India is the world’s leading remittance recipient, with more than $12 billion sent from the US to India in 2019 alone. Knowing how much you’ll pay in tax and how the process works can give you peace of mind when sending money from the US to India.
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. If you’re planning on initiating a large transfer, consider using a limit-free provider such as Xe.
When you send money to any person abroad in India, the first $15,000 USD will be exempt from taxes by the IRS under the Gift Tax policy. This limit is charged on a per-person basis — if you would like to send $15,000 USD each to multiple persons, you will still be off the hook for any gift taxes.
If you do send more than the allotted $15,000 USD, all you need to do is to file an IRS Form 709 to disclose the gift. On top of the $15,000 annual exclusion, you get an $11.7 million lifetime exclusion in 2021. Should you be fortunate enough to have remitted over $11.7 million, you may then be liable for gift taxes at a rate anywhere from 17% to 40%.
Sending a lot of money out of the country? Know what the IRS expects of you.
There is no recipient tax on money being transferred from abroad to India when it’s being sent to blood relatives. In general, “blood relatives” — including spouses, children and grandchildren, siblings or in-laws — don’t pay tax on any amount you send.
However, if you’re sending more than about $700 to someone in India who isn’t a blood relative, they’ll need to report it on their taxes. No matter how you send the money, your recipient could be on the hook for a gift tax if they aren’t a blood relative, as regulated by the Indian Income Tax Act.
In February 2020, the Indian government introduced a new law that would put in new limits for remittances out of India.
Because of this law, resident individuals in India can only remit a maximum of USD $250,000 overseas each year. Additionally, any amount remitted above ₹700,000, which translates to roughly 9,500 USD, will be taxed at 5%.
Finder data suggests that men aged 25-34 are most likely to be researching this topic.
| Response | Male (%) | Female (%) |
|---|---|---|
| 65+ | 2.17% | 1.05% |
| 55-64 | 3.70% | 1.77% |
| 45-54 | 8.21% | 3.34% |
| 35-44 | 20.14% | 8.07% |
| 25-34 | 21.19% | 9.08% |
| 18-24 | 14.65% | 6.63% |
If you don’t report a transfer on your taxes in India, you could be charged a 10%, 50% or 200% penalty on the taxes owed, depending on whether it was considered intentional or not.
With so much attention on money entering and leaving India, if you fail to report large sums, don’t know you have to report them or don’t report them correctly, it will likely be discovered. Make sure to declare any large remittance as income on your general tax return with the Indian Income Tax Department.
To avoid the severe penalties that could come with a failure to report large sums of money into the country, speak with a professional to guarantee that everything complies with the laws of both the US and India.
Your recipient can pick up the cash in person or have the money deposited directly into their bank account or mobile wallet. Not every provider will offer all three options, so check before initiating a transfer.
In general, your recipient will provide ID or a confirmation number for the transaction to pick up the money in cash.
Whether products shown are available to you is subject to individual provider sole approval and discretion in accordance with the eligibility criteria and T&Cs on the provider website.
Are you visiting from outside the US?
You’ll likely need to file with the IRS, and your recipient may have to pay a gift tax.
Your recipient may need to pay taxes on a large remittance, and you’ll likely need to report it.
Your recipient won’t be on the hook for any taxes, but there may be limits on how much you can send.
Protect yourself and save time with this tax and documentation guide on sending large amounts of money to Canada.
Transferring large amounts of money to France? Learn how to protect yourself from tax issues and potential penalties.
Looking to transfer a lot of money to Brazil? Protect yourself from penalties and save time with this tax and documentation guide.
Do you need to send a large amount of money to Mexico? Learn about related laws and required documentation.
Need to send a lot of money to China? Protect yourself from penalties and save time with this tax and documentation guide.
Are you due to receive a large sum of money from another country? Familiarize yourself with laws and required documentation.
How much money can my friend send from Syria to india
Hi Karan,
Thank you for leaving a question.
There is no limit of sending money to India, provided you pay the required taxes. No limit on daily and monthly transaction. But, there is a limit of $14,000 US dollar equivalent per person per year for tax free transactions. Any amount sent above $14,000 US dollar equivalent per person per year, the sender is responsible for paying the taxes. Hope this helps!
Cheers,
Reggie
If I receive 5 million dollars of USA should I pay tax ND wanna suffer from for thar
Hi Deva,
Thanks for getting in touch with finder. I hope all is well with you. :)
Whether you will have to pay taxes or not depends on different circumstances. Like what our page mentioned, if the money was sent to you by a blood relative or it is an inheritance or gift, then it is most likely you don’t have to pay taxes.
However, if your recipient is not related to you, any amount over 50,000 rupees (about $750, depending on the exchange rate) that you send is taxable and must be declared as income.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
I received a transfer amount of 10000 GBP from my friend Yorkshire bank friend sender me a receipt copy to whatsapp now delhi branch bankers asking for 35000 rupees for transfer charges that I made a payment through net banking now they saying your transaction is in process and asking for anti terrorist certificate it costs 70000 rupees is it true or fraud plz suggest me sir
Hi Girish,
Thanks for getting in touch with finder. I hope all is well with you. :)
It is true that there are certain laws that apply when receiving a large amount of money. You may need to pay taxes for the money you have received. However, for other fees such as the things you mentioned, you need to verify that with your local government. Speak to a legal expert and see if these fees are really necessary or not.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
If anybody sent to me 2 thousand of dollar from America then how can I got that money in my account. Is there any process for transecton that money in my account. Plz help me mam
Hi Ashish!
Thanks for leaving a question on our page.
There are different ways to receive funds from the US. Depending on how the money was sent, you can either receive it directly into your bank account or pick up the money in person.
For money sent directly to your bank account, you don’t need to do anything as the money will automatically arrive in your account. Once the funds are deposited into your bank account you can withdraw the money from an ATM or by visiting your bank branch.
If the money is for cash pick-up, you need to visit the money transfer agent your sender from the US used to send money to India. The tracking or reference number will be required, the sender’s details, and the transfer amount. A government-issued photo ID is also required to pick up the money.
Hope this helps!
Nikki
WHAT TYPES OF RULES TO BE FOLLOWED TO TRANSFER AMOUNT FROM MY FIANCE FOREIGN (UK) ACCOUNT TO MY ACCOUNT WITHOUT ANY HURDLE ? IN CASE OF TRANSFERRING HUGE AMOUNT WHAT KIND OF ACCOUNT SHOULD HAVE IN INDIA ?
Hi Sunil,
Thanks for getting in touch with finder. I hope all is well with you. :)
I would assume that your fiance would be sending a large amount of money from UK to India. If this is the case, you need to check the regulation for each of the countries. Please be reminded that if your recipient is not related to you, any amount over 50,000 rupees (about $750, depending on the exchange rate) that you send is taxable and must be declared as income.
In terms of the account, you can use a bank account to receive money from your fiance. There are also some service providers that won’t need you to create an account when receiving money. All you need is to present a valid government ID.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua