Minimum and Maximum Limit for transferring money from the UK to India.  

Woman transferring money from the UK to India with a laptop

It’s likely that you’ve transferred money abroad at least once in your life if you’re like the majority of individuals who have moved abroad becoming an NRI or for work purposes. However, Money transfers from the UK to India have now become a regular and crucial activity in 2022. Whether you’re sending money to family or friends, making purchases or paying for services, or investing in a business.  

Yet did you realize that each transfer has a minimum and a maximum value? The methods of transfer, exchange rates, and the particular rules established by the financial institutions and governments of both countries can all affect these restrictions, which can then alter the way you send your money and the amount you transfer. 

Can I transfer money from Uk to India into the savings account:  

Selecting a trustworthy banking institution or money transfer provider that can handle the transfer is the first step. It’s crucial to consider carefully your alternatives because various suppliers could provide various conversion rates, costs, and processing timeframes. In this case, Xmonies will be an efficient option for your all-needy transfers to India.   

The relevant data for the transfer, including the recipient’s name, account number, and bank information, must be provided once you’ve decided on it (if it is done through a service provider such as Xmonies). Further paperwork, such as identification or transfer-related justification proof, could also be needed by some providers (if it is done through Bank).  

As soon as the transfer is finished and the funds are put into the recipient’s savings account in India, they become subject to the terms and conditions of that account, including the interest rates and other terms and restrictions.   

(Finding a savings account in India that suits your requirements and tastes should be the result of a thorough study.)  

Overall, it is feasible and cheapest way to send money from the UK to India and deposit it into a savings account, but it’s crucial to pick a dependable service, offer proper information, and be aware of any restrictions or laws that may be in place. 

Is there a limit on international bank transfers in the UK?  

The amount or the maximum limit for money you can transfer from the UK to India, or any other nation is not specifically restricted by the UK government. You should be mindful of the anti-money laundering laws that govern foreign money transactions, though. These laws require financial firms to confirm the identification of their clients and alert the authorities to any questionable activity in order to stop money laundering and the funding of terrorism.  

Your bank institution may want you to submit extra documents, such as evidence of the source of funds or the reason for the transfer if you are transferring a sizable quantity of money through the bank and not the service provider. This is done to make sure that there are no illicit activities involved in the transfer and that it is authentic.  

Still and all, if you use a website transfer service like Xmonies you might not face such inconvenience which is usually seen under traditional remittance transfers (Banks Transfer). But there could be a limitation on the transfer you send in the case of website services. With Xmonies the amount transferred is GBP 100000. The benefit here as a consumer you will procure is they won’t charge any additional costs, fees, or hidden charges.

Is there any maximum limit on transferring money from UK to India?  

It is conceivable to send money as a gift from the UK to India, but it’s crucial to comprehend the tax repercussions and applicable laws.  

You are not subject to inheritance tax in the UK when you give gifts worth up to £3,000 annually. You could have to pay inheritance tax on any further gifts if you intend to give away more than this. However, regardless of the amount, gifts to a spouse or partner who has a permanent residence in the UK are often excluded from inheritance tax.  

In India, gifts are occasionally subject to income tax. For instance, if the present comes from a non-relative and its value exceeds Rs. 50,000, income tax will apply. Gifts between spouses, parents, children, and siblings are among the family members that are excluded from income tax.  

When sending money as a gift from the UK to India, it’s crucial to prepare ahead and, if required, get expert guidance in order to prevent or reduce tax liabilities.

The following advice might be helpful:

  1. Maintain the gift’s value within the allotted tax-free amounts: Keep the gift’s value within the yearly exemption limit of £3,000 to avoid inheritance tax in the UK. Keep the gift’s worth under Rs. 50,000 to avoid paying income tax in India or send it to a member of your immediate family who is exempt.  
  1. Record the gift: See the gift’s quantity, date, and receiver in your records. This can assist you in demonstrating both the value and the fact that the present was delivered, if necessary.  
  1. Speak with a tax expert: If you’re unclear about the tax repercussions of sending a gift from the UK to India, think to consider speaking with a tax expert who can offer advice tailored to your case.  

Do I have to pay tax on money transferred from the UK to India?  

  • Income tax: If the remittance is received as part of your income in India, income tax may apply. Indians who are both resident and non-resident are affected by this.  
  • Tax on gifts: As was already noted, there are several circumstances in India when gifts are subject to income tax. You can be required to pay income tax if the value of a present you get from a non-relative exceeds Rs. 50,000.  
  • Capital gains tax: The remittance may be liable to capital gains tax in India if it is the result of the sale of assets like investments or real estate.  
  • Remittances from overseas: If you are a non-resident Indian (NRI) and receive remittance from abroad, you can be required to pay taxes on certain forms of Indian income, such as rent or interest income.  
It’s essential that you look for the most recent information from official sources because tax rules and regulations are subject to change over time. 

Share this post

Sahil G

Sahil G