Complete Guide to Sending Money Abroad from India (2026)
Sending money from India to another country involves navigating the RBI's Liberalised Remittance Scheme, understanding Tax Collected at Source (TCS), preparing proper documentation, and choosing the right transfer service. This guide covers everything you need to know.
Step 1: Understand the LRS Framework
Every outward remittance from India by a resident individual must comply with the Liberalised Remittance Scheme (LRS), introduced by the RBI in 2004. The LRS permits resident Indians to remit up to USD 250,000 per financial year (April 1 to March 31) for a wide range of permitted purposes without requiring special RBI approval.
💡 The USD 250,000 limit is cumulative per individual per year. Joint families cannot combine limits — each family member has their own individual limit.
Step 2: Know Your TCS Obligations
Tax Collected at Source (TCS) is collected by your bank at the time of the remittance and credited to your PAN. Key rates (effective from October 2023):
| Transaction Type | TCS Rate | Threshold |
|---|
| Education remittance (via education loan) | 0.5% | Above ₹7 lakh/year |
| Education (own funds) or Medical | 5% | Above ₹7 lakh/year |
| Overseas tour packages | 5% | No threshold (from ₹1) |
| All other LRS purposes | 20% | Above ₹7 lakh/year |
TCS is not an additional cost if you file your ITR — it is fully adjustable as a tax credit.
Step 3: Gather Your Documents
- PAN Card — mandatory for all LRS transactions
- Valid photo ID — Aadhaar card, Passport, or Voter ID
- Form A2 — Declaration of purpose under FEMA, provided by your bank
- Purpose-specific documents:
- Education: University offer letter + fee demand note
- Travel: Confirmed air tickets + hotel bookings
- Investment: Broker account statements (for overseas investment)
- Family maintenance: Proof of relationship
- Recipient bank details: Account number, bank name, SWIFT code, routing number (for US), IBAN (for Europe/UAE/UK)
Step 4: Choose Your Transfer Service
| Service | Best For | Rate Quality |
|---|
| Wise India | Tech-savvy users, frequent transfers | Excellent (near mid-market) |
| Instarem | Competitive rates, good app | Very good |
| BookMyForex | Doorstep forex delivery, rate lock | Very good |
| Thomas Cook India | Branch network, trusted brand | Good |
| HDFC Forex / ICICI Money2World | Existing bank customers | Good (slightly higher margin) |
| SBI / Bank of Baroda | Trusted, large amounts | Moderate |
Step 5: Initiate and Track Your Transfer
- Log into your chosen platform (online or branch) with your documents ready
- Enter recipient details carefully — double-check SWIFT codes and account numbers
- Confirm the rate, fee, and TCS amount before approving
- Keep your transaction reference number for tracking
- Confirm receipt with the beneficiary, typically within 1–5 business days
- Save all receipts for your ITR filing to claim TCS credit
Common Mistakes to Avoid
- Sending just before the LRS year-end (March 31) without tracking cumulative amounts — you may unknowingly exceed your annual limit
- Using incorrect SWIFT codes — can cause transfers to get stuck in correspondent banks
- Not claiming TCS in your ITR — many senders lose this refund by forgetting to file
- Using airport forex counters for large amounts — rates are typically 4–8% worse than market
- Sending to an unverified or incorrect account due to social engineering fraud — always verify recipient details independently
Disclaimer: LRS rules, TCS rates, and compliance requirements are subject to change. This guide is for educational reference only. Always verify current requirements with your bank or a qualified financial professional.