Complete Pre-Transfer Checklist: USA to India
Everything to check before sending money from USA to India. Documents, bank details, LRS limits, TCS rules, and more.
This checklist helps American NRIs prepare for smooth, compliant USD to INR remittances to India. It covers document requirements, transfer steps, and key regulatory considerations like TCS and IFSC codes. Use it to avoid delays, reduce errors, and ensure your money reaches family or accounts safely.
1Documents to Prepare
Valid government-issued photo ID (e.g. US passport or driver’s license)
Required for identity verification under US and Indian anti-money laundering rules.
Recipient's bank account number in India
Must match exactly with their bank records to prevent transfer rejection.
Recipient's IFSC code
11-character code that identifies the correct bank branch in India. Typos here cause failed transfers.
Recipient’s PAN card number (if sending large amounts)
Indian banks may require PAN for transactions over ₹500,000 for tax compliance.
Optional2Before You Transfer
Confirm the current USD to INR exchange rate
Ensure you’re getting a fair rate close to the mid-market level. Hidden markups can cost more.
Check if your transfer exceeds ₹7,00,000 in the financial year (Apr-Mar)
If yes, 5% TCS (Tax Collected at Source) will apply. Factor this into the total amount sent.
Ensure funds are from permissible sources (e.g. salary, savings)
FEMA prohibits remittances from gambling, lottery winnings, or other restricted sources.
Verify that your recipient's account type is supported
Root supports NRO and regular savings/current accounts. NRE account support is coming soon.
3Recipient Details
Full legal name as per bank records
Even minor mismatches (e.g., 'Raj' vs 'Rajesh') can delay or block the transfer.
Bank name and branch location
Helps confirm accuracy of the IFSC code and aids troubleshooting if needed.
OptionalMobile number and email of recipient
Allows them to receive transfer confirmation and track incoming funds.
Optional4After Transfer
Save the transaction reference number
Needed to track the payment and resolve issues with your provider or bank.
Notify the recipient about the transfer
They should expect the INR credit within 1–2 business days and check their account.
Review year-to-date remittance total for TCS tracking
Keep personal records to anticipate 5% TCS when crossing ₹7,00,000 annually.
All checked? Start your transfer with Root.
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Send with RootRegulatory Reminders
TCS Applies Above ₹7,00,000 Annually
Indian tax law mandates 5% Tax Collected at Source (TCS) on outward remittances exceeding ₹7,00,000 in a financial year (Apr–Mar). The sender is responsible for this cost. Some service providers may collect it upfront.
FEMA Compliance Required
All USD to INR transfers must comply with India’s Foreign Exchange Management Act. Remittances for prohibited purposes like gambling, lottery, or real estate (by non-residents in some cases) are not allowed.
NRO vs NRE Accounts
Root currently supports transfers to NRO and regular savings/current accounts in India. NRE accounts are not yet supported — funds sent to NRE accounts may be returned or delayed.
Common Mistakes
❌ Entering an incorrect IFSC code
✅ Double-check the 11-character IFSC code using your recipient’s bank website or a trusted IFSC lookup tool before sending.
❌ Forgetting to factor in TCS for large transfers
✅ If you’ve already sent over ₹7,00,000 this year, add 5% to your transfer amount or inform the recipient about the deduction.
❌ Using nickname or short-form names
✅ Always enter the recipient’s full name exactly as it appears in their bank account to avoid rejection.
❌ Assuming all accounts are supported
✅ Root does not yet support NRE accounts. Confirm the recipient’s account type to prevent failed transfers.
Common Questions
Do I have to pay TCS when sending money to India?
Yes, if your total remittances exceed ₹7,00,000 in a financial year (Apr–Mar), 5% TCS applies. This is collected at the time of transfer and can be claimed as a tax credit in India.
How long does a USD to INR transfer take?
Most transfers arrive in 1–2 business days, depending on the service provider, bank, and verification processes. Weekends and Indian public holidays may delay credit.
Can I send money to an NRE account with Root?
Not currently. Root supports NRO and regular savings/current accounts. NRE account support is coming soon.
Is there a maximum limit on how much I can send?
As an NRI, you are not restricted by India’s LRS limit of USD 250,000. However, large transfers may trigger enhanced verification under anti-money laundering rules.
Are there any US taxes on sending money to India?
As of early 2026, there is no US Excise Tax on international wire transfers. A proposed 1% tax was not enacted. Always confirm current federal rules before transferring.