Sending Money to India as a Freelancer
Guide for freelancers in the US sending USD to India. Visa rules, tax implications, limits, and how Root works for your situation.
Freelancers in the US earning in USD often need to send money back to India for family, business, or investments. Your visa status (H-1B, L-1, OPT, etc.) doesn't restrict your ability to remit income, as long as the funds are from legal sources. This guide explains how Freelancers can efficiently transfer earnings to India, what regulatory factors to consider, and how to avoid common pitfalls when sending money across borders.
Freelancers typically send smaller, frequent amounts—ranging from $500 to $5,000—monthly, often to support family or manage home expenses. Recipients are usually parents, spouses, or business partners in India. Since income can be irregular and invoiced directly, proof of earnings may require 1099s, client contracts, or bank statements, which can be relevant during large transfers or compliance checks.
What You Need to Know
No Visa Restrictions on Sending Money
Your US work visa (including H-1B, L-1, OPT, or freelance on B-2 with permitted work) does not limit your ability to send money earned legally to India. As long as the income is reported and taxed appropriately in the US, remittances are fully allowed under FEMA guidelines.
TCS Applies After ₹7,00,000
India’s Tax Collected at Source (TCS) of 5% applies to cumulative remittances exceeding ₹7,00,000 (~$8,400) in a financial year (April–March). This is withheld at source by the remittance provider and can be claimed as a tax credit when filing Indian tax returns, if applicable.
No LRS Limits for NRIs
As an NRI, you are not subject to the $250,000 LRS cap when sending money to India. The LRS applies only to Indian residents sending money abroad—not to NRIs transferring funds to India.
Proof of Income May Be Required
For larger or frequent transfers, platforms may request documentation like freelance contracts, 1099 forms, or bank statements to verify the source of income, ensuring compliance with anti-money laundering laws.
How to Send — Step by Step
Verify Your Identity on Root
Complete KYC by providing your passport, US address, and IRS-issued TIN (usually your SSN or ITIN). This is a one-time process required for all US-based senders.
Pro tip: Have a recent utility bill or bank statement ready to confirm your US address.
Link Your US Bank Account
Connect your US bank account via ACH for free deposits. Freelancers using business accounts can also link them for higher limits and better record-keeping.
Pro tip: Business bank accounts may offer faster verification if your freelance work is incorporated.
Enter Recipient’s India Bank Details
Provide the recipient’s full name, bank account number, and correct IFSC code. Root currently supports NRO and regular savings/current accounts in India.
Pro tip: Double-check the IFSC code on your bank’s website or app to prevent failed transfers.
Initiate the Transfer
Enter the USD amount you’d like to send. Root displays the live INR amount using the interbank rate with no hidden fees. Confirm the transaction, keeping in mind cumulative TCS thresholds.
Pro tip: If nearing ₹7,00,000, consider timing transfers across financial years to optimize TCS impact.
Track and Confirm Delivery
Monitor your transfer in real-time via the Root app. Most transfers arrive in 1 business day. Notify the recipient to check for SMS alerts from their bank upon credit.
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Get StartedFrequently Asked Questions
Do I need to pay extra tax in India when I send my freelance income?
Sending money to India is not taxable in itself. However, if the funds represent income earned in India or generate income there (like interest), it may be taxable. TCS at 5% applies if your total remittances exceed ₹7,00,000 in an Indian financial year (Apr–Mar), but this is a advance tax that can typically be adjusted in your Indian tax return if you’re a non-resident.
Can I use Root if I invoice clients as a sole proprietor or LLC?
Yes. Root supports both personal and business senders. If you're sending from a business account or have a US-registered LLC, you can use your business details during verification. Ensure your business documents reflect your identity and US tax information.
Does TCS apply if I send money in multiple small transfers?
Yes. TCS is calculated on the cumulative total of all remittances you make in a financial year—regardless of frequency or size. Once your total exceeds ₹7,00,000 (~$8,400), TCS of 5% applies to the full amount sent that year, not just the excess.
Can I send to an NRE account with Root?
Root currently supports NRO and regular savings or current accounts in India. NRE account support is coming soon. If you plan to repatriate funds later, consult your Indian bank about compliance requirements for NRO vs NRE.
Is there a US tax (excise tax) on international money transfers?
As of early 2026, there is no 1% US excise tax on international remittances. A proposal was discussed, but it has not been enacted. Always check the latest IRS guidelines, but currently, no federal excise tax applies to outbound wire transfers.
What happens if I make a mistake in the IFSC code?
Incorrect IFSC codes typically result in failed transfers or delays. Root validates IFSC details before processing. If a transfer fails, funds are returned to your US account within 2–5 business days. Always confirm the IFSC via your recipient’s bank app or branch website.