MUMBAI: There is a sudden, inexplicable surge in money that Indians are sending abroad for ” maintenance of close relatives”. Such fund transfers typically add up to $10-20 million a month. But in July 2015, according to the latest available data, total remittance under this head crossed $124 million.
Also, money remitted in July to students studying in foreign colleges and universities rose more than six times in one year to $113.9 million.
What has caused the spurt in remittance? Tax experts suspect this could be an attempt to escape the American tax authorities.
Two senior financial services professionals ET spoke to believed that a large part of fund flow — particularly, remittance to relatives — could have been triggered by US-based Indians trying to escape the American tax authorities.
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