Sending $10,000+ to India? What you need to know about tax laws.
Laws legal documents sending money to India

Laws and legal documents when transferring large sums of money into India

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Emigrating, funding a business or helping family abroad? Sending large sums into India can be tricky.

There’s a lot for you to consider when sending money to India. But you can’t avoid the laws and potential paperwork that go along with transferring large amounts of money.

How India regulates large remittances

India is the world’s leading remittance recipient, with more than $10 billion sent from the US to India in 2015 alone. Many providers in the US offer transfer services to India, but your recipient could be on the hook for a gift tax as regulated by the Indian Income Tax Act.

In general, if your recipient is a “blood relative” — including spouses, children and grand-children, siblings or in-laws — they do not pay tax on any amount that you send. Your recipient also won’t pay tax on any money sent as part of an inheritance or a wedding gift.

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.

As with all international money transfers, be wary of potential fraud and only send money to people you know. Using a reputable provider can safeguard you from potential scams.

What are the penalties for not filing a large remittance?

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 is above board and complies with the laws of both the US and India.

Do I have to report large transfers out of the US?

To be safe, yes. By law, banks report all cash transactions that exceed $10,000 — and any transaction of any amount that alerts their suspicions. Money transfer businesses, which often solely send money between countries, sometimes have reporting thresholds as low as $1,000.
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How will my recipient receive my remittance in India?

The process of receiving a money transfer in India will vary by provider and delivery method. In general, your recipient will provide ID or a confirmation number for the transaction to receive your funds.

If your recipient owns an account with an Indian bank or money transfer company, they may not need to provide this information each time you send money.
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Money transfer services with no maximum sending limit

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Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
AUD 250 2 days - - Pay $0 fee when you transfer more than $5000, regardless of whether you transfer online, over the phone or in branch. Go to site Show details
AUD 0 2 days USD 0.00 69.812 INR
349,058
Enjoy regular scheduled transfers, one off transfers and a range of currencies. Also enjoy your first transfer for free. Go to site Show details
AUD 50 2 days USD 5.00 69.847 INR
348,885
Transfer amounts as low as $50. No maximum transfer amount. No transfer fees if you transfer more than AU$10,000. Go to site Show details
AUD 3,000 1 day GBP 10.00 69.882 INR
349,409
FC Exchange will match any competitor's exchange rates. Conditions apply. No transfer fee when transferring more than £10,000 or equivalent. Send money in over 130 currencies. No maximum transfer amount. Go to site Show details
AUD 250 1 day USD 0.00 69.882 INR
349,409
$0 transfer fees for Finder customers. Transfer any amount from $250 upwards. $0 transfer fee on transfers over AU$10,000, $15 flat fee applies otherwise. 24-hour customer service available with a local support team. Go to site Show details
AUD 2,000 1 day USD 0.00 69.882 INR
349,409
Access live rates, currency converter and market updates via the WorldFirst Money Transfer mobile app. No transfer fees for personal or business customers. Go to site Show details
AUD 200 1 day USD 0.00 69.882 INR
349,409
TorFX guarantee to match any competitor's exchange rate for a transaction. Conditions apply.
Send money overseas in 45 currencies. Once registered, you'll be assigned an Account Manager who can provide support and guidance.
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14 Responses

  1. Default Gravatar
    DevaAugust 7, 2018

    If I receive 5 million dollars of USA should I pay tax ND wanna suffer from for thar

    • finder Customer Care
      JoshuaAugust 14, 2018Staff

      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

  2. Default Gravatar
    GirishJuly 23, 2018

    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

    • finder Customer Care
      JoshuaAugust 5, 2018Staff

      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

  3. Default Gravatar
    AshishJuly 14, 2018

    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

    • finder Customer Care
      nikkiangcoJuly 22, 2018Staff

      Hi Ashish!

      Thanks for leaving a question on our page.

      There are different ways to receive funds from the US and a lot of the providers can transfer the funds directly to your bank account. However, this option generally doesn’t offer the best exchange rates or lowest fees.

      You can check out this page on how to send money to India from the US.

      Hope this helps!

      Nikki

  4. Default Gravatar
    SUNILJuly 9, 2018

    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 ?

    • finder Customer Care
      JoshuaJuly 17, 2018Staff

      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

  5. Default Gravatar
    ramanMay 22, 2018

    Can I send huge amount lets say 40000 Canadian dollars from my Canadian account to my own Indian account? Will it cause Income Tax problem? I am paying taxes in Canada for the salary i get paid. please clarify.

    • finder Customer Care
      nikkiangcoMay 23, 2018Staff

      Hi Raman,

      Thanks for your message and for visiting finder – the leading comparison website & general information service built to give you advice in your buying decision needs. How are you doing today?

      Can I send huge amount lets say 40,000 Canadian dollars from my Canadian account to my own Indian account?

      – Yes, you can send 40,000 CAD to your Indian account. Just make sure to declare any large remittance as income on your general tax return with the Indian Income Tax Department.

      Will it cause Income Tax problem?

      – 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 is above board and complies with the laws of both the US and India.

      Hope this was helpful. Don’t hesitate to message us back if you have more questions.

      Cheers,
      Nikki

  6. Default Gravatar
    RamyaApril 30, 2018

    If we want to send 1 crore to my parents , do I need to pay tax in India for the transaction ?

    • finder Customer Care
      JhezelynMay 1, 2018Staff

      Hello Ramya,

      Thank you for your comment.

      As per the Income tax Act, if the source of income was outside India, and also received outside India, then no tax will be levied on the income earned outside India in India. However, foreign country would have charged you tax on the income earned in their country.

      Regards,
      Jhezelyn

  7. Default Gravatar
    ArjunApril 28, 2018

    If a sender send an amount more than 1 crore rupees from USA to India, is there any rules that first the receiver to pay the international money transfer charges before the receiver receive the money?

    • finder Customer Care
      JeniApril 28, 2018Staff

      Hi Arjun,

      Thank you for getting in touch with finder.

      As a friendly reminder, while we do not represent any company we feature on our pages, we can offer you general advice.

      Many providers in the US offer transfer services to India, but your recipient could be on the hook for a gift tax as regulated by the Indian Income Tax Act.

      In general, if your recipient is a “blood relative” — including spouses, children and grand-children, siblings or in-laws — they do not pay tax on any amount that you send. Your recipient also won’t pay tax on any money sent as part of an inheritance or a wedding gift.

      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.

      You may want to check out this link for more info on paying taxes for large money transfers.

      I hope this helps.

      Have a great day!

      Cheers,
      Jeni

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