Tax-free Money Transfer India to USA (a complete guide)

Tax-free Money Transfer India to USA When you send money internationally, you should keep two things in mind. There are two factors to consider: the amount of money your recipient will receive and the time it will take for the money to reach its destination.

If you are wondering how to send money to India from the U.S. at an affordable rate and in a timely manner, read on. Here are some of the best ways to send money from India to the USA.

Sending Money from India to the U.S. – What to Consider

Exchange Rate

The foreign exchange rate refers to the value of a currency in comparison to another currency. Currency exchange rates are one of the ways banks and money transfer companies make money.

If you are sending a large amount of money, even a small difference in the exchange rate can make a big difference. 

You will pay in Indian rupees (INR), and the recipient will receive the money in U.S. Dollars since you are sending money from India to the USA. It is necessary to convert INR to USD according to the exchange rate at the time of sending.

To be notified when the USD/INR exchange rate reaches your desired level, subscribe to our USD/INR exchange rate alerts. 

Transfer Speed

Money reaches different destinations at different rates depending on its intended destination. It can arrive within minutes or days. Transferring cash through a money transfer agent is more convenient but more expensive.

You may have to wait about 3-5 days for bank transfers, but they are cheaper. You can find the best rates and the fastest transfer speeds through online money transfer services. 

Here are some tips for transferring money from India to the United States.

• The transfer fee can be either fixed or a percentage of the amount you are transferring. 
• Depending on the method of payment for the transfer, there may be additional fees. 
• Credit card transfers, for example, are more expensive than debit cards or bank transfer transactions. In addition, you will have to pay foreign conversion tax and service tax, which are fixed but vary from country to country. The service tax is deducted only from the commission, not the total amount.
• The exchange rate of associated with the payment method. Remittance service providers vary greatly in their rates, and the amount your recipient will receive will vary between providers.
• Choose a company that offers great customer support so that you can get assistance during the transfer process or if something goes wrong. Contacting the customer service department should be easy via email, live chat, or phone, and it should be available 24/7.

You will get the best service if you choose the one that is right for your needs after considering all these factors. To learn more about international money transfer companies, check out our blog.

We compared 4 money transfer companies to find you the best remittance rates to send money from India to USA.

Service	Transfer Time	Transaction Charges
1. Wise (formerly known as TransferWise)	Within minutes	$5
2. Western Union	4-5 Business Days	$0
3. BookMyForex	Transfers Within 12-48 Hours	Buy, Sell, Exchange & Transfer Money At Live Rates With No Hidden Charges With BookMyForex
4. ExTravelMoney	2 business days.	We charge absolutely zero commission on every transaction. No hidden charges either!

Is it possible to send money from India to the U.S. in different ways?

1. Wire Transfer

SWIFT (Society for Worldwide Financial Transactions) is a network that enables banks to securely share transaction information between themselves when they transfer money from one bank to another.

By using this electronic money transfer, you can transfer/wire money from your bank account to a US bank account.

The major Indian banks and Authorised Dealers approved by the Reserve Bank of India (RBI) are linked with over 400 international banks around the world that are part of the SWIFT messaging network to facilitate safe and secure remittances out of India.

ICICI Bank, AXIS Bank, SBI, etc., are among the major banks that offer outward remittance services.

To make the transfer, you need to provide your bank account number, your recipient’s bank details (name, address, account number), and a swift code or routing number.

If necessary, you may have to provide additional documents to prove your identity or the purpose of the outward remittance. Keep in mind that there can be corresponding bank charges for bank transfers.

2. Foreign Currency Demand Draft

A Foreign Currency Demand Draft is a pre-paid negotiable instrument issued by a bank in a particular foreign currency. These are cheaper than international wire transfers. The bank or service provider you used charges only the demand draft fee. Demand drafts can be replaced if lost or stolen. However, it may take longer for the recipient to receive the funds. You can save money and time by choosing them if you do not have a tight schedule. 

3. Online Money Transfer Service Providers 

Online money transfer companies offer the best exchange rate and lowest transfer fees.

Money transfer services from India to the U.S.

1. Wise, formerly known as TransferWise

Based in London, the company specializes in online money transfers. It offers some of the cheapest methods of sending money online. Exchange rates are based on midmarket rates, and transfer fees are displayed upfront.

You can transfer money via their website or mobile app. Transfers can be paid for with debit cards, credit cards, or via bank accounts. Their customer reviews are generally positive.

2. Western Union

Money transfer company Western Union has been around for over 100 years. Money can be sent from India to the U.S. through Western Union’s online service. Upon registering on their website, you can initiate the transfer and pay with your bank account.

Payment is made directly into the recipient’s account. The transaction will take one business day, and you can track it online.

3. BookMyForex

You can transfer money online from India to the United States by visiting their website and entering your bank details, your beneficiary’s bank details, providing I.D. proofs, and other verification.

Foreign exchange fees are not charged. It takes two days for the money to be transferred. 

4. ExTravelMoney

To initiate a money transfer online:

1. On their website, enter the amount of USD you need to transfer along with the reason for the transfer and compare the different rates offered by banks and RBI-authorised dealers.
2. Select a rate and book it.
3. Provide the necessary documents for verification. Once you have been verified, the money will be transferred to your chosen bank by NEFT/RTGS.

A credit will be issued to the recipient in 2 business days.

5. Remitout

Remitout currently offers a service for transferring money for educational expenses to Indian students studying at U.S. universities. For money transfers, you need to register with their website using your Indian banking details and the address of the university where you or your ward are studying. It takes two business days until the money reaches you. 

Remittances in INR to USD

Many Indians live in the United States, including students, job seekers, migrant workers, and visitors. Indians frequently use remittances and other means to send money to the U.S. Sending money from India to the U.S. is mostly done to pay college fees, medical treatment, Visa fees, foreign investments, or send a monetary gift to friends and family in the U.S. 

All resident Indians are eligible to transfer funds up to USD 250000 per year under the Liberalised Remittance Scheme (LRS).

Residents of India sent $13.78 billion under the LRS scheme in the Financial Year 2018-19. According to the Reserve Bank of India, Indians sent $18.75 billion in FY’20 despite the Coronavirus scare and a dip in March, taking the total to $58 billion over the last six years. Find out more about LRS.

With remittances worth $6.94 billion and $4.99 billion, respectively, travel and education dominated the reason for remittances. Gifts ($1.9 billion) and the maintenance of close relatives ($3.4 billion) rank second and third, respectively. It is inevitable that travel will decline, but investments and deposits will continue to rise.

Which are the best companies for Money Transfer India to USA

In order to select the best money transfer company for your US to India remittances, you should compile a list of potential companies. Our site will present a variety of providers for you to compare based on your sending and receiving countries. With RemitFinder, you’ll be able to start with several good options.

The next step in choosing a provider would be to determine what you are looking for. Are you looking for the cheapest or no fees, the highest rate, quick transfers, etc.? Various parameters can be used to compare these companies, and it all depends on your preferences.?

A coupon or deal for United States Dollar to Indian Rupee money transfers may also help you decide which provider to use. The ability to take advantage of promotions can help you save a lot of money and should be one of the factors used to decide which are your top candidates for sending money to India.

A step-by-step guide to sending money to India from the United States

Follow these simple steps to send money to India from the United States.

• The first time you send money to a provider, you should register an account with them. There will likely be a confirmation email and a confirmation text on your mobile phone. This will ensure that you are the one creating the account.
• Additionally, you will be required to provide a copy of your national I.D. with a photo and proof of address. Your account will be protected with this information and fraud prevention.
• You will need to enter your payment method – this is how you will pay for your transfer. In general, you would want to fund your transaction with a U.S.A. bank account.
• Please provide information about who will receive the funds (it can also be your own account in India).
• Specify the delivery method – how the proceeds will be sent to the recipient. If available, a bank account is usually the best option.
• Start the transaction by adding the transfer amount.

The provider will then process your USD to INR remittance, and you should not need to take any further action. Keep an eye on your email inbox, as you should receive notifications regarding the progress of your transaction.

The tricky part is choosing the right company to handle your overseas bank transfer. While making an actual foreign exchange transaction online is relatively straightforward, choosing an overseas bank transfer company may be more challenging. RemitFinder’s expertise in the money transfer space can help you select the best remittance provider.

Conclusion

sending money from India to the U.S. can be done through a bank or a money transfer company, depending on your needs and their convenience. If all else is equal, we recommend that you go with an online option that offers you a transparent fee structure and the best exchange rate. With our online remittance comparison service, you can compare money transfer rates between USD and INR.

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