How to Send Money from USA to India for Family Support
Complete guide to sending USD to INR for family support. Steps, costs, regulatory notes, and tips to get the best rate.
Sending money from the US to support family in India is a priority for many NRIs, and getting it right matters. This guide covers everything you need to know to transfer USD to INR securely, efficiently, and cost-effectively. We’ll walk you through key steps, common pitfalls, and important tax and regulatory considerations—so your loved ones receive the full support they need without delays or surprises.
This guide is for Indian professionals living in the US on work visas (H-1B, L-1, etc.) who regularly send money to support parents, siblings, or other family members in India.
Key Things to Know First
TCS Applies After ₹7,00,000
Once your total remittances to India exceed ₹7,00,000 in a financial year (Apr–Mar), 5% Tax Collected at Source (TCS) applies on the full amount of each subsequent transfer. Plan larger transfers carefully to manage cash flow.
Use Correct Account Type
Root supports transfers to NRO and regular savings/current accounts in India. NRE accounts are not yet supported—sending to an NRE account via Root may fail or be reversed.
Accurate IFSC Code Required
An incorrect IFSC code can delay your transfer by days or result in funds being returned. Confirm the 11-digit IFSC with your family and cross-check using your bank’s IFSC finder tool.
PAN May Be Needed for Large Transfers
Indian banks often require the recipient’s PAN for transfers over ₹50,000–₹1,00,000. Without it, processing may be delayed or rejected by the bank.
Step-by-Step Guide
Confirm Recipient’s Bank Details
Collect the full name, account number, and correct 11-digit IFSC code of the family member’s bank in India. Verify that it’s an NRO or savings/current account.
Log in to Your Root Account
Open the Root app or website and sign in to begin a new transfer. Root offers the interbank exchange rate with no hidden fees.
Enter Transfer Amount in USD
Input how much you’d like to send. The app will show the live USD to INR rate and the estimated INR amount your family will receive.
Select ‘Family Maintenance’ as Purpose
Choose 'Family Maintenance' or similar permissible purpose. This complies with FEMA regulations and avoids compliance flags.
Review & Confirm Transfer
Double-check all details including account number, IFSC, and amount. Once confirmed, the transfer initiates immediately.
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Get Started with RootRegulatory Notes
5% TCS on Remittances Over ₹7,00,000/year
Under Indian tax rules effective October 2023, 5% TCS is collected on the full amount of each remittance once your total outgoing transfers exceed ₹7,00,000 in a financial year. You may claim credit for TCS paid when filing Indian taxes if eligible.
FEMA Compliance Required
All remittances must comply with FEMA guidelines. Transfers for prohibited purposes like gambling, lottery, or investment in restricted sectors are not allowed and may be blocked.
Common Mistakes to Avoid
❌ Entering wrong IFSC code
Transfer gets delayed by 3–7 business days or returned entirely.
✅ Always cross-verify the IFSC using the recipient bank’s official IFSC lookup tool before sending.
❌ Sending to an NRE account via Root
Transaction may fail or funds could be reversed as Root does not yet support NRE accounts.
✅ Confirm the account is NRO or regular savings before initiating the transfer.
❌ Not accounting for TCS in large transfers
Unexpected 5% deduction reduces the received amount significantly on transfers over ₹7 lakh.
✅ Factor in TCS when planning large or multiple transfers—consider spreading across financial years if needed.
Frequently Asked Questions
How much TCS will I pay if I send $10,000 in one transfer after crossing ₹7,00,000?
If you've already exceeded ₹7,00,000 in a financial year, 5% TCS applies to the full amount. For $10,000 at CHECK_LIVE exchange rate, TCS would be approximately ₹37,500 (5% of ₹7,50,000).
Can I send more than $250,000 per year to family in India?
Yes, as an NRI sending money from the US, you are not subject to India’s LRS limit of $250,000. That limit applies only to Indian residents making outbound remittances.
How long does it take for family in India to receive the money?
Transfers via Root typically arrive in 1 business day, though some banks may take up to 2 days depending on internal processing.
Is there a minimum amount I can send?
Root allows transfers as low as $1, but for family support, most users send at least $200–$500 per transfer to make the exchange value meaningful.
Do I need to report remittances to the IRS?
No, personal gifts or family support under $17,000 per recipient per year do not need to be reported to the IRS under current US gift tax rules.