How much gift money can be sent to Canada from India?

Indian individual residents can transfer a maximum of USD 250,000, equivalent to approximately 334,000 Canadian Dollars (CAD) within a financial year spanning from April 1 to March 31 of the subsequent year.

How much gift money can I send to Canada without tax?

In a financial year, an Indian resident can freely send gift money up to INR 7 lakhs without being subject to any tax obligations. Nevertheless, when the gifted amount surpasses 7 lakhs, a 20% Tax Collected at Source (TCS) will come into effect.

How much gift money can parents send from India to Canada?

Under the Liberalized Remittance Scheme (LRS), parents can remit funds up to USD 250,000 during a financial year.

How can I send money to my son or daughter in Canada?

Using moneyHOP, you can send money to Canada in 3 to 5 easy steps. Step 1: Sign up using your email address and password if you are a first-time user. If you are already a member, simply login to the platform. Step 2: Select the currency and the amount that you want to exchange. Step 3: Upload your KYC documents online (only for the first time user) Step 4: Add or select the recipient’s account details Step 5: Make the payment online and that’s it!

What is the cheapest way to transfer gift money from India to Canada?

When evaluating aspects like fees, exchange rates, and speed of delivery, online money transfer services like moneyHOP stand out as the more attractive option. For instance, moneyHOP offers a competitive flat fee of INR 200 and near-zero markup forex rates for international transfers, while bank transfers often involve higher processing fees starting at INR 500, resulting in a generally greater overall cost.

How much will it cost to send gift money to Canada?

Only a competitive flat fee of INR 200 plus near-zero markup Forex rates using moneyHOP. If you are transferring an amount above INR 7 lakhs, you have to pay 20% TCS (tax collected at source).

What are the best ways to send money to Canada?

Below are popular methods by which you can send gift money to any person residing in Canada. Online Money Transfer Services – Fast and cost-effective, with competitive exchange rates and typically taking 12-48 hours to reach the recipient. Bank Transfers – Relatively fast (usually take 2-3 business days) and levy higher fees. Prepaid Cards – Load INR onto a multi-currency card for easy spending in the designated country. Cheque: Possible but slow and may involve additional bank fees.

Is there a limit to how much I can gift abroad?

Yes, USD 2,50,000 per year under LRS.

What if I want to gift more than ₹7 lakh?

You’ll pay 20% TCS depending on timing and purpose.

Yes, it uses top-tier encryption and is RBI compliant.

Can I claim tax exemptions when sending money abroad?

For close relatives—yes. Always check with your tax consultant.

Can I send gift money from India to Canada legally?

Yes, under the RBI’s LRS scheme, Indian residents can legally send gift money to Canada up to USD 2,50,000 per financial year.

Which is the best platform to send gift money to Canada from India?

Platforms like HOP Remit by moneyHOP offer low fees, fast transfers, and great rates with no hidden charges, making it a preferred choice.

What documents are required to send a gift to my NRI daughter in Canada?

You’ll need sender and recipient details, purpose of gift, and identification documents such as PAN or Aadhaar for KYC.

Can parents gift money to NRI children from India?

Yes, parents can send money to their children abroad as a gift under LRS, and in many cases, it's tax-free if it qualifies as a gift to close relatives.

Can I send gift money to Canada legally from India?

Yes. Under India’s Liberalized Remittance Scheme, resident individuals may send gift money to Canada up to USD 250,000 per financial year, provided the purpose is properly declared and compliance documents are maintained.

Is the recipient liable for tax in Canada when I send a gift?

No. Most family gifts are not taxed as income in Canada. The recipient may have no tax liability on the gift amount itself.

What is the fastest way to transfer gift money to Canada from India?

Using a regulated digital remittance platform that offers live-rate FX, transparent fees and express credit (often within 24-48 hours) is the fastest route.

Category – Finance

How to Send Gift Money to Canada from India in 2025 – The Complete Guide

Updated On:

Sep 2, 2025

Karthik

Every act of giving tells a story. For Indians with loved ones in Canada, one of the most meaningful ways to show support is to send gift money to Canada. Whether it’s for a milestone celebration, a study expense, or an emergency aid, the transfer matters emotionally and financially.

In this guide, you’ll learn exactly how to send gift money to Canada in 2025, including regulatory rules, tax implications, best-in-class transfer platforms, and tactical ways to reduce cost and friction.

Why this matters now

India’s outward remittances under the Liberalized Remittance Scheme (LRS) continue to grow; the cap remains USD 250,000 per financial year for resident individuals.

The Reserve Bank of India has raised the TCS-free threshold for LRS remittances from ₹7 lakh to ₹10 lakh per year (effective 1 April 2025) for most purposes.

For many senders and recipients, a well-structured gift money transfer avoids tax risks, delays and inflated fees.

If you follow the process carefully, you can send gift money to Canada legally, swiftly and with transparency.

Can you send gift money to your NRI child, spouse or relative in Canada?

Yes, and hundreds of thousands of Indians do it annually.

A “gift” for this purpose means funds sent without expectation of return or repayment.

If you are an Indian resident sending funds to a close relative in Canada, you can send gift money to Canada; Canadian tax authorities do not treat the amount itself as taxable income for a close relative.

Ensure you document the purpose, relationship and source properly so your bank or authorized dealer sees the transaction clearly as a “gift” under LRS.

Need to pay your university fees and living expenses abroad?

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How much can you send under LRS, and what triggers TCS?

Parameter	Value/Note
Annual limit	USD 250,000 per financial year per resident individual under LRS.
TCS-free threshold (most purposes)	₹10 lakh per financial year, effective 1 April 2025. Remittances above this trigger tax collected at source.
Rate of TCS for “gifts / other purposes” above threshold	20% of the amount in excess of ₹10 lakh, for “other purposes,” including gifts.
Purpose exceptions	Education (loan-funded) → 0% TCS; Education (self-funded) / Medical → 5% above ₹10 lakh. Gifts are not exempt beyond the threshold.

Key takeaway: If you plan to send large gifts, structure the amount and timing so you stay under the ₹10 lakh threshold (or accept the TCS hit and plan accordingly).

Documents you should collect before transferring

PAN card of the remitter

Declaration/air-purpose form under LRS (“Gift to NRI relative” or similar)

Recipient’s Canadian bank details (account number, branch/SWIFT, name exactly as on bank record)

Proof of relationship (for “close relative” status) optional but strong for audit trail

Funding source (bank statement showing funds being remitted, mode e.g., net banking/UPI/card)

Transfer receipt and beneficiary credit confirmation after execution

These will help you send gift money to Canada with minimal ambiguity and smooth compliance.

Feature: Case Study & Cost Comparison

Anita in Bangalore needed to send ₹6 lakh (~CAD 10,800) to her sister in Toronto for a wedding gift. She used a traditional bank wire and paid ₹14,000 in fees + markup. Later, she tried a digital remitter and got a landed cost of ~₹10,400 for the same value. Savings: 26%.

Also read: Cost of Living for International Students in Toronto

Comparison: Bank Wire vs Fintech Platform vs Specialist Remitter

Channel	Cost & Margins	Time to Credit	Transparency
Traditional Bank	Higher fees, non-transparent FX markup	2-5 business days	Low
Generic Fintech	Lower fees, better FX	1-2 days	Medium-High
Specialist Remitter (e.g., HOP Remit by moneyHOP)	Competitive FX, fixed fees shown up front	Often same-day to 24h	High

When you send gift money to Canada, optimal choices matter every rupee saved is value to your receiver.

Step-by-step: How to send gift money to Canada efficiently

Confirm you are inside the USD 250,000 annual LRS ceiling.

Choose a platform and channel based on cost, speed, and reliability.

Complete KYC, declare “gift” as purpose, and add beneficiary.

Monitor the live exchange rate + fees; lock in if possible.

Make payment (net banking/UPI/permitted instruments).

Save transaction confirmation and track until the beneficiary receives funds.

Retain receipts and required documents for tax/audit purposes.

If your objective is to send gift money to Canada in under 48 hours with minimal cost, this workflow covers all major leak points.

Why HOP Remit by moneyHOP is a top choice

When your goal is to send gift money to Canada with minimal friction and maximum value, here’s why HOP Remit stands out:

Real-time exchange rates, no hidden markups.

Clear fee disclosure up front, so landed cost is known.

Typical credit time: 12-24 hours for standard Canada transfers.

Purpose “Gift” selectable in platform interface.

Full compliance: KYC, LRS remittance tracking, remitter/recipient support.

Get a cost estimate now on HOP Remit → calculate landed value for your gift → initiate transfer. By doing so you ensure your loved one in Canada receives the full value of what you intended.

How to Send Gift Money to Canada from India in 5 Simple Steps?

Open Your HOP Remit Account: It is as simple as pie to get started. Just register with your email address and phone number. It is quick, and you will be up to send money in minutes.

Enter the amount you intend to send: Once you’re inside, go ahead and input the amount you’re looking to transfer. Choose the currency, select the transfer purpose, and you’re halfway there.

Double Check Your Details (Super Simple!): We’re security focused, so we just ask for a quick KYC (Know Your Customer) check. Just give us your basic details—name, birth date, and address—and share a valid identity document (Aadhaar or PAN card). Piece of cake, and you’ll be live with the full capabilities of the platform in no time.

Finally, complete the details of your beneficiary including his or her name, address, and banking information. Depending on the purpose, we might require one or two other documents, for instance, a proof of relationship or a bank statement.

Pay up and you’re done: Choose your payment mode—net banking, credit/debit card, or UPI—and go ahead with the payment. The money will be in the process of being transferred, typically in hours, depending on the payment gateway and the country.

Who Are All Considered As Close Relatives?

The following are considered to be close relatives:

Members of HUF (Hindu Undivided Family)

Husband and Wife

Father (Provided that the term “Father” includes step-father)

Mother (Provided that the term “Mother” includes the step-mother)

Son (Provided that the term “Son” includes the step-son)

Son’s wife

Daughter

Daughter’s husband

Brother (Provided that the term “Brother” includes the step-brother)

Sister (Provided that the term “Sister” includes the step-sister)

Check our live exchange rates here

Gift Deeds & Canadian Rules

For large transactions, a gift deed from India to Canada is advisable. It’s a signed document acknowledging the transfer is a gift. In Canada, gifts above CAD 10,000 may need to be reported but are usually not taxed.

Keep records to avoid issues with financial institutions or future scrutiny.

Must read: 10 Things You Must Know About Intermediary Bank Fee in International Money Transfers

Smart structuring tactics to optimise cost & compliance

Stay below the ₹10 lakh threshold if you can spread smaller gifts across the year.

For gifts above the threshold, calculate the TCS cost, claimable credit, and net landed value.

Document clearly: “Gift to daughter/son/spouse/parent” under the close relative category. If you are sending to non-relatives, treat the purpose as “gift/international support,” but maintain full documentation.

Use rate-lock or transfer when FX looks favorable, when you send gift money to Canada for big occasions.

Keep an audit folder for each transfer (remitter bank advice, purpose declaration, beneficiary credit proof) for at least 8-10 years.

Who All Do We Serve?

Customer	Description
Overseas university students	Send your university fees and living expenses with no hassle
International Travelers	Pay for your accommodation and itinerary in advance
Overseas family/guardians	Send gifts/maintenance money to your family in another country
Medical tourists	Pay for your treatments in another country in advance
Business travelers	Facilitate business travels like a pro with fully planned and paid advanced bookings

Save big on your every international money transfer!

Send money at the lowest exchange rates & ZERO convenience fees with moneyHOP.

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Summary: Make your gift count

When you send gift money to Canada, do so with clarity, speed and fairness. Respect the rules under the LRS, keep costs low, pick the right platform, and build an audit-ready trail.

HOP Remit by moneyHOP delivers a best-in-class solution: live rates, transparent fees, regulatory compliance and one of the most efficient India→Canada transfer flows available.

Use this guide as your blueprint. Then execute perfectly.