How to get money from India to UAE

Question

I have taken 25 Lac loan in UAE country and remitted this money to my mother SB account through Exchange. She withdrawn that money and used for personal commitments and bought one property. Now due to some personal problem I wanted to comeback to India, So I have to return the complete 25 Lac to bank in UAE. I have paid 5 Lac (in last 6 months), the rest 20 Lac I have to pay. I have below questions :

1. How do I get my money from India to UAE account – what are the options, can I do bank transfer from my mom SB account to my international account.
2. If yes how much do I loose in case of 20 lac due to currency conversion and commission (approximate)
3. I googled the the same and found that a. Through Hawala – but it’s too risky b. can exchange with Friends in UAE and depsoit the same in INR to their SB account in india. – is there any risk involved for any of us.

I just worried, trying to see how do I minimize my loss.

Answer 1

How do I get my money from India to UAE account – what are the options, can I do bank transfer from my mom SB account to my international account.

As you have transferred money directly to your Mothers account, getting the money back would need some paper work. Consult a CA and Bank in India, they should be able to help you. There are various limits under FEMA that would be applicable. As the amount is small a self declaration would also suffice.

If yes how much do I loose in case of 20 lac due to currency conversion and commission (approximate)

Not sure I understand this question, are you asking if you had converted X AED into Rs 20 lacs and now you have 20 lacs will you get back "x" AED or how much less?
If you Buy and Sell on the same day, typically there is a spread of 3-5% depending on the currency pair. However rates would have move up or down since then and hence this cannot be answered. You would have to see what the rates are.

b. can exchange with Friends in UAE and deposit the same in INR to their SB account in india.

Stick to Banks or authorized remittance services [like Western Union / Money Gram / etc]. Any other method you are circumventing law. One is not authorized to convert currency outside the normal Banking Channel.

Answer 2

Yes, you can transfer money to your account, any bank will do it. The conversion charges will be there i.e. the diff between USD and the rate at which the bank sells it, usually Rs. 2/-, appx. In addition, transaction charge (not very high). As for taking from friends & repaying in India, check UAE tax treatement for taking money from friends (is it considered as your income & are you liable for taxes). As for giving back, get some documentation done as a loan, otherwise your friends may be considered to be taking gift/consideration/income from you and taxed. Most straight forward way is to transfer the money from your mother's account.