Send Money from India to USA – INR to USD Remittance Guide
Sending money from India to the United States has become increasingly common — for student education fees, family maintenance abroad, overseas investments, and professional payments. However, outward remittances from India are more regulated than inward transfers, and understanding the rules can save you both money and compliance headaches.
The Liberalised Remittance Scheme (LRS) – Complete Overview
The Liberalised Remittance Scheme (LRS) is the primary framework under which Indian residents can remit money abroad. Introduced by the Reserve Bank of India in 2004, it allows individuals to send up to USD 250,000 per financial year (April to March) for a wide range of permitted purposes.
Permitted Purposes Under LRS
- Education fees at foreign universities and living expenses
- International travel expenses
- Maintenance of close relatives living abroad
- Medical treatment abroad
- Gifts and donations
- Purchase of property outside India
- Investment in foreign securities (stocks, bonds, mutual funds)
- Emigration expenses
What Is NOT Allowed Under LRS
- Remittances directly or indirectly to countries identified as non-cooperative by the Financial Action Task Force (FATF)
- Purchase of lottery tickets, banned magazines, or betting purposes
- Trading in foreign exchange abroad
- Capital account transactions not specifically permitted under LRS
Tax Collected at Source (TCS) on LRS Remittances
Effective October 2023, TCS rules for LRS remittances were updated. Key rates:
| Purpose | TCS Rate | Threshold |
|---|
| Education (funded by loan) | 0.5% | Above ₹7 lakh/year |
| Education (own funds) / Medical | 5% | Above ₹7 lakh/year |
| All other purposes (travel, gifts, investment, etc.) | 20% | Above ₹7 lakh/year |
⚠️ Important: TCS is not a final tax. It is collected by your bank and credited to your PAN. You can claim it as a credit when filing your annual income tax return (ITR). Always keep bank receipts of TCS deducted. Consult a chartered accountant for your specific situation.
Best Services for INR to USD from India
| Service | Type | Exchange Rate | Transfer Time |
|---|
| Wise India | Digital | Near mid-market | Same day |
| Instarem | Digital | Competitive | 1–2 days |
| BookMyForex | Online + doorstep | Competitive | 1–2 days |
| Thomas Cook India | Offline + online | Standard | 1–3 days |
| HDFC / ICICI / SBI | Bank SWIFT | Bank rate (higher margin) | 2–4 days |
Documentation Required
- PAN Card — mandatory for all LRS transactions
- Valid ID proof — Aadhaar, Passport, or Voter ID
- Form A2 — Foreign exchange declaration form (provided by your bank)
- Purpose-specific documents — e.g., university offer letter and fee demand note for education; air tickets and hotel bookings for travel; property documents for overseas property purchase
- Recipient bank details — account number, routing number (for US banks), SWIFT code
Step-by-Step: Sending Money from India to the US
- Decide on the transfer purpose and ensure it is permitted under LRS
- Gather required documents based on your purpose
- Compare rates and fees from at least two providers (bank + one digital service)
- Initiate the transfer through your chosen provider, providing recipient bank details accurately
- Complete KYC verification if required by the provider
- Confirm receipt with the beneficiary after the transfer is completed
- Retain all receipts for your ITR filing to claim TCS credit
Disclaimer: LRS limits, TCS rates, and regulations are subject to change. This guide is for educational reference only. Always verify current rules with your bank or a qualified financial advisor before initiating any transfer.