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From past 24 year I am working in Saudi Arabia, From last 1 year in my company workers do not have valid iqama. I have proper valid iqama. Most of workers cant send money to India to their family because of Iqama. I want to help them.

My salary is 2750 Saudi Riyal. I can collect money from my Indian friends in Saudi Riyal and can I send aprox 50 Thousand Saudi Riyal per month through any bank to my NRE account in India. So from my Indian NRE account I can transfer to my friends/family account.

Dheer
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Ramesh Kumar Chauhan
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1 Answers1

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Check with Lawyer and CA who deals with international laws.

It maybe illegal in Saudi Arabia.

From India tax point of view, any credits into NRE account is not taxable. However credits to friends/family will be treated as GIFT and friends/family will be liable to pay a gift tax if such transfer are more than Rs 50,000/- per year.

Although FEMA does not prohibit explicitly such arrangement, these look like round about way of moving money and can be investigated.

Dheer
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