To begin with, it is imperative to understand what remittance is. Aid sent to an acquaintance settled in a foreign land or backing up someone going abroad financially is termed Outward Remittance.
Monetary needs are super essential whenever we or someone close to us travel to the land of unknowns, they will most certainly look back at their natives in their respective homelands to help them in challenging times, that is when remittance and RBI licensed ADII companies like PAUL MERCHANTS come to assistance.
An amount equivalent of $250,000 USD is remittable per financial year under the LRS scheme as indicated by the RBI and can be done for bonafide purposes listed under the Foreign Exchange Management Act of 1999.
Remitting in dire circumstances becomes perplexing sometimes, but it can be easy if you as the remitter or sender have basic knowledge about the documents needed and the precision required in the whole due process.
Let’s not delay and start with the MOST ESSENTIAL AND PRACTICAL THINGS one should know while remitting overseas.
There are types of remittances
- Education or Student remittance
- Medical Remittance
- Personal Remittance
- International Event Remittance
- Remittance for Film Shooting
- EPF (Employment Processing Fees).
Let’s specify the testaments needed for all mentioned above.
Student or Education Remittance
Students studying in the non-native countries generally need to pay their university admission fees or tuition fees in a limited span of time, for that matter they ask their guardians back home to support them and Remitt, all you need are these certified documents
- INVOICE from the university /Offer letter
- Pan Details of the remitter
- Passport of Student
- Complete Bank account details of the Beneficiary
- KYC of Remitter
- The ID of the Remitter Specifying the Relation with the student
- Payment Proof
Except these, one thing that I precisely recommend to all students is Travel Insurance, it is a must and affirmatively helps in case of any luggage lost or missed flights.
Managing Director,
Paul Merchants
Medical Treatment
If the patient is in acute need of treatment outside the native country then besides the mentioned documents certain exceptional substantials are needed
- INVOICE from the Hospital
- Prescription or recommendation of the advised treatment by the treating doctor abroad and from the native country as well.
- Visa of the Patient
As we all know the tax slabs under the LRS scheme have been recently revised by the finance ministry, but the TCS charges applied on Medical and Student remittances have remained unchanged, it will be as before only 5%.
Gifting’s or other expenses that are Remitted are categorised under Personal remittance, all the latter documents mentioned are the same but the TCS has been recently increased to 20% and will be applicable from the upcoming July 2023
For all other like International Event Remittance, Film Shooting or Employment Processing Fees you need all the basics like VISA, Passport, and Raised Invoices from the other party in a foreign land.
NO TCS is charged on film shooting as it is not covered under the LRS scheme, but for others like international events and employee processing fees, 20% as intimated by the finance ministry for this new financial year will pertain.
I am sure that this vital piece of information will genuinely help all, who sometimes struggle or are misguided by miscreants for sending funds through Hawala, the process is really simple and extremely fast with registered ADII companies like Paul Merchants.
