Imagine this: your daughter is in London, and her birthday is coming up. You want to send her a little financial surprise. Or maybe your brother just moved to Canada, and you’d like to support him as he settles in. Naturally, the first question that pops up is, what are the Gift Remittance Limits Under LRS in 2025?
The rules sound technical, but don’t worry. Let’s break them down in plain language so you know exactly how much you can send, what taxes apply, and how to make sure everything goes smoothly.
The Basics: What Counts as a Gift Under LRS
The Liberalized Remittance Scheme (LRS) of the Reserve Bank of India allows every resident individual to send money abroad for approved reasons like education, medical treatment, investments, or gifts.
When we talk about gifts, it simply means sending money without expecting anything in return, whether it’s to family, friends, or even as a personal donation.
Here’s the part that matters: Gift Remittance Limits Under LRS are not separate from other remittance purposes. They are part of the overall annual allowance of USD 250000 per person per financial year.
So whether you send one big gift or several smaller ones, everything together must stay within that USD 250000 umbrella.
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Gift Remittance Limits Under LRS in 2025
- Annual Cap: USD 250000 per resident individual, per financial year (April to March).
- No cap per transaction: You can send multiple gifts in the year, but the combined total must stay within the annual ceiling.
- Prohibited transfers: You can’t send foreign currency to another resident in India for credit to their foreign account.
- Paperwork: PAN, KYC, Form A2, and the right purpose code (S1302 for gifts) are your must-haves.
Think of it this way: if LRS is your wallet for overseas transfers, Gift Remittance Limits Under LRS are just one way of spending from that same wallet.
The 2025 TCS Update: What Changed
Here’s where many people get confused. From 1 April 2025, the way Tax Collected at Source (TCS) applies under LRS changed:
- No TCS on the first ₹10 lakh you send in a year.
- Beyond ₹10 lakh, the TCS rate depends on the purpose:
| Purpose | Limit under LRS | TCS beyond ₹10 lakh |
| Gifts | Part of USD 250000 | 20% |
| Education via loan | Part of USD 250000 | Nil |
| Education self-funded | Part of USD 250000 | 5% |
| Medical treatment | Part of USD 250000 | 5% |
What does this mean for you?
If you remit a gift of USD 15,000 (around ₹13.18 lakh) in a financial year, the first ₹10 lakh is usually exempt, and no TCS is charged. The 20 percent TCS applies only on the extra ₹3.18 lakh. But if you have already sent ₹10 lakh earlier in that year, then the entire gift amount is taxed at 20 percent, and the bank will collect it upfront.
Important to remember: TCS isn’t an extra cost. It’s a prepaid tax you can claim back when filing your return. Still, it impacts your cash flow, so timing your remittances wisely matters.
A Quick Visual Guide to Smarter Gift Remittance Planning
Gifts and Income Tax Rules
- If the recipient is in India: Any gift above ₹50000 a year may be taxable in their hands unless it’s from a close relative or falls under exemptions like marriage.
- If the recipient is abroad: Indian tax usually doesn’t apply, but local gift tax rules in their country may.
So, while Gift Remittance Limits Under LRS guide how much you can send, income tax rules decide whether the recipient has to pay tax on what they receive.
Also read: How to Avoid TCS on Foreign Remittances
How to Stay on the Safe Side
Before sending money abroad as a gift, quickly check:
- Am I within the Gift Remittance Limits Under LRS of USD 250000?
- Have I tracked my total LRS usage this year?
- Have I filled in Form A2 with purpose code S1302?
- Will this remittance push me over the ₹10 lakh threshold for TCS?
- Have I considered the recipient’s tax obligations in their country?
If all the boxes are ticked, your remittance should go through without hiccups.
Why HOP Remit by moneyHOP is Your Best Option
Sending a gift money isn’t just about compliance; it’s about peace of mind. You want your money to reach fast, safely, and without hidden costs. That’s exactly what HOP Remit by moneyHOP delivers.
- Get the lowest exchange rates with near-zero markups.
- See upfront if TCS applies before confirming.
- Guided flows so you always choose the right purpose code.
- Track your transfers in real time, along with your annual LRS usage.
Thousands of Indian families trust HOP Remit every year to send both education payments and personal gifts. If you want a secure, transparent, and stress-free way to stay within your Gift Remittance Limits Under LRS, HOP Remit is built for you.
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Final Word
So, how much can you send abroad as a gift in 2025? The answer is clear: up to USD 250000 per individual per year under the Gift Remittance Limits Under LRS. The only twist is the new TCS threshold: no tax until ₹10 lakh, and different rates after that.
With the right planning and the right platform, sending gifts abroad doesn’t have to feel complicated. It can be simple, transparent, and even cost-saving. And with HOP Remit by moneyHOP, you can make your next gift transfer the smartest one yet.
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