Sending Money to India as a Entrepreneur
Guide for entrepreneurs in the US sending USD to India. Visa rules, tax implications, limits, and how Root works for your situation.
Indian entrepreneurs in the US often need to send money to India for family support, business investments, or real estate. Your visa status (H-1B, L-1, E-2, or founder on O-1/E-2) doesn’t restrict your ability to remit funds, but tax and compliance rules still apply. This guide covers how to send USD to INR efficiently, what fees and regulations matter, and how to avoid common pitfalls when transferring as a business founder.
Entrepreneurs typically send larger, less frequent transfers—ranging from $5,000 to $50,000—often to fund family expenses, startup ventures, or property development in India. Recipients are usually parents, partners, or business entities. As business owners, founders may also need to validate income sources and maintain clean compliance records for both US and Indian tax reporting.
What You Need to Know
No Visa-Based Sending Limits
Your US visa status (E-2, O-1, H-1B, etc.) does not limit your ability to send money to India. As an NRI, you're not subject to India’s LRS cap of $250,000—only Indian residents are. You can remit freely from US earnings as long as funds are from legitimate sources.
5% TCS Applies Beyond ₹7,00,000 Annually
If the cumulative value of outward remittances to India from your name exceeds ₹7,00,000 ($8,400 approx.) in a financial year (Apr-Mar), Indian banks may apply 5% Tax Collected at Source (TCS) on the excess. This applies regardless of your NRI status if the recipient account is in India. You may claim credit for TCS paid when filing Indian taxes.
Business Income Documentation May Be Needed
If you're sending funds from business revenue (not salary), be prepared to provide documentation like tax returns, bank statements, or company invoices if requested by the platform or Indian banks. Transparent sourcing helps prevent compliance holds.
Use NRO or Savings Accounts in India
Root currently supports transfers to NRO, savings, and current accounts in India. NRE account support is coming soon. Ensure your recipient provides the correct IFSC code and account number to avoid delays.
How to Send — Step by Step
Verify Your Identity on Root
Complete KYC by uploading your passport, US visa, and proof of address (e.g., utility bill or bank statement). Founders may also provide business registration details if sending large volumes.
Pro tip: Have your I-797 or visa approval notice ready—it speeds up verification.
Add a Beneficiary in India
Enter recipient’s full name, Indian bank account number, and 11-digit IFSC code. Confirm whether it’s an NRO, NRE (coming soon), or regular savings account.
Pro tip: Double-check the IFSC code on your bank’s official website—errors here cause failed transfers.
Enter Transfer Amount in USD
Choose how much you want to send. Root shows the live USD to INR exchange rate and exactly how many rupees the recipient will get. Amounts over $8,400 contribute to TCS threshold.
Pro tip: For transfers near or above ₹7,00,000 in a financial year, inform your recipient about potential 5% TCS on the excess.
Review Fees and Exchange Rate
Root charges zero fees and offers the interbank exchange rate. Confirm the final amount before proceeding—no hidden markups or intermediary bank charges.
Pro tip: Compare the rate shown with Google’s USD to INR to ensure it matches mid-market levels.
Confirm and Send
Authorize the transfer using your payment method (bank transfer or debit card). Once confirmed, tracking details are available in-app. Most transfers land in 1 business day.
Pro tip: For business-related transfers, keep a record of purpose and documentation for audit readiness.
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Get StartedFrequently Asked Questions
Can I send money to India as a founder on an E-2 visa?
Yes. Your E-2 visa does not restrict international money transfers. As long as the funds are from legal US income or business revenue, you can send money to India without limitation.
How does 5% TCS affect my startup founder remittances?
If your total remittances to India exceed ₹7,00,000 in a financial year, 5% TCS applies to the amount above that threshold. For example, on a $10,000 transfer (approx ₹8.4 lakh), the excess ₹40,000 may attract TCS of ₹2,000. This is refundable or creditable on your Indian tax return if applicable.
Do I need a PAN card for my recipient?
Indian banks may require the recipient’s PAN for transfers over ₹50,000, especially to NRO accounts. For compliance, always provide it when available—even if not immediately requested.
Is the US 1% Excise Tax on international wires in effect?
As of early 2026, the proposed 1% excise tax on outbound wire transfers has not been enacted. You are not currently charged this tax. However, monitor updates from the US Treasury, as legislation could change.
Can I send funds from my US business account to India?
Yes, but Root currently supports personal accounts for compliance. You can transfer from your personal account funded by business profits. For large B2B or investment transfers, consult a tax advisor to ensure FEMA and IRS compliance.