Money transfer from USA to India : Tax Implications



  • Helloo, I am a student of Computer Science in India. I have some query. Suppose if a person from USA want to transfer money in my bank account in india ( amount 10 lacs around ). So tax is applicable on it ? If applicable then how much ?



  • Hello Prateek,

    We would be able to help you better if you can help us understand the situation better, a couple of queries :

    • Are you transferring from your own account in US to your own account in India ?
    • Is the money tax paid in US ?

    Thanks.



  • Is some relative transferring you money or is it some client transferring you money to India ?

    This is a big amount and you should have proper head under which the money is coming to you.



  • Yes,

    If its an NRI transferring money who is relative(by definition of income tax rules) then the income wont be taxed, in all other cases, income would be taxed at individual's slab.



  • Yes, you have to pay the tax if you are going to transfer funds from USA to India. This tax would be paid by the person in the USA and you will receive the remaining amount. There is no system in mind which is tax free until now!



  • @landpel This is not true. Tax is to be paid mostly at the side of the receiver since the taxes at the end of sender are already assumed to be paid.

    Most of the taxes are always paid at the end of receiver apart from a few indirect taxes.



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  • Yes, the person who is sending the amount from USA to India have has to pay the tax. The fees vary bank to bank according to the policies of the banks.I think Western Union is a quick way to send and receive money all around the world. Thank you!