Sending Gift Money To Australia From India – A Complete Guide

The Indian community in Australia is incredibly diverse and vibrant, with people from different linguistic and cultural backgrounds. They have made contributions to society in fields like business, academia, the arts and sports. Lately, they have also become more involved in activities, with many governments holding offices and actively engaging in community matters. The amount of money sent back to India by non-resident Indians has seen a notable increase of 26% in FY23, totaling around US$112.5 billion, as per a report from Financial Express. This clearly demonstrates their impact. Australia’s robust economy thrives on factors such as consumer spending, a flourishing mining sector, and tourism, as well as government investments in infrastructure and education. The presence of the diaspora adds richness to Australia’s fabric while contributing significantly to its economic growth.

Economic Co-Operation Between India & Australia

In the year 2023, India and Australia are taking steps to improve money transfers. They have implemented initiatives such as the India-Australia Economic Cooperation and Trade Agreement (ECTA), which came into effect in December 2022. The Reserve Bank of India (RBI) and the Reserve Bank of Australia (RBA) are working together on a real-time payment system that is scheduled to launch in 2024. This system aims to make money transfers faster and more cost-effective. Moreover, private companies in both countries are leveraging technologies like blockchain to simplify the transfer process. These combined efforts have prospects for making cross-border money transfers between India and Australia more affordable and efficient.

Modes of Sending Gift Remittances to Australia

1. Cash: There are ways to send money to Australia, including using a courier service or sending it through the postal service. It’s essential to be aware that sending cash internationally carries some risk as it is more vulnerable to theft and fraud.
2. Gift Cards: Sending money to Australia can be made easier with the use of gift cards. There are plenty of retailers where you can buy these gift cards and have them conveniently delivered to the recipient in Australia. The great thing about gift cards is that they provide the recipient with a range of shopping options, making them a versatile and thoughtful gift choice.
3. Certificate of Deposits (CD): A CD is a savings account that provides a higher interest rate compared to a standard savings account. Individuals have the option to buy CD’s from either banks or Non-Banking Financial Companies (NBFCs) in India and have them delivered to recipients in Australia. The recipient can later convert the CD into cash upon its maturity. CD’s generally require a deposit and have a term ranging from 1 to 5 years.
4. Wire Transfer: Sending money internationally via wire transfer is an efficient method. You have the option to initiate a wire transfer either from your bank account or by using a money transfer company. On average, wire transfers usually take around 1–2 business days to complete the process successfully.
5. Money transfer companies: There are companies specializing in international money transfers that provide services for sending money across borders. Such companies often provide reasonable exchange rates and ensure speedy processing times.

Comparison of Cross-Border Payment Methods

Documents Required For Remitting Gift Money To Australia

The documents required for remitting gift money to Australia from India may vary depending on the money transfer service you use. However, some of the common documents required include:

• Passport: Passport number
• Proof of Identity: Government-issued ID, such as driver’s license or PAN card
• Gift Letter: Letter stating that the money is a gift
• Recipient’s Details: Full name, address, and bank account information

Make sure to reach out to the money transfer service you’re using and find out what documents they specifically need. You might have to submit paperwork like a marriage certificate or birth certificate if you’re transferring money to your spouse or child.

Calculation of TCS on Remittances

Here are a few additional points to keep in mind:

• As per the RBI, Under the Liberalized Remittances Scheme (LRS), every Indian resident can send up to USD 2,50,000 in a financial year. An individual can remit multiple times during the year for various purposes permitted under the LRS limit. However, the total amount of all such transactions must not exceed USD 2,50,000 in a Financial Year.
• It’s worth mentioning that the TCS on remittances is applicable even if the amount is sent to a close family member.

Rates & Fees

The charges and fees for sending gifts from India to Australia will vary based on the following factors:

• The specific amount of money being sent
• The chosen method of sending
• The bank or money transfer service being utilized

Why choose HOPRemit?

HOPRemit by moneyHOP is an instantaneous, cost-effective, user-intuitive, and contactless international remittance service that is tailor-made to serve Indians. It provides customers with complete transparency and significantly reduces the total transaction costs of sending money abroad. The HOPRemit platform represents the perfect concoction of a fintech’s agility and the security observed in a bank.

Here Are Some Features That Make HOPRemit Different:

• Best Exchange Rates: HOPRemit provides some of the best exchange rates for currency conversions. They regularly update their exchange rates to ensure that customers get the most favorable rates possible.
• No Hidden Charges: HOPRemit is committed to transparency and honesty in their dealings. They do not charge any hidden fees or commissions, so customers can rest assured that the amount they see at the time of the transaction is the exact amount they will be charged.
• Fast Processing Time: HOPRemit understands the importance of timely money transfers. They process transactions quickly, usually within 48 hours, so that the money reaches the recipient as soon as possible.
• 24/7 Availability: HOPRemit operates round-the-clock, 365 days a year. Customers can access their services at any time of the day or night, regardless of their location.
• Freeze Exchange Rates for 24 Hours: HOPRemit offers the option to freeze exchange rates for up to 24 hours. This means that customers can lock in a favorable exchange rate and be certain that the amount they will receive at the time of the transaction will remain the same, regardless of any fluctuations in the market.

5 Simple Steps To Transfer Gift Money With moneyHOP

• Create an Account: To get started with HOPRemit, you’ll need to create an account by signing up using your email address and phone number. This process is quick and easy, and once you’ve signed up, you can start using the platform right away.
• Enter The Amount: Once you’re signed in, the first step is to choose the amount you want to send. You can do this by selecting the currency you want to send, choosing the purpose of the transfer, and entering the amount you want to send.
• We’ll Verify Your Details: To ensure security and prevent fraud, HOPRemit requires all users to complete their KYC (Know Your Customer) verification process. This involves providing some basic information about yourself, such as your name, date of birth, and address, and uploading a valid government-issued ID, such as an Aadhaar or PAN card. The verification process usually takes just a few minutes, and once completed, you’ll be able to use all the features of the platform.
• Enter Recipient Details: Once your account is verified, you can enter the details of the recipient you want to send money to. This includes their name, address, and other relevant information, such as their bank account details. You may also need to upload some additional documents, such as a proof of relationship or bank statement, depending on the purpose you have selected.
• Pay For Your Transfer: Finally, you’ll need to choose how you want to pay for your transfer. HOPRemit offers several payment options, including net banking, credit/debit cards, and UPI (Unified Payment Interface). Once you’ve selected your preferred payment method, you can complete the transaction, and your recipient will receive the funds within a few hours or days, depending on the country and payment method used.

Who Are All Considered As Close Relatives?

The following are considered to be close relatives:

• 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)

Who All Do We Serve?

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Way Forward

To send gift money from India to Australia, there are some steps you should follow for a hassle-free process. Understanding the exchange rates and fees associated with each option is vital so that you can make an informed decision. It’s also essential to stay aware of any regulations or restrictions imposed by both countries in order to ensure a smooth transfer. By following these guidelines and doing research, you can easily send gift money to your loved ones in Australia. So go ahead and bring joy to your dear ones on special occasions.