By Adil Ahmad, Business Setup Consultant at Gulf Corporate Services · Last updated
Summary
You can legally send money from India to the UAE through a bank or an authorised remittance platform under RBI’s Liberalised Remittance Scheme, up to USD 250,000 per financial year. Transfers above INR 10 lakh a year attract TCS, usually 20%. This guide compares the best ways to transfer money from India to UAE, charges, TCS for FY 2026-27, documents, UPI rules, property payments and NRI repatriation.
Can I Send Money from India to UAE Legally? LRS and FEMA Rules
Yes. Resident Indians send money abroad under the Liberalised Remittance Scheme (LRS), which sits under FEMA. The RBI’s LRS FAQ sets out the full rules, and the key ones are:
- Annual limit: USD 250,000 per person per financial year (April to March)
- Channel: only through an authorised dealer bank or a platform that works through one
- PAN is mandatory for every LRS transfer
- Purpose must be declared, such as family maintenance, gift, education, medical treatment, travel, investment or buying property
- Hawala is illegal. Informal transfers breach FEMA and can lead to heavy penalties
NRIs sending their own money from an NRE or NRO account follow separate repatriation rules, covered below.
Best Way to Transfer Money from India to UAE: Methods Compared
| Method | Best for | Typical cost | Speed |
|---|---|---|---|
| Online remittance platform (Wise, BookMyForex and similar) | Small to medium personal transfers | Low fee, near mid-market rate | Same day to 2 working days |
| Bank wire through net banking (SBI, HDFC, ICICI, Axis) | Large, documented or business transfers | Fee plus SWIFT charges plus rate margin | 1 to 4 working days |
| Bank branch outward remittance | Property, tuition or first-time senders | Highest total cost | 1 to 3 working days |
| Forex card or cash | Travellers spending in Dubai | Card loading fee and rate margin | Instant |
| NRE account transfer (NRIs) | Moving your own savings back to the UAE | Bank fee and rate margin | 1 to 3 working days |
In my experience, the exchange rate margin costs more than the fee in most India to UAE money transfers. A 1.5% margin on INR 5 lakh is INR 7,500, which is far more than a typical INR 500 fee. Always compare the final AED amount the recipient gets.
India to UAE Money Transfer Charges: Fees, Rate Margin and GST
Your total cost has four parts:
- Transfer fee: set by the bank or platform
- Exchange rate margin: the gap between the mid-market rate and the rate you get
- SWIFT or correspondent charges: often AED 20 to 60 deducted on the UAE side for bank wires
- GST on currency conversion: charged on a sliding scale, for example 0.18% of the amount up to INR 1 lakh, subject to a minimum
To send money from India to Dubai without charges eating into the amount, choose the “OUR” charge option on bank wires so the recipient gets the full sum, and compare at least two providers on the same day.
TCS on Money Transfer from India to UAE (FY 2026-27)
Tax Collected at Source (TCS) applies once your total LRS remittances cross INR 10 lakh in a financial year. Budget 2026 cut some rates from 1 April 2026.
| Purpose | TCS up to INR 10 lakh | TCS above INR 10 lakh |
|---|---|---|
| Family maintenance, gift, investment, property | Nil | 20% |
| Education (self-funded) or medical treatment | Nil | 2% |
| Education funded by a loan from a financial institution | Nil | Nil |
| Overseas tour package | 2% from the first rupee | 2% |
Example: you send INR 15 lakh to your brother in Dubai as a gift. The first INR 10 lakh is TCS free. TCS of 20% applies to the remaining INR 5 lakh, so the bank collects INR 1 lakh.
TCS is not a final tax. You claim it back as a credit when you file your income tax return. Wise’s TCS guide explains how the threshold is tracked across banks.
How to Send Money from India to UAE Bank Account Online: Step by Step
- Choose your provider. Compare the AED received, not just the fee.
- Complete KYC. Upload PAN and address proof, and link your Indian bank account.
- Add the recipient. Enter the full name, UAE bank name, IBAN (starts with AE and has 23 characters) and SWIFT code.
- Select the purpose. Pick the correct purpose code, such as family maintenance or gift.
- Enter the amount. Check the rate, fees and TCS shown before you confirm.
- Sign Form A2. Most platforms do this digitally as part of the LRS declaration.
- Pay from your bank account. Use net banking, NEFT or RTGS from an account in your own name.
- Track and save records. Keep the confirmation for your tax return and LRS tracking.
If the recipient is setting up in the UAE, our guide to opening a non-resident bank account in the UAE explains which accounts can receive funds.
Documents Required to Transfer Money from India to UAE
- PAN card (mandatory)
- Aadhaar or another address proof for KYC
- Form A2 and LRS declaration
- Recipient’s IBAN, SWIFT code and bank details
- Proof of purpose for larger transfers, such as a property sale agreement, tuition invoice or hospital estimate
- Source of funds documents for high-value transfers, if the bank asks
Can I Send Money from India to UAE Through Google Pay or UPI
No, not as a person-to-person transfer. Google Pay, PhonePe and other UPI apps in India do not support outward remittances to foreign bank accounts. UPI International works differently: when you travel to the UAE, you can activate it and pay at merchants that accept UPI QR codes, with the amount debited from your Indian account. Gulf News has a simple guide on activating it.
For sending money to a UAE account, use a bank wire or an authorised remittance platform.
Sending Money to Dubai for Property Purchase or Business Setup
Buying property in Dubai is allowed under LRS. The RBI’s FAQ on immovable property confirms that resident individuals can remit funds to buy property outside India, and family members can pool their LRS limits. Keep in mind:
- Every rupee counts toward your USD 250,000 annual limit
- TCS of 20% applies above INR 10 lakh, which matters for down payments
- Pay the developer or the escrow account directly, and keep the sale agreement for your bank
For founders, setting up a UAE company is an overseas investment under India’s ODI rules, so speak to your bank before remitting share capital. Once you are ready, our team handles business setup in Dubai from licence to bank account, including mainland company formation in Dubai and free zone company setup. Property investors may also qualify for the UAE Golden Visa.
Business Payments from India to UAE Suppliers and Companies
LRS is for individuals only. If an Indian company pays a UAE supplier, it uses a business outward remittance through its bank, backed by an invoice, a purpose code and, where needed, Form 15CA and 15CB for tax. Common business transfers include:
- Paying for goods imported from Dubai traders
- Paying UAE service providers or consultants
- Funding a UAE subsidiary under overseas investment rules
On the UAE side, the receiving company needs a valid licence and bank account. Our company registration in Dubai team sets this up, and our corporate tax advisers help you book these receipts correctly.
Transfers for NRIs: NRE and NRO Repatriation to the UAE
If you live in the UAE and hold Indian accounts:
- NRE account: principal and interest are fully repatriable to your UAE account
- NRO account: you can repatriate up to USD 1 million per financial year after paying tax, usually with Form 15CA and, where needed, a CA certificate in Form 15CB
Moving money from an Indian account to a UAE account is easiest when you have a UAE resident bank account. Our UAE residence visa team can help you get one through employment or your own company.
INR to AED Exchange Rate: When to Send
The dirham is pegged to the US dollar at 3.6725, so the INR to AED rate moves with the rupee against the dollar. In late October 2026 it was around INR 26 per AED, so INR 1 lakh buys roughly AED 3,850 at mid-market. Use rate alerts and send larger amounts in parts if you want to average out swings.
Common Mistakes When Sending Money from India to UAE
- Ignoring the exchange rate margin and comparing only fees
- Crossing INR 10 lakh without planning for TCS
- Using a relative’s account instead of your own
- Choosing the wrong purpose code
- Using hawala or informal agents
- Sending company capital as a personal gift
Expert Tip from Adil Ahmad
If you are moving money to start a business in the UAE, set up the company and its bank account first, then remit as a documented investment. It keeps your LRS records clean and makes UAE bank onboarding much faster. Our corporate bank account opening and accounting services teams handle both sides. Founders looking at the wider Gulf can also explore business setup in Saudi Arabia.
Frequently Asked Questions
What is the best way to transfer money from India to UAE?
For most personal transfers, an online remittance platform gives the best AED amount. For large or documented transfers, a bank wire works well.
How much money can I send from India to UAE?
Up to USD 250,000 per person per financial year under LRS.
Is there TCS on sending money from India to UAE?
Yes, above INR 10 lakh a year. It is 20% for most purposes and 2% for education or medical treatment.
Can I send money from India to UAE through Google Pay?
No. Indian UPI apps cannot send money to foreign bank accounts. Use a bank or an authorised remittance platform.
How long does an India to UAE money transfer take?
Same day to 2 working days on most platforms, and up to 4 working days for SWIFT wires.
Can I send money from India to buy property in Dubai?
Yes, under LRS, within the annual limit, with TCS above INR 10 lakh.
What is the maximum limit for money transfer from UAE to India?
The UAE sets no fixed cap for personal remittances to India, but banks and exchange houses run checks on large transfers.
Do I need PAN to send money abroad?
Yes. PAN is mandatory for all LRS remittances.
Get Expert Help with Your UAE Move
Whether you are funding family, buying property or starting a company, our team makes the UAE side simple. Read how to start a business in Dubai, check costs with our business setup cost calculator, or speak with our business setup consultants.
