New Delhi, Sept. 29 -- Indian parents looking to help an NRI or OCI child buy property overseas must consider foreign exchange regulations and tax implications before transferring funds.

Such transactions are governed by the Foreign Exchange Management Act (FEMA) and the Reserve Bank of India's (RBI) Liberalised Remittance Scheme (LRS). Families must also decide whether the contribution will be treated as a gift or a loan and account for taxes, documentation and foreign exchange costs.

Here's what parents need to know before transferring money for an overseas property purchase.

An Indian resident can remit up to $2,50,000 per financial year under LRS for permitted current account transactions, capital account transactions, or a combina...