documents regarding transferring money. Usually, it's fine if money is transferred to people who are in blood relation. Father to son, brother to brother, father to daughter etc.
> 
> 3. You can mark this transfer as "One time Gift" from your parents. Print a gift letter, ask person who is sending money to sign it and send you the scanned copy.


Thanks.

Below may help anyone looking for info

Regs limits, it is USD 250,000 per financial year as per RBI: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=10192&Mode=0#1

Also, ICICI Bank for eg has below limits for transferring online
1. USD 25,000 and equivalent per day
2. USD 50,000 and equivalent per month and
3. USD 225,000 and equivalent per financial year

However, it seems a resident Indian can transfer USD 250,000 by visiting the bank physically

This link may help in understanding better: https://www.icicibank.com/Personal-Banking/faq/account-and-deposit/outward-remittance-faqs.page


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## ratnesh.nagori (Jul 11, 2013)

AjBee said:


> Regs limits, it is USD 250,000 per financial year as per RBI: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=10192&Mode=0#1
> 
> Which bank/forex trader will allow AUD 100K? ICICI for eg limits it to USD 25,000 per financial year


I have no idea.


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## NB (Mar 29, 2017)

AjBee said:


> Hi All,
> 
> I was wondering if anyone on this forum has experience transferring money from India to Australia for the purpose of purchasing property in Australia. I have been in Australia for 1.5 years on a PR and am planning to buy property here to live in. I need to transfer close to the equivalent of about AUD 100K (~50,00,000 INR) to pay the deposit.
> 
> ...


1. You can transfer 2,50,000 USD per year per person
You can do it in 1 shot or in several lots, as per your convenience 

2. You are well below the limit by a long shot

3. As long as it is legal money and you are transferring it through authorised banking channels, you or your parents will face no problem in india or Australia 
There is no tax implications in either country 

Cheers


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## KeeDa (Sep 1, 2014)

NB said:


> 3. As long as it is legal money and you are transferring it through authorised banking channels, you or your parents will face no problem in india or Australia
> There is no tax implications in either country


Not always. There could be tax implications, for instance: if the money is capital gains (from sale of property in India perhaps), then after having paid the capital gains tax in India, if they were a resident of Australia at the time of the sale, they *may be liable* to pay the differential tax in Australia too: *CGT for sale of overseas property*
It is not straightforward either because of the depreciation indexation rules in India, so OP should seek advise from a registered chartered accountant.


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## chiku2006 (Feb 22, 2014)

you can transfer funds from India on a pretext of anything. As a citizen of India you are allowed to remit USD 250,000 a year. Now, since you have sold a property, you must have paid a long-term or a short term capital gain tax in India or buyer of the property must have deducted a TDS from the payments. If you are a resident of Australia then you can claim that tax paid in India here in Australia, India and Australia have a double taxation treaty to avoid double tax payment by an individual.

If you have paid more tax in India than what you are liable for here in Australia then you won't get that refunded to you here as ATO never received that payment ( hope it makes sense).

Sent from my Pixel 3a using Tapatalk


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## NB (Mar 29, 2017)

KeeDa said:


> Not always. There could be tax implications, for instance: if the money is capital gains (from sale of property in India perhaps), then after having paid the capital gains tax in India, if they were a resident of Australia at the time of the sale, they *may be liable* to pay the differential tax in Australia too: *CGT for sale of overseas property*
> It is not straightforward either because of the depreciation indexation rules in India, so OP should seek advise from a registered chartered accountant.


His question was on the implications of transfer of money from self and parents account
As this is not a taxation related forum, one has to be presume that the legitimate taxes have been paid by the persons on their income

Cheers


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## smart_friend (Feb 22, 2018)

Does the USD 250,000 limit per year apply for Indian citizens living/working overseas and looking to transfer funds to Australia from outside india? Or will the fund transfer rules and limits of the overseas country apply instead?


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## NB (Mar 29, 2017)

smart_friend said:


> Does the USD 250,000 limit per year apply for Indian citizens living/working overseas and looking to transfer funds to Australia from outside india? Or will the fund transfer rules and limits of the overseas country apply instead?


This is the limit for transfer from india to another country
Say If you are living in Singapore, and are an NRI, then Indian government is not bothered how much money you send from singapore to any other country
The rules of Singapore will apply on you 

Cheers


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## manpreetsinghrinku5 (2 mo ago)

Hello guys I have a query I am a permanent resident of australia and wanted to sell my property in india .Just need your opinion is it worth selling off and have nothing in India ?

With the transfer of money let's say if it's above 1cr and if I pay my taxes in India do I have to pay anything in Aus when I transfer to my Bank account?


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## NB (Mar 29, 2017)

manpreetsinghrinku5 said:


> Hello guys I have a query I am a permanent resident of australia and wanted to sell my property in india .Just need your opinion is it worth selling off and have nothing in India ?
> 
> With the transfer of money let's say if it's above 1cr and if I pay my taxes in India do I have to pay anything in Aus when I transfer to my Bank account?


You will have to declare the income in your Australian tax return also and pay taxes as per Australian laws
You can claim credit for the taxes paid in india
Cheers


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## Moulard (Feb 3, 2017)

NB said:


> You will have to declare the income in your Australian tax return also and pay taxes as per Australian laws
> You can claim credit for the taxes paid in india
> Cheers


This is correct.. but do note that a relativity recent tax case determined that you can only to claim a credit for 50% of the taxes paid in India on the gain because of in Australia only 50% of the gain is taxed.



manpreetsinghrinku5 said:


> With the transfer of money let's say if it's above 1cr and if I pay my taxes in India do I have to pay anything in Aus when I transfer to my Bank account?


Transfer of money does not generate any income so there is no income tax.
Deposit and Debit taxes on bank account transactions were abolished with the introduction of GST. 

It is always worth forewarning the bank of large deposits due to AUSTRAC reporting requirements.


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