As an NRI, there are various reasons for which you might want to send money to India. Whether you want to supplement your family’s needs or need to set aside some money in India for future investment purposes. Whatever may be the reason, today you can transfer money from abroad to India quite easily using various methods – online wire transfers, third party agencies, money orders, or cash transfer, etc. However, before you send that money to India, there are a few things that you need to consider to make the best decision that doesn’t break your bank and ensures that you save up on your time and effort, too.
Here’s everything you should know before remitting money to India.
Money transfer limit for NRIs
Legally speaking, an NRI can remit up to $1 million per financial year. However, there is no limit on the remittance of interest earned after the taxes have been paid.
Taxation
When you transfer money to India, there can also be tax consequences. Let us say if you are sending money to a relative related to you by blood, in this case, the money received will not be taxed. This spectrum includes spouse, children, parents, or grandparents. Also, if you are sending money as a wedding gift or part of an inheritance, it will not be taxed. However, they will face taxes if they invest the received amount in an investment scheme. Furthermore, if you transfer the money to someone not related to you by blood, let’s say to a friend, then they will have to pay tax on the additional income. Also, there is no limit to the amount that you can transfer to a loved one in India, but it also depends from country to country. For instance, an online money transfer by an NRI from the US, if the amount crosses $11.7 million in a financial year, it will attract taxes.
Exchange rates and conversion charges
The amount that you transfer in foreign currency and the amount that is received by the receiver in rupees is a direct function of the exchange rate that you get. So, inquiring about the exchange rate beforehand is important. Also, when converting money from foreign currency to rupees, you will be charged some conversion fees from your bank or the transfer agency.
So, make sure to explore your options and see which bank or agency provides you with the best deal on the exchange rate and conversion charges.
Transaction speed and additional charges
Before sending money to India, inquire with the sending agency or bank how much time they usually take to process international transactions. With SWIFT or NRI money transfer, you can be sure that your money is safe and secure, and that the entire process is transparent. SWIFT is a globally accepted remittance mechanism, so ensure that your bank is a part of it. If you require the amount to be sent on an urgent basis, try to look for the bank which takes the least amount of time processing international transfers. With third party transfers, you can send money swiftly, but the processing fee may be high and a cap on the maximum amount you can transfer in a day. With cash transfers, different airlines have a different maximum limit of cash that one can carry. So, from a transparency, safety, and reliability perspective, the best option is online wire transfers if you want to send money to your loved ones in India on a regular basis. With SWIFT transfers, your family members can receive the funds in Indian currency in a matter of a few hours.
Last words
So, keep these things in mind when you remit money to India the next time. If you are looking for a fast and secure way of transferring money to India, you can do so with Indus Fast Remit. It is super simple and you can transfer money with the Indus Fast Remit in just a couple of easy steps. Simply sign up and enter the amount of money and beneficiary details. To sign up today, click here.
Sign in to leave a comment.