Q. How much money can be sent?
A resident individual can remit up to $2.5 million in a financial year through multiple transactions to any permissible current or capital account transactions, or a combination of both. There is no restriction on the frequency of sending money abroad. However, NRIs with NRO accounts can remit $1 million in a financial year, while those with NRE and FCNR accounts have no limit.
Q. For what reasons can you send?
You can send money for private trips abroad (except Nepal, Bhutan); gift or donation; employment; migration; maintenance of close relatives; traveling for business, attending a conference or special training; for medical expenses or examination, or to accompany the patient for medical treatment/examination; study abroad; or any other current account transaction not covered under the definition of current account in FEMA 1999.
Q.is foreign remittance tax,
From 1st October 2020, do Clear at Source (TCS) has been implemented on outward foreign remittances. If you are sending more than Rs 7 lakh, then 5%
Will apply. If you are repaying loan for overseas education, 0.5% TCS will be levied on the amount above Rs.7 lakh. If you fail to furnish PAN details, you will have to pay 10% and 5% tax respectively for the above categories. In the case of an NRI, a overloadAnd the Education and Health Cess will also be applicable.
> How much will it cost?
Depending on whether you choose the online or offline option, banks or money transfer companies, the cost will vary. Fees will typically include transfer fees, intermediary or correspondent bank fees, currency spread (exchange rates), courier charges, and GST. For online transfers, both banks and transfer agents have flat fees along with taxes and a percentage of the amount to be remitted.
Q. What documents are required?
You will need to submit Permanent Account Number (PAN), proof of identity and address and A2 cum LRS declaration form. Depending on the purpose of the remittance, you may also be required to provide specific documents, such as a passport, visa, ticket, invoice from a travel agency, or as specified by the bank or transfer agency. If you are remitting money to a non-resident person or a foreign company, you will also need to submit Form 15CA and in some cases Form 15CB, which is a certificate from a Chartered Accountant confirming the tax paid.
Q How long will it take?
It can be transferred within 24 hours or can take up to 30 days, depending on your sending option. Q How can money be remitted? You can send money either online or offline (demand draft), both services are usually offered by banks and private money transfer/exchange companies.
- Money transfer or online wire transfer through exchange companies
This is the fastest and cheapest option as compared to transfer through banks. These companies also remit money through their network of banks and you can use their site or app to complete the process digitally. Some of these include BookMyForex, Wise, Western Union, ExTravelMoney, etc. If you want to send $1,000 to the US, you’ll usually pay Rs.750-2,500*.
- Online Wire Transfer Through Banks
This is a more expensive, though reliable, way to send money overseas. You can initiate the transfer through your bank through net banking or by visiting the bank branch. To send $1,000 to the US, you’ll easily end up paying around Rs 2,000-4,000*.
- Bank Demand Draft / Cashier’s Check
Foreign currency demand drafts are delivered physically through courier or mail. Despite the low cost and high reliability, it is not the preferred option because it takes a long time. If time isn’t important to you, this can be a good way to transfer money.
- international money order
An older alternative, India Post and very few banks offer this service.
*Costs are indicative and may vary.