Send Money Home

While transferring money from the US to India, you can either use locked-in exchange rates or indicative exchange rates. The only difference between these exchange rates is that you will know the exact amount of money that will be received by the recipient when you send money, with locked-in rates. On the other hand with indicative rates, you are not aware about it, as the exchange rate will be determined at the time of money transfer based on the Foreign-Exchange. For example: If exchange rate on the day of transferring money is 55 rupees for 1USD, your recipient will receive an exact amount of 5500 INR, with locked-in rates. But, if you use indicative rates, the exchange rate is determined at the time of money transferred, as bank may not send money the same day you did the transaction. To learn more about their differences, visit Locked-in Exchange Rates Vs. Indicative Exchange Rates

Sending money from the US- Since 2013, US citizens sending money overseas are supposed to pay the tax on the entire amount, if it exceeds $14,000 per person, in a year. In case you are married, even your spouse can participate in sending money as a gift. So, you can potentially send $28,000. The tax would be applicable on the entire amount and not the amount that it exceeds. The person who is gifting has to pay the tax. You can also divide the amount and send it to number of people to avoid taxation. Say you sent $40,000 to 4 different person, you have given a $10,000 to each, and as per the law, its under $14,000 per year. You are not liable to pay tax on the amount now as the number is below $14,000.   Receiving money in India - As per current tax laws, if an individual receives cash or non-cash gifts from persons other than blood relatives* in excess of Rs. 50,000 in a year, the whole of such gift received will be treated as the individual's income. *A close or blood relative would include any of the following: Spouse of the individual Brother or sister of the individual Brother or sister of the spouse of the individual Brother or sister of either of the parents of the individual Any lineal ascendant or descendant of the individuals Any lineal ascendant or descendant of spouse of the individuals   Learn more at Tax Implications When Making an International Money Transfer Note:  The information presented here is generic and may not be accurate. Please consult your CPA, tax expert or tax attorney for specific tax advice and inquiries. Visit  IRS Website  for US tax information.

If you make any transaction over $10,000, you must report it to the Internal Revenue System (IRS) whether you are making a single transaction or a combination of transactions. Fill the Form 3520, which is just an informational form. Trying to evade the IRS by consistently making a series of transactions less than $10,000 “structurally” can be considered “felony”.   Note:  The information presented here is generic and may not be accurate. Please consult your CPA, tax expert or tax attorney for specific tax advice and inquiries. Visit  IRS Website  for US tax information.

IBAN stands for International Bank Account Number, is helpful in processing automatic cross border transactions by identifying international bank accounts. It reduces risk of error in transaction and even makes it fast, safe and cheap. At present, Banks in America do not use IBAN number for US accounts. It comprise of maximum of 27 alphanumeric characters within Europe and 34 characters outside Europe. Its present on your paper Bank statement.  

There is absolutely no limit of sending money to India, provided you pay the required taxes. No limit on daily and monthly transaction. only money sending have limit for sending amount for individual. There is no limit on sending money from USA to India. But, there is a limit of US $14,000 per person per year for tax free transactions. Any amount sent above US $14,000 per person per year, the sender is responsible for paying the taxes.

Swift Code is used to identify  banks around the world. It is an interchangeable term for  BIC. It stands for Bank Identification Code which is used by swift system to identify specific bank & has 8 or 11 digits. Some banks, investment managers & dealers need swift code to make international wire transfer.   A BIC/SWIFT code is used to identify individual banks around the world. BIC and SWIFT code are interchangeable terms meaning the same thing. BIC stands for 'Bank Identification Code' and is used by the SWIFT system to identify specific banks worldwide A BIC has eight or 11 digits, depending on the bank in question.

An Intermediate Bank, also known as 'Corresponding Bank', is the one that acts between the originator’s bank and beneficiary’s bank. This bank accepts money from the original bank before crediting it to the beneficiary, who will receive it. Its role is to assist the transaction not to keep the cash. It assists original banks that are small and comes into play when the currency of the country where recipient is located is not the native country. For example: If you send money from US to India, corresponding bank will participate in transferring INR in the beneficiary’s bank, for which it which charge some fees. This is the reason why we find a difference in the amount of money received, which is less the amount of money transferred. You can use banks that make direct transfer, to avoid additional charges caused by intermediate banks. You may even pay the extra fees for it.

No, any amount of money transferred to your NRE account in dollars is not taxable. There is no tax in India on the interest on NRE account. It may be taxable in case you qualify to be a resident in India, no matter you earned money in India or outside India. You will also be subjected to tax, if you receive income in India, even if you qualify to be a non-resident.   Note:  The information presented here is generic and may not be accurate. Please consult your CPA, tax expert or tax attorney for specific tax advice and inquiries. Visit  IRS Website  for US tax information.

The gift received as inherited property is not taxable. But, you must report it with IRS by filing the Form 3520, if the gift received exceeds $100,000 for the year. This is not subjected to any tax but is just an informational form.   Note:  The information presented here is generic and may not be accurate. Please consult your CPA, tax expert or tax attorney for specific tax advice and inquiries. Visit  IRS Website  for US tax information.

Automated Clearing House (ACH) is an electronic network for financial transaction run by the National Automated Clearing House Association, between banks & unions in the United States. ACH processes all kinds of fund transfer - credit and debit transactions, including direct deposit of payments and monthly debits for routine payments. Remmitance Providers and Banks use customer's account number and routing number to withdraw money via ACH online rather than via credit or debit cards.  

A Wire Transfer is an electronic transfer of money from one entity to another across the financial network. It is a fast & secure transfer of fund from one bank or credit union account to another. It allows people to easily transfer money around the globe in different geographical locations, while maintaining efficiency. With a wire transfer, you can transfer huge sum of money as no actual cash is moved. Banks will collect a fee for providing service based on the size of transfer being done.

A remittance transfer service provider is an authorized entity that can electronically transfers money for consumers and businesses in foreign countries. Remittance transfer companies include banks, credit unions, Foreign Exchange Companies, money transmitters and many other types of financial service companies.

An international money transfer is a way to send money overseas from your bank account to another bank account. Typically, when sending money internationally, there is also a currency exchange.