Sending Money to India for New Year
How to send money to family in India for New Year. Timing tips, best rates, and how Root gets your transfer there on time.
As the New Year approaches, many NRIs in the USA look forward to sharing joy with family back home in India through thoughtful financial gifts. Sending money for New Year celebrations helps loved ones enjoy the festivities with added comfort and cheer. This guide covers everything you need to know to send money securely and on time, including key deadlines, tax considerations like TCS, and how to avoid common mistakes. Make this New Year memorable with a timely and heartfelt gift from afar.
New Year is celebrated across India on January 1st, often marked by family gatherings, festive meals, and small gifts. While Diwali and regional festivals hold deeper cultural significance, many Indian households still welcome the New Year with hope and celebration. NRIs send money during this time as a gesture of love, helping family members buy new clothes, enjoy special dinners, or simply feel supported at the start of a fresh year.
Tips for Sending on Time
Send Early to Ensure On-Time Delivery
Initiate your transfer by December 23rd to ensure funds arrive before January 1st, accounting for bank processing times and potential year-end volume delays.
Check IFSC Code and Account Details
Even a small error in the recipient’s IFSC code can delay or block your transfer. Confirm the 11-digit code and account number with your family before sending.
Factor in TCS for Transfers Over ₹7,00,000
If this is your first large transfer of the financial year, note that 5% TCS applies on cumulative remittances exceeding ₹7,00,000. This does not reduce your gift — it's a tax deposit you may claim back during filing.
Consider Splitting Large Transfers
To manage TCS impact, some NRIs choose to split amounts across multiple transfers or use different family members’ accounts, staying mindful of FEMA compliance.
How to Send — Step by Step
Download the Root App and Verify Your Identity
Create your account using your U.S. ID and SSN. Complete the quick verification process to enable international transfers.
Pro tip: Verification usually takes under 24 hours — start now to be ready for year-end sending.
Enter Recipient’s Bank Details in India
Add your family member’s full name, bank account number, and correct IFSC code. Root supports NRO and regular savings/current accounts.
Pro tip: Double-check the IFSC code using your recipient’s bank website or a trusted IFSC lookup tool.
Choose Amount and Lock Your Exchange Rate
Enter how much you’d like to send in INR or USD. Root displays the live USD to INR rate with zero hidden fees.
Pro tip: Rates fluctuate — consider setting a rate alert if you’re waiting for a favorable moment to send.
Review TCS and Confirm Transfer
If your transfer contributes to remittances over ₹7,00,000 in the financial year, Root will notify you of applicable TCS. Confirm the details and approve the send.
Pro tip: TCS is not a fee — it's a tax deposit credited against your tax liability when you file in India.
Track Delivery and Notify Your Family
Funds are typically delivered in 1-4 business days. You’ll receive a notification when the money arrives in your recipient’s account.
Pro tip: Let your family know to expect the transfer and confirm receipt directly with their bank if needed.
Make New Year Special for Your Family in India
Send money with Root — zero fees, delivered in 1-4 business days.
Send for New YearFrequently Asked Questions
Can I send a New Year gift to my parents in India using Root?
Yes! Millions of NRIs use Root to send money to family in India for occasions like New Year. Just set up your recipient’s bank details and send with zero fees.
Is there a deadline to send money for New Year 2025?
To ensure delivery by January 1st, start your transfer by December 23rd, 2024. Payments made after that may arrive in early January due to processing times.
Will my family pay tax on the money I send for New Year?
No. Gifts from immediate relatives abroad are not taxable in India. However, if your total remittances exceed ₹7,00,000 in the financial year, 5% TCS applies at source.
What bank details do I need to send money to India?
You’ll need your recipient’s full name, bank account number, and correct 11-digit IFSC code. Ensure these match exactly with their bank records to avoid failed transfers.
Does Root support NRE accounts for New Year transfers?
Root currently supports NRO and regular savings or current accounts in India. NRE account support is coming soon — check updates in the app.
Is there a US tax on sending money to India for New Year?
As of early 2026, there is no US Excise Tax on international wire transfers. A proposed 1% tax was not enacted. You may need to report large gifts over $100,000 to the IRS for informational purposes only.