| Provider | Amount Received | Fee | Exchange Rate | Speed | ||
|---|---|---|---|---|---|---|
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Smart Currency Exchange | INR 219,790.75 | 22.74AED | 21.9791 | 1-3 days | more... |
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Moneycorp | INR 217,294.86 | No Fee | 21.7295 | 1-3 days | more... |
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Global Reach (formerly FC Exchange) | INR 220,625.56 | 45.48AED | 22.0626 | 1-3 days | more... |
One-off payments | Regular payments | Great rates | Safeguarded customer funds
Great rates | One-off payments | Regular transfers | E-Money Institution | No fees for FXcompared customers
The Western Union Company is a financial services and communications company based in the United States.
The Emirate dirham (AED) is freely convertible to Indian rupees, and there are no specific money transfer restrictions when sending money from Dubai to India. As many people from India work in Dubai, this is a very popular money transfer corridor. The reasons and the amount of money transferred to India may lead to gift taxes or additional paperwork..
If you are sending money from Dubai to India, your transfer may be treated differently depending on whether or not you are an Indian national and the reason for your transfer.
Banks in India that receive a money transfer often ask for the reason for the transfer, such as family medical bills or family maintenance. Recipients of the money transfer sent by people who are non-citizens of India are not required to pay gift tax on the money they receive. In addition, non-citizens of India do not have to pay for the charges in any income tax set by the Indian Revenue. However, the rules can differ with regard to citizens of India with the status of RNOR or NRI who are holding Student (F), temporary work (H), and tourist (J) visas.
When sending money to India, any amount over 50,000 rupees will have to be declared by the person receiving it as income. They will then have to pay tax on what you send. The only time that they do not have to declare it is if they are a family member. If the person who receives the money fails to declare the money they received, then they can be subject to a fine of up to twice the original tax owed on the amount. The tax for the money would still be owed on top of the fine. The only time that gifts are not taxed for people who are not relatives is for wedding gifts.
There are many alternatives for sending money to India from traditional bank-to-bank to Western Union Dubai and MoneyGram Dubai. These are popular with the large number of less-skilled manual workers who move to the country from India and Pakistan. For higher-earning professionals sending larger funds to India, we recommend using a specialist money transfer broker.
Any money transfer from Dubai to India received by parents is not treated as income but as a gift. In addition, India has no gift tax for any relations, and there is no limit on the amount that the sender can send to their family in the country. For instance, gifting international money to India from Dubai between father and son or vice versa does not have tax implications and limits.
If the money sent to India is used for a specific purpose such as buying a property, the sender must acquire a Certificate of Inward Remittance from the bank in India where the money will be transferred. This is recommended for money transfers to India through banks as the Certificate of Inward Remittance certifies that the credit entry was accumulated from the transfer of money from Dubai to India. If ever the Indian tax authorities question the origins of large received sums, the Certificate of Inward Remittance will be a crucial document to have.
Dubai has long been a popular destination for Indians working abroad. Traditionally, the largest numbers have sought work in manual and unskilled sectors such construction, transport or retail. A significant number of Dubai’s expat professionals, however, come from India, working in banking and finance. As Dubai’s economy has broadened, the number of professionals from India finding jobs in sectors such as technology and media has risen.
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We welcome all suggestions for improvements. Send us an email at support@fxcompared.com.
FXcompared.com is an fx money comparison site for international money transfer and to compare rates from currency brokers for sending money abroad. The website and the information provided is for informational purposes only and does not constitute an offer, solicitation or advice on any financial service or transaction. None of the information presented is intended to form the basis for any investment decision, and no specific recommendations are intended. FXC Group Ltd and FX Compared Ltd does not provide any guarantees of any data from third parties listed on this website. FX compared Ltd expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from (i) any error, omission or inaccuracy in any such information or (ii) any action resulting therefrom.
