Planning to send money to India? Here's everything you need to know.
October 26, 2020 — 4 min read
Can’t make it home for Diwali, but hoping to help your friends and family celebrate? Or is someone celebrating a birthday? Or do you have loved ones back home that you want to regularly send money to?
Whatever your reason, you can utilize online money transfers quickly, easily and securely send money to friends and family back home, without having to worry about bank fees and unfavorable exchange rates.
It’s a simple process, and you can make it even simpler for yourself and your recipients by understanding how to send money to India, and what you’ll need to consider as you do it. Not sure where to find this? Don’t worry, we’ve got you covered.
Don’t get us wrong: it’s quick and easy to send money to India online. You won’t need to do any “homework” or engage in a long, tedious process with tons of unnecessary extra steps that will just frustrate you and waste your time. But taking just a few minutes before you initiate your money transfer will help the process go that much smoother.
One common question that we get from our users is, “Are there any taxes on the money I send?” The answer to that question is maybe.
If you are an NRI (Non-Resident Indian) sending money to a relative in India, we’ve got good news: that money will not be taxed. But what defines a relative? Your recipient would qualify if they are one of the following to you:
Your spouse’s sibling
Your aunt or uncle (by blood relation or marriage; family friends would not qualify)
Your lineal descendant or ascendant
Your spouse’s lineal descendant or ascendant
The aforementioned lineal descendants or ascendants’ spouses.
You also will not be taxed on money gifted for the following purposes:
For inheritance or under a will
For the recipient’s marriage
In contemplation of death
From or by a recognized trust or institution under section 12A
From or by a recognized fund, foundation, university, educational institution, hospital, or medical institution.
Now, what if they’re a friend or a relative not mentioned above, or the gift doesn’t fall under one of the above categories? In that case, any amount above ₹50,000 is taxable (again, so long as it is being sent to a non-relative and does not meet one of the above conditions).
Yes, it is important to check with your country’s tax regulations to see whether you will be taxed on money sent to others as a gift.
For example, if you’re sending money from the United States, you would be taxed on any amount above $15,000 USD.
If you’re sending money from the United Kingdom, you can send gifts to the value of £250 to as many other individuals you wish in a tax year. You also have a personal annual gift exemption of £3,000.
You will need to provide a few details about yourself and your recipient so we can send your money to India.
For your recipient, you’ll need the following:
Their full name
Their bank name
Their bank account number
Their BIC/SWIFT code
You will also need to provide your own payment information. You can pay for your money transfer via the following options:
ACH direct debit
Got it? Then you’re good to go!
Ready to send money? Looking for a secure option that will get your money to your recipient quickly (even within minutes), at a favorable exchange rate and with no third-party fees? We facilitate fast, low-cost and secure money transfers to India, and would be happy to help you. Here’s what you can do:
Let us know the currency you want to send, the currency you want your recipient to receive (Indian rupee, in this case), and how much you want to send.
Enter the recipient information detailed above.
Provide your payment information.
Double-check that you’ve entered everything correctly, you’re happy with the exchange rate, and that you understand the timing of your transfer.
Confirm your money transfer!
And just like that, your money is ready to go to India. Now, wasn’t that easy?