Every milestone birthdays, weddings, graduations, or family achievements calls for celebration. For thousands of Indians with loved ones in Australia, a monetary gift is often the most thoughtful way to express care across borders.
With over 1.1 million Indian-origin residents in Australia as of 2025, cross-border gifting has become more than a gesture; it’s a financial necessity. Fortunately, advancements in India’s fintech ecosystem, streamlined RBI regulations, and digital remittance platforms have made it simpler than ever to send gift money to Australia from India securely, quickly, and without unnecessary cost.
The Legal Framework: Understanding RBI’s Liberalised Remittance Scheme (LRS)
Before initiating any overseas transfer, it is crucial to understand the Reserve Bank of India’s (RBI) Liberalized Remittance Scheme (LRS).
Under the LRS, an Indian resident can remit up to USD 250,000 per financial year for permitted purposes, including gifting, education, travel, or maintenance of relatives abroad. Gifts fall under “current account transactions,” making them a fully authorized purpose provided the sender completes KYC and documentation.
Essential Conditions under LRS
- Transfers must be made through an authorized dealer.
- The sender must have a valid PAN and proof of identity.
- The declared purpose must be “Gift” or “Maintenance of close relative.”
- All transactions are subject to TCS (Tax Collected at Source) if thresholds are crossed.
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This comprehensive guide shows you how to send gift money to Australia from India securely, affordably, and without unnecessary delays or surprises.
TCS Rules for 2025: Know the Thresholds Before You Send
Tax Collected at Source (TCS) was revised under the Finance Act, 2023 and reaffirmed in FY 2025-26. Here’s how it applies to gift remittances:
| Purpose of remittance | Threshold (in a financial year) | TCS rate above the threshold |
| Education via loan from a specified financial institution | No TCS irrespective of amount | 0% |
| Education (self-funded) or medical treatment (not via loan) | Up to ₹10 lakh – no TCS; above ₹10 lakh – TCS applies | 5% on amounts above ₹10 lakh |
| Gifts, investments, abroad travel & “other purposes” | Up to ₹10 lakh – no TCS; above ₹10 lakh – TCS applies | 20% on amounts above ₹10 lakh |
| Overseas tour programme package purchases | Up to ₹10 lakh – 5%; above ₹10 lakh – 20% |
Also read: How to Avoid TCS on Foreign Remittances
Documentation Required to Send Gift Money Abroad
Before you initiate a transfer, prepare the following documents to avoid compliance delays:
- PAN and valid government ID (Aadhaar or Passport)
- Gift Declaration Letter (mentioning amount, occasion, and recipient details)
- Recipient bank details – Name, Bank Name, Account Number, SWIFT/BIC Code, Bank Address
- Proof of Relationship, if sending to a family member
- Purpose Code: S0304 (Gifts under LRS)
Step-by-Step: How to Send Gift Money to Australia from India
- Select a trusted authorised platform – choose an RBI-compliant provider such as HOP Remit by moneyHOP.
- Register and complete e-KYC – provide PAN, Aadhaar, and address proof.
- Choose the purpose as “Gift” under outward remittance.
- Enter recipient details – ensure name and account information match exactly.
- Upload documentation – including a signed gift declaration.
- Review exchange rate and total cost – check both fee and currency conversion margin.
- Confirm and fund the transfer via UPI, Net Banking, or Debit Card.
- Track transfer status in real-time until settlement in the Australian account.
Transfers to Australia typically complete within 24-48 hours using digital fintech platforms.
Cost Analysis: What You Actually Pay
Sending money abroad involves more than a service fee – the exchange rate spread often determines the real cost.
Typical Cost Comparison
| Method | Speed | Average Fee | Exchange Rate Spread | Best For |
| HOP Remit by moneyHOP | 12-24 hours | Low | ~0.5-0.8% | Regular gifting, quick settlement |
| Bank Wire Transfer | 3-5 days | ₹1000-₹2000 | 2-3% | Large transfers, slower execution |
| Gift Cards | Instant | Moderate | N/A | Small, non-cash gifts |
| Demand Draft | 7-10 days | High | 2-4% | Outdated, not recommended |
Check the live exchange rates here
Recipient Experience in Australia
Funds sent under this category usually credit to the recipient’s AUD account directly. Australian banks rarely charge fees for incoming domestic AUD credits.
However, if your provider sends funds in INR or USD, the recipient’s bank may apply a conversion fee. Hence, choosing a platform that delivers local currency payout (AUD) ensures the recipient gets full value.
Compliance and Safety Checklist
To maintain regulatory safety and avoid remittance rejection:
- Always declare the purpose accurately as “Gift”.
- Avoid routing through intermediaries not licensed under LRS.
- Verify recipient details before confirming.
- Keep all receipts and transfer proofs for tax filing and RBI audit readiness.
Why Choose HOP Remit by moneyHOP
If you’re looking for a platform that makes it truly effortless to send gift money to Australia from India, HOP Remit by moneyHOP is built exactly for that purpose.
What Makes HOP Remit Stand Out
- Lowest total transfer cost in its category.
- RBI-authorized and 100% LRS compliant.
- Transparent exchange rates – what you see is what you pay.
- 24-hour rate lock to protect from market fluctuations.
- Fully digital KYC – no branch visits, no paperwork.
Whether you are sending ₹20,000 for a birthday gift or ₹5 lakh for a family milestone, HOP Remit ensures your funds arrive fast, safely, and compliantly without hidden charges or markup traps.
Start your transfer today on HOP Remit by moneyHOP and experience the fastest, safest, and most transparent way to send gift money to Australia from India.
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Smart Tips to Optimise Your Gift Transfer
- Stay below ₹10 lakh per year to avoid upfront TCS deductions.
- Split large remittances between family members’ LRS limits where compliant.
- Time your transfers when INR is stronger against AUD.
- Keep all transaction receipts for easy TCS credit during ITR filing.
- Use platforms that provide live rate transparency instead of fixed daily rates.
Who Is a Close Relative for Tax Purposes?
Under Indian tax law, the following are classified as close relatives:
- Spouse
- Parents (including step-parents)
- Children (including step-children)
- Children’s spouses
- Siblings (including step-siblings)
Sending gift money to Australia from India to any of these individuals may not attract tax for the recipient, but TCS could still apply for the sender.
Conclusion: Gifting Across Borders Has Never Been Simpler
Sending gift money abroad no longer involves complex paperwork or inflated fees. In 2025, technology, compliance, and convenience now converge to let you send gift money to Australia from India seamlessly.
With platforms like HOP Remit by moneyHOP, every transfer is transparent, compliant, and emotionally meaningful. It’s not just about moving money; it’s about keeping relationships close, even across oceans.
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