How to Send Money from USA to India for Property
Complete guide to sending USD to INR for property. Steps, costs, regulatory notes, and tips to get the best rate.
Sending money from the USA to India for property transactions—whether it's a real estate purchase, down payment, or rent—requires careful planning to ensure compliance, avoid delays, and maximize value. As an NRI, you need clarity on tax implications, bank requirements, and secure transfer methods. This guide covers key steps, regulatory rules like TCS, and practical tips for seamless property-related remittances to India.
This guide is for Indian nationals living in the USA who are sending money to India to buy property, make down payments, or pay rent. You need reliable, compliant, and cost-effective transfers while staying informed about India’s evolving tax and forex rules.
Key Things to Know First
TCS Applies on Large Transfers
A 5% Tax Collected at Source (TCS) is applied by Indian banks or intermediaries on cumulative remittances exceeding ₹7,00,000 (~$8,400) in a financial year under LRS. This is not a fee but a pre-paid tax creditable against your income tax liability in India.
Recipient Bank Details Must Be Accurate
Ensure the recipient’s full name, IFSC code, and account number match bank records exactly. Errors in the 11-digit IFSC or account type (NRO vs savings) can delay or reject the transfer.
Purpose Code Compliance
When declaring the transfer purpose, use valid FEMA-compliant codes such as 'PDCN' (Purchase of property) or 'RETN' (Rental payment). Misrepresentation may lead to scrutiny or rejection.
NRO Accounts Are Supported
Root supports transfers to NRO and regular savings/current accounts in India. NRE account support is not yet live—do not attempt to send to NRE accounts via Root at this time.
Step-by-Step Guide
Confirm Transfer Purpose and Amount
Decide whether the transfer is for property purchase, down payment, or rent. Break large amounts into smaller transfers if managing TCS liability, but note TCS applies on cumulative total per financial year.
Gather Recipient’s Bank Details
Collect the recipient’s full legal name, 11-digit IFSC code, account number, and bank branch name. For property purchases, confirm if the seller’s bank requires additional KYC or PAN for transactions over ₹50,000.
Select a Transfer Service with Best USD to INR Rate
Compare services offering interbank exchange rates with no hidden fees. Services like Root pass on real-time mid-market rates, saving over $2,000 on a $50,000 transfer compared to traditional banks.
Enter Transfer Details and Declare Purpose
Input the amount in USD, select 'Property Purchase', 'Down Payment', or 'Rent' as the purpose, and enter recipient bank details. Double-check all fields before submission.
Monitor Transfer and Notify Recipient
Track the transfer in the app. Once sent, inform the recipient to expect INR credit within 1–2 business days. They should watch for TCS deductions if total remittances exceed ₹7,00,000 in the financial year.
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Get Started with RootRegulatory Notes
TCS at 5% on High-Value Outflows
Indian tax law mandates 5% TCS on all remittances via LRS exceeding ₹7,00,000 in a financial year (Apr–Mar). This applies regardless of the purpose—property purchase, rent, or maintenance. The tax is refundable or adjustable against annual income tax liability when filing ITR in India.
FEMA Compliance Required
Under FEMA, remittances for property are allowed only for bonafide purposes. Funds cannot be used for prohibited activities like gambling or real estate speculation by non-residents in restricted sectors. Always maintain documentation for cross-border property transactions.
No LRS Limit on NRI Outflows
The $250,000 annual LRS cap applies to Indian residents, not NRIs sending money to India. As an NRI, you are not restricted by LRS when transferring funds earned abroad into India for property or other purposes.
Common Mistakes to Avoid
❌ Entering incorrect IFSC code or using an NRE account without confirmation
Transfer delays or rejections, especially if sending to an unsupported NRE account via services not yet offering NRE support
✅ Always validate the IFSC using the bank’s official website and confirm account type. Currently, use NRO or savings accounts only with Root
❌ Failing to account for 5% TCS on large transfers
Recipient receives less than expected, leading to confusion or shortfall in property down payment
✅ Factor in 5% TCS for annual remittances over ₹7,00,000. For a $10,000 transfer (~₹8.4L), expect up to ₹42,000 TCS collected at source
❌ Declaring incorrect purpose or omitting details
Bank may hold the transaction for verification, delaying credit by days
✅ Use accurate, FEMA-compliant purpose codes like 'PDCN' for property purchase and provide supporting documents if requested
Frequently Asked Questions
How much TCS will I pay when sending $15,000 to India for a property down payment?
If this is your first transfer and total remittances exceed ₹7,00,000 (~$8,400) in the financial year, 5% TCS applies on the full amount. For $15,000 (~₹12.6L), TCS would be approximately ₹63,000. This is a tax deposit, not a fee, and is adjustable against your Indian tax liability.
Can I send money to an NRE account using Root for property payments?
No. Root currently supports NRO and regular savings or current accounts in India. NRE account support is planned but not yet available. Do not attempt to send to an NRE account via Root at this time.
What is the best way to send $50,000 for a real estate purchase in India?
Use a service like Root that offers the interbank exchange rate and no fees. On a $50,000 transfer, this can save over ₹1.75 lakh compared to traditional banks. Splitting the transfer is optional but won’t reduce TCS, which applies on cumulative annual totals over ₹7,00,000.
Does the recipient need a PAN card for large property-related transfers?
Yes. Indian banks often require the recipient’s PAN for transactions above ₹50,000, especially for property purchases, to comply with AML and income tax rules. Ensure the recipient provides PAN to their bank to avoid processing delays.
How long does it take for funds to reflect in the Indian bank account?
With Root, USD to INR transfers typically credit the recipient’s account within 1–2 business days after confirmation. Transfers initiated late on Friday may arrive on Tuesday due to weekend banking closures in India.