It’s very easy to transfer money from India to USA nowadays. Thanks to Fintech advancement and the ease of business policies between both countries, sending money from one country to another is more convenient.
Now, let’s discover the best ways to transfer money internationally from India to the U.S. and other tax considerations to keep in mind while doing international monetary transactions.
India and USA relationships in general
Both countries have yielded technological advancement in recent years. With intermeshing of business policies, individuals and businesses can send money from India to USA in a hassle-free manner.
Some amazing ways to transfer money from India to USA
India has a close trade relationship with the US. In 2020, India was the 9th biggest trading partner in goods for the US.
In 2019-20, FDI equity inflow from the US to India reached $4.2 billion that is 34.5 percent higher than last year and was the highest annual inflows during the last two decades.
Indians are one of the biggest immigrant communities in the US. They have been migrating to the U.S. since the 1900s, and often need money sent to them from back to home. Both India and the US are maintaining export agricultural products to each other.
After several efforts, the Indian government passed the Liberalized Remittance Scheme. Accordingly, the money can be sent from India to the USA reaching a maximum limit of USD 250,000 per annum.
There were nearly 200,000 students with India as their place of origin pursuing higher education in the US in 2021-22.
With the above-mentioned information, there is a huge demand for transferring from India to USA for personal and business purposes.
Transfer of money from India to USA can be done in a fast and convenient way.
Some amazing ways to transfer money from India to US
Sending money from India to USA can be done in several ways. The reasons for transferring money can include: making business investments, purchasing real estate, higher education and study abroad, emigration, transfer of funds to relatives, donations…
Transfer of money from India to the USA has a different framework compared to other countries.
In the case of financial systems of the USA and India, the money transfer transactions are known as foreign exchange.
Let’s go through 2 amazing ways to send money from India to USA:
1. Online money transfer provider
Due to the increasing demand for money transfers, many institutions and companies have seized upon the chance and provide full services.
Financial technology is fast growing with increasing stable internet and secure communications. Thanks to the enhanced encryption standards of the modern online money transfer institutions, you can now send money from India to the USA from the comfort of your home.
Using an online provider for transferring money from India to the USA with safety and peace of mind.
With online transfer via a provider, you can complete the transfer transaction quickly, which is important for senders as the beneficiary is waiting for your money.
You can send money from India to the USA between 15 minutes and a couple of hours in most cases.
With the assistance of online transfer services, you can make the financial transaction within the convenience of your home or office. It’s required to have a stable Internet connection and personal computer, smartphone or laptop.
Transferring money in terms of digital technology is a safe and convenient way to transfer money from India to the USA.
In general, sending money through online transfer services has a high degree of convenience which surpasses traditional banks.
Due to technological edge, online money transfer providers often charge a low amount of fees compared to alternative payment methods such as traditional banks or cards.
You can use the services of online money transfer providers to send money from India to the USA to the beneficiaries by paying only low and reasonable commission amounts.
2. Transfer from India to United States via a bank
In September 2022, there were 34 private and public banks licensed in India. In addition to big banks, there are about 100,000 urban and rural cooperative ones.
Most banks in India will allow you to send money internationally by visiting a branch nearby. Payments from INR to USD will be sent directly from your bank account to your beneficiary local bank account in your chosen currency.
Bank transfers are widely used in the USA because they are secure, reliable and convenient.
If you transfer a large sum of money to the USA at once, It’s more cost-effective instead of transferring a small amount many times. You’re just charged once for all.
However, they often involve slow delivery speed in case delivery speed matters to you.
In addition, banks can charge you high fees and unfavorable exchange rates if compared to online money providers. This can make your transfer expensive.
Some people are wondering about how to transfer money from India to USA without tax. Here is the best answer.
Basically, the money transferred from India to the US is not taxable. But, if it exceeds 100,000 dollars for any current year, it’s required to report to the Department of the Treasury. This is just an informational form with no taxes payable.
Whether or not you have any tax obligations when transferring money between the two countries, it can depend on the source of the funds, the reason for the transfer, the amount and citizenship status.
The good news is that India and the USA have an agreement in place, which helps avoid double taxation on the same income.
However, it’s worth considering that your bank can require you to clarify the source of high-value transfers received in the US – and if you receive the funds as a gift or inheritance from abroad, different US tax reporting rules can be applied.
More about DNBC Financial Group
DNBC Financial Group is an outstanding startup in the Fintech industry, providing money payment solutions all around the world (including sending money from India to USA).
By setting a high standard for innovation in the money transfer platform since 2017, DNBC Financial Group has offered solutions for international transfer.
DNBC Financial Group currently has an increasing number of users globally and has become one of the most optimal providers in the world.