Sending Money to India as a US Citizen Holder
Guide for US Citizen holders sending USD to INR. Tax rules, transfer limits, documentation, and how Root works for your visa status.
As a US citizen—whether born or naturalized—you have full flexibility to send money from the USA to India without restrictions based on your immigration history. Your visa status does not impact your ability to transfer USD to INR, and no special documentation is required due to citizenship. This guide covers key considerations, regulatory requirements, and the simple steps to send money confidently to family or for personal use in India using Root.
As a US citizen, your previous visa status (such as H-1B, L-1, or F-1) has no bearing on your ability to send money to India. There are no government-imposed limits or restrictions on remittances based on citizenship or immigration history. You can transfer funds freely, subject only to standard compliance and reporting requirements for large transactions.
What You Need to Know
TCS Applies After ₹7,00,000
If the total remittances to India exceed ₹7,00,000 (approx. $8,400) in a financial year (April–March), 5% Tax Collected at Source (TCS) applies on the full amount. This is collected at the time of transfer and can be claimed as a credit when filing Indian taxes. Ensure the recipient has a PAN card to avoid higher TCS rates.
Recipient Bank Details Are Critical
Always confirm the correct IFSC code and beneficiary name matching the bank account. Errors in the IFSC code can lead to failed or misdirected transfers. Root supports transfers to NRO and regular savings/current accounts in India.
No LRS Limits Apply to You
The Liberalised Remittance Scheme (LRS) cap of USD 250,000 per year applies only to Indian residents. As a US citizen, you are not subject to LRS limits when sending money to India.
FEMA Prohibited Categories
Under India’s FEMA regulations, funds cannot be sent for restricted purposes like gambling, lottery, or real estate purchase by non-residents (unless under specific schemes). Ensure the purpose is compliant to avoid rejection.
How to Send — Step by Step
Create a Root Account
Download the Root app or visit the website and sign up using your US ID and contact details. No visa or immigration documents are needed—only standard identity verification.
Pro tip: Use your US passport or driver's license for fastest verification.
Enter Transfer Details
Select USD to INR, enter the amount, and provide the recipient's full name, Indian bank account number, and IFSC code. Confirm whether the account is an NRO or regular savings account.
Review Exchange Rate and Fees
Root displays the live interbank exchange rate and confirms zero fees. The total amount in INR and the breakdown—including any applicable TCS if over ₹7,00,000—is shown upfront.
Pro tip: Compare the rate with your bank to see the savings.
Verify Purpose of Remittance
Select a compliant purpose code (e.g., family maintenance, gift, or personal use). This is required for Indian regulatory reporting but does not affect processing for US citizens.
Pro tip: Avoid prohibited categories like lottery or crypto purchases.
Confirm and Send
Confirm the transfer using your preferred US payment method (bank transfer or debit card). Once approved, the funds are converted and sent to India.
Pro tip: Most transfers arrive within 1 business day.
Regulatory Notes
TCS at 5% for High-Value Transfers
Effective October 2023, 5% TCS is applied on remittances exceeding ₹7,00,000 in a financial year. This applies regardless of sender citizenship. The recipient must provide PAN to avoid TCS being charged at a higher rate (20%). This amount is not a tax but a prepayment that can be adjusted during Indian income tax filing.
NRO and Savings Accounts Supported
Root supports transfers to NRO and regular Indian savings or current accounts. NRE account support is coming soon. Always confirm the account type with your recipient to ensure correct routing and tax compliance in India.
No US Excise Tax on International Transfers
As of early 2026, the proposed 1% US excise tax on international wire transfers has not been enacted. US citizens sending money to India are not currently subject to any federal excise tax on remittances.
Send Money to India as a US Citizen Holder
Root works for all visa statuses. Zero fees, interbank rate.
Get Started with RootFrequently Asked Questions
Does my US citizenship affect how much I can send to India?
No. As a US citizen, you can send any amount to India without legal limits. Indian remittance rules like LRS do not apply to you. Only standard compliance checks and TCS for large amounts apply.
Do I need to report my remittances to the IRS?
Generally, sending money to India is not a taxable event in the US. However, if you're sending over $100,000 to a foreign individual in a year, you may need to file Form 709 (gift tax return), though no tax is typically due due to lifetime exemption.
Will my old visa status (like H-1B or F-1) affect my transfers now?
No. Once you are a US citizen, your previous visa status has no impact on financial transactions, including international remittances. You transfer funds just like any other US citizen.
What happens if the recipient doesn’t have a PAN card?
If the recipient lacks a PAN, TCS may be collected at a higher rate of 20% instead of 5% for transfers exceeding ₹7,00,000. Always encourage the recipient to provide PAN for compliance and tax efficiency.
Are there any restrictions on how the recipient uses the money in India?
Yes, under FEMA, funds cannot be used for prohibited purposes like gambling, betting, or purchasing lottery tickets. Otherwise, the recipient can use the money for personal, family, or investment purposes freely.