Transfer money from Dubai to India - Compare AED to INR (2023)

How to Transfer Money from UAE to India

UAE to India Guide

Summary

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..

Regulations for sending money from Dubai to India

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.

Sending money to family

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.

Sending money for property purchases or other reasons

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.

Indians in Dubai

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.

Frequently Asked Questions

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