Transfer Limits — USD to INR Frequently Asked Questions
Common questions about transfer limits when sending USD to INR. Clear answers with specific numbers and rules.
This FAQ page covers transfer limits for sending USD to INR from the United States to India. Understanding daily, monthly, and annual limits helps NRIs plan large or recurring remittances without delays. While US-based senders aren’t restricted by India’s LRS limit, tax and compliance rules still apply for larger transfers.
Key Numbers
₹7,00,000
TCS Threshold
5% TCS applies on full amount after this annual limit
5%
TCS Rate
Effective October 1, 2023, on remittances over ₹7 lakh/year
$250,000
LRS Annual Limit
Applies to Indian residents, not NRIs sending money to India
Frequently Asked Questions
What is the maximum amount I can send from the US to India in a day?
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There is no official daily limit set by Indian authorities for USD to INR remittances from NRIs. However, individual service providers may impose their own daily caps, such as $10,000 per day. Check with your provider for specific thresholds.
Is there a monthly limit on how much I can transfer to India?
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No, the Reserve Bank of India does not impose a monthly transfer limit on NRIs sending money to India. You can make multiple transfers totaling up to $250,000 annually under permissible purposes, but TCS at 5% applies after ₹7,00,000 (~$8,400) in a financial year.
How much can I send to India in a year without legal issues?
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NRIs can send unlimited funds to India annually, but transfers exceeding ₹7,00,000 (~$8,400) in a financial year trigger 5% TCS under Section 206C(1D). While RBI's LRS cap of $250,000 applies to Indian residents, it does not apply to NRIs sending money to family in India.
What happens if I send more than ₹7,00,000 in a financial year?
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If your total remittances to India exceed ₹7,00,000 in a financial year (April-March), the sender will face a 5% Tax Collected at Source (TCS) on the full transaction amount starting from October 1, 2023. The collected tax can be claimed as a credit during income tax filing in India.
Can I avoid TCS by splitting transfers across multiple remittances?
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No, TCS applies cumulatively. If your total outbound remittances exceed ₹7,00,000 in a financial year, 5% TCS will be applied to every subsequent transaction, regardless of whether you split them into smaller amounts. The Indian bank or intermediary tracks this under KYC reporting.
Does FEMA restrict how much I can send to India?
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FEMA does not set a maximum limit for NRIs sending money to India, but it prohibits remittances for restricted purposes like gambling, lottery, or real estate purchase by non-residents without RBI approval. Always ensure your transfer complies with FEMA guidelines to avoid rejection.
Why is PAN required for large transfers to India?
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Indian banks require the recipient’s PAN for remittances exceeding ₹50,000 (~$600) for KYC and reporting under anti-money laundering rules. For transfers above ₹7,00,000, PAN is mandatory to process TCS and ensure tax compliance.
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