While sending money to India, it is crucial to be aware of transaction limits
NRIs remit money to India due to a host of reasons. To serve the purpose, they can either use the online money transfer or wire transfer method. Many NRIs often ask, “how much money can I transfer online?”
Money transfer limit for NRIs
An NRI should be aware of remittance limits. There is no ceiling on the money an NRI can send to India. This money, however, needs to be earned through legit means. You also have to pay the required taxes on this money in the country it was earned.
Taxation aspect
There is also an aspect of taxation to the money being sent to India. Let us say that the person you send the money to is related to you by blood. The spectrum includes your spouse, children, grandchildren, siblings, and in-laws. In such a case, you do not need to pay taxes on the amount sent. Even if the money is being sent as a wedding gift or inheritance, it is not taxable.
However, if an NRI transfers money to someone not related by blood, then there is a tax aspect. Any amount over Rs 50,000 in a year is taxable. Let us say that you are sending Rs 1, 00,000 to a friend in India. This amount will be added to your friend’s income. The receiver has to pay a tax on this income.
Sending money from the US
However, the rule is different while sending money from the US. When you send money from US to India, the relationship between the sender and receiver is not important. The maximum tax-free amount you can send in a year is $14,000. Up to $14,000, no tax is charged. Beyond that amount, it would be subject to gift tax for the sender. The money can be sent to more than one person. So, you can send $6,000, $4,000 and $4,000 to three people and it will not attract any tax.
There’s another bit to this. Sending large amounts of money may affect your gift tax exemption limit for a lifetime.
Sending money from other countries
Other countries may also have limits on how much money can be sent to India. You may find the cap from the money transfer service you are using. HDFC Bank has a money transfer service called Telegraphic,Wire Transfer or NRI Account. You can use Wire Transfer to send money to India from Singapore and Australia. Its quick, efficient and secure.
Looking to transfer money online ? Sign up with our NRI Account Services today and transfer money hassel free.
Read more on 4 online money transfer tips for NRIs. Click here to know more.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circ*mstances.
FAQs
The RBI imposes a limit on repatriation of funds from NRO accounts, which is currently up to USD 1 million per financial year (April to March) for bona fide purposes, subject to certain conditions and documentation.
What is the limit of NRI account transfer? ›
There are no restrictions on the amount of current income that NRIs can repatriate from their NRO account, including rent, dividends, pensions, interest, and so forth. Nevertheless, the amount of assets (other than current revenue) that can be remitted is limited to $1 million per fiscal year.
Is there any limit for NRI account? ›
The money deposited in foreign currency in this account is automatically converted to the equivalent Indian Rupee (₹) by the bank as per the prevailing currency conversion rates. There is no upper limit on the account balance that can be maintained in an NRE account.
How much money can NRI transfer to India from USA? ›
There is no money transfer limit on how much you can transfer to India from the US, at least none imposed by the Indian or US governments. However, the specific money transfer or banking service that you are using might impose limits on how much they can accommodate in a single transfer.
How much money can you send to a NRE account from the USA? ›
Send as much money you want: The Foreign Exchange Management Act (FEMA) does not specify any limit on the amount of money you send to a NRE account. However, this income needs to be earned legally in your country of residence. If you are transferring very high amounts you may be asked to explain your source of funds.
How much money can NRI transfer to parents in India? ›
According to the Union Budget for 2023-24, any monetary gift above Rs 50,000 received by a not-ordinarily resident Indian from a resident Indian would be deemed to arise in India. From 1 April 2024, such a gift will be taxable.
What is the IRS limit for international money transfer? ›
International money transfer limit: IRS
The IRS doesn't place limits on the amounts of money being sent, but there are reporting requirements for payments valued at 10,000 USD or more — or individual payments made within a short period which in total add up to over 10,000 USD.
How much money can be transferred from the USA to India without tax? ›
How to Transfer Money from the USA to India without Paying Taxes? There is no way to completely exempt tax on money transfers from the USA to India. According to American laws, you can remit a maximum of $14,000, after which gift taxes will be applicable.
Can NRI send money to spouse in India? ›
It is perfectly legal to send money to your wife in India but the nature of transfer from your account to that of your wife needs to be determined—whether it is given as loan or gift or income, as there are different FEMA (Foreign Exchange Management Act) rules for each type of transaction.
What are the disadvantages of NRI account? ›
Deposits made in foreign currencies in an NRE account are subject to conversion into Indian rupees. Hence, such deposits might fluctuate in value due to appreciation of domestic currency (or depreciation of foreign currency), thereby incurring losses during repatriation.
According to the Liberalized Remittance Scheme (LRS) for money transfers overseas, there is an annual cap of 250,000 USD or its equivalent on international fund transfers by any resident individual in a financial year.
How can I transfer large amount from USA to India? ›
RemitMoney is simple, effective and reliable service for money transfer. It provides peace of mind while transferring large amount of funds from US to India within few hours whereas other providers usually takes 3-4 business days. Thanks to RemitMoney for fantastic service.
What is the limit for international money transfer? ›
How much money can you wire without being reported? Financial institutions and money transfer providers are obligated to report international transfers that exceed $10,000. You can learn more about the Bank Secrecy Act from the Office of the Comptroller of the Currency.
What is the maximum amount you can transfer to NRE account? ›
1. Quantum of transfer: The NRO to NRE transfer limit is capped at USD1 million per financial year. 2. Tax compliance: The amount to be transferred should be eligible for remittance and free from any tax liability.
Can I transfer money from NRE to USA? ›
The NRE funds can be repatriated only to customers' own/self-account abroad. The beneficiary's name should be same as per name of the account holder.
Can I hold USD in my NRE account? ›
An NRE Account or Non-Resident External Account offers you this facility. Here, your money is converted into Indian Rupee or INR at the time of deposit. This means that you can deposit money in any foreign denomination, e.g. US Dollar and withdraw it in Indian Rupees.
What is the limit of money transfer from USA to India? ›
There is no IRS limit on sending money to India; however, if you exceed the lifetime gift tax exemption limit of $12.92 million, you will be liable for taxation.
Can someone transfer money to my NRI account? ›
The fastest and easiest way to do a transfer is through a transfer that deposits directly to the NRE bank account in India. You can do it through a wire transfer at your local bank overseas or quickly with a money transfer provider, either in person or online.
What is the maximum foreign transfer limit? ›
Transferring money to an international bank account
The Reserve Bank of India (RBI) allows Indian citizens to make international remittances of up to USD250,000 per financial year through the Liberalised Remittance Scheme.
