Sending Money to India as a Accountant
Guide for accountants in the US sending USD to India. Visa rules, tax implications, limits, and how Root works for your situation.
As an accountant in the US, you likely earn a stable income and may be on an H-1B, L-1, or other visa status while managing financial compliance for others — which means you understand the importance of precision in cross-border transfers. Many accounting professionals send money to India regularly to support family, manage investments, or repay education loans. This guide covers key considerations like TCS, compliance, and optimal transfer strategies tailored to your financial profile and professional context.
Accountants typically send between $1,500 and $5,000 monthly, often to parents, siblings, or for NRI property payments. Transfers are frequent and predictable, aligned with pay cycles. Due to their financial expertise, they prioritize transparency in fees, compliance with tax laws, and audit-ready records.
What You Need to Know
TCS Applies Above ₹7,00,000 Annually
If your total remittances to India exceed ₹7,00,000 (~$8,400) in a financial year (April–March), 5% Tax Collected at Source (TCS) applies on the full amount. This is not a tax but a refundable compliance measure — file Form 26QB or claim credit in India. Accountants should plan for this when making larger transfers.
No Visa-Based Restrictions on Sending Money
Your ability to send money to India is not limited by visa type (H-1B, L-1, etc.) under US law. As long as funds are from legal income and reported on your W-2 or 1099, remittances are permitted. Maintain documentation to demonstrate source of funds if questioned.
US Income Taxes vs. Indian TCS Are Separate
Sending money to India does not trigger US federal income tax — gifts or transfers aren’t taxable to the sender. However, Indian banks may require recipient PAN for large deposits to comply with Indian tax rules. Accountants should advise recipients accordingly.
Root Supports NRO and Savings Accounts
You can send directly to NRO or regular savings/current accounts in India. NRE account support is coming soon. Confirm with the recipient which account they’re using, as NRE funds are repatriable and tax-free in India, while NRO is not.
How to Send — Step by Step
Verify Your Identity on Root
Upload a copy of your passport and US visa or employment-based status document (e.g., H-1B approval notice). This is a one-time KYC step required for compliance with AML and FEMA-linked procedures.
Pro tip: Use clear, well-lit images to avoid processing delays.
Link Your US Bank Account
Connect your US checking account via secure Plaid integration or manual routing details. Accountants often use direct deposit from employer, so ensure the name matches exactly for faster verification.
Enter Recipient’s India Bank Details
Provide recipient’s full name, bank name, IFSC code, and account number. Double-check the IFSC — errors here cause failed transfers. For NRO accounts, confirm with the recipient that large deposits won’t breach local reporting thresholds.
Pro tip: Save multiple beneficiaries if sending to family and investment accounts separately.
Initiate Transfer and Monitor TCS Threshold
Enter the USD amount, review the live INR equivalent, and confirm. Root locks in the interbank rate. Track your annual total to anticipate 5% TCS if exceeding ₹7,00,000.
Pro tip: Schedule recurring transfers to align with your pay cycle for consistency.
File for TCS Refund if Applicable
If TCS was collected, the recipient can claim a refund in India by filing appropriate income tax returns or Form 26QB, provided the funds were from legitimate sources and not taxable income.
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Get StartedFrequently Asked Questions
Do I need to report money I send to India on my US tax return?
No — sending money to India is not a taxable event in the US. However, if you gift over $17,000 (2024 limit) to a single recipient, you may need to file Form 709. Most personal family support falls under annual exclusion.
How does 5% TCS affect my remittances if I'm sending as an accountant on H-1B?
TCS applies at 5% on total remittances exceeding ₹7,00,000 (~$8,400) in a financial year. Since accountants often send steadily, you may hit this threshold. The TCS is refundable via Indian tax filing, but plan cash flow accordingly.
Can my employer restrict me from sending money to India?
No — your employer cannot legally stop you from sending money earned through your job. However, ensure your income is fully reported on W-2 or 1099. Your remittance rights are protected under US financial freedom laws.
What exchange rate will I get when sending USD to INR?
Root offers the interbank exchange rate with zero markups — the same rate used by banks — and displays the live rate before you confirm. This ensures maximum INR received, critical for precise financial planning.
Is there a limit to how much I can send to India per month?
There is no US or RBI limit on how much an NRI can send to India. However, Indian banks may flag repetitive large deposits for verification. For transfers above ₹7,00,000 annually, 5% TCS applies, but the full amount still arrives.