Indian Rupee to US Dollar: How to Send and Receive Money Internationally

Sending Money Abroad from India (Outward Remittance)

Under the Liberalized Remittance Scheme (LRS), Indian residents can send up to USD 250,000 per financial year abroad for permissible purposes: education, travel, investment, gifts, and maintenance of relatives abroad.

Tax on outward remittance: 5% TCS (Tax Collected at Source) on amounts above Rs 7 lakh per year (from October 2023 onward). For education funded by loans, TCS is 0.5%. TCS is credited to your form 26AS and is adjustable against your income tax liability.

Best Services for Sending Money Abroad

Wise (TransferWise): Closest to mid-market rate, transparent fees (0.4-1.5%), fast (1-2 days). SWIFT alternatives available.

Western Union / MoneyGram: Available at bank branches, faster for cash pickup internationally.

HDFC / ICICI / SBI Forex: Familiar but typically 2-4% worse than mid-market rate.

Niyo Global / Freo: App-based, better rates for students.

For Rs 5 lakh transfer, the difference between bank rates and Wise can be Rs 8,000-15,000 on just the exchange rate.

Receiving Money from Abroad (Inward Remittance)

FCNR account (Foreign Currency Non-Resident): Deposits held in foreign currency. Interest rates set periodically, currently offering competitive rates on USD and GBP deposits.

NRE account: Rupee account, fully repatriable, tax-free interest in India.

SWIFT transfer: Direct to your Indian bank account. Processing time 1-3 business days.

Wise local accounts: Receive in 10+ currencies to Wise account, convert and transfer to India.

Tax on Money Received from Abroad

Gifts from relatives abroad: Tax-free regardless of amount.

Gifts from non-relatives: Tax-free up to Rs 50,000 per year; above Rs 50,000 taxable as income.

Income earned abroad (remitted to India): Taxable in India for resident individuals on global income.