A resident person may lend rupees to any of their siblings in their NRO (non-resident ordinary) account in accordance with the terms of the Liberalized Remittance Scheme (LRS), according to Harshal Bhuta, partner at P.R. Bhuta & Co. Chartered Accountants, as published by Mint. However, there are a number of requirements related to the loan arrangement, including the minimum tenure, end use negative list, manner of repayment, etc. The loan amount cannot be remitted outside of India, according to another clause.
On the other hand, your sibling may give the money to you as a gift. You can get the cash as a gift from your sibling in your international bank account or in your NRO account in India, depending on your preference. The LRS framework that will apply to your brother would encompass both modes of receipt.
Additionally, your sibling may be eligible to claim TCS (tax collected at source) on the cash transfer as a credit against their future tax burden. TCS is a payment method that is available in India.
Since giving gifts to siblings is tax-free in India, the transaction would not be taxable for you.
Disclaimer: This article is for informational purposes only.
