Foreign Remittance Calculator

Cheapest options for remittance to India in 2025: Wise (formerly TransferWise) — near mid-market rate, transparent fees, typically 0.5-1% total cost. Remitly — competitive rates for USD/GBP/AUD to INR. BookMyForex/InstaReM — RBI-authorised dealers with good rates for large amounts. Bank wire transfers — convenient but expensive (2-4% markup + flat fee). Western Union/MoneyGram — widely available but higher fees. faydemand.in calculator compares total cost across all providers for your specific amount and currency.

TCS (Tax Collected at Source) on foreign remittance under LRS (Liberalised Remittance Scheme): For remittances above ₹7 lakh per financial year — 20% TCS applicable (Budget 2023, effective Oct 2023). For education loan remittances — 0.5% TCS. For medical treatment remittances — 5% TCS. TCS is not a final tax — it is advance tax collected at source, fully adjustable against income tax liability or refundable via ITR. For NRIs sending money TO India — TCS does not apply on inward remittances.

Exchange rate markup = difference between mid-market rate and actual rate offered. Mid-market rate (Google/XE.com rate) is the theoretical fair rate. Banks and transfer services add 1-4% markup above this. Example: USD/INR mid-market 84.50. Bank offers 82.50. Markup = (84.50-82.50) ÷ 84.50 × 100 = 2.37%. On $5,000 transfer — this markup costs $118.5 hidden in the exchange rate. faydemand.in shows total cost including hidden exchange rate markup so you can compare honestly.

For NRIs sending money to India (inward remittance): Source of funds declaration (employment income, savings, investment proceeds). KYC documents: passport, visa, foreign address proof. PAN number of recipient (for amounts above certain thresholds). For large transfers (above $250,000): Additional FEMA compliance documentation may be needed. Banks in India must receive foreign remittances in NRE/NRO account properly documented. SWIFT/wire transfer reference number for tracking.

NRE (Non-Resident External) account: Receives foreign income — fully repatriable, interest tax-free in India. Best for: Salary, employment income from abroad. NRO (Non-Resident Ordinary) account: Receives India-sourced income (rent, interest, dividends) — limited repatriation ($1M/year), interest taxable. For remittances from foreign income: NRE account preferred. For India-sourced income: NRO account. Rule of thumb — foreign earnings always go to NRE for maximum tax efficiency.

Transfer timelines vary by service: Wise: 1-2 business days typically. Remitly Express: Minutes to hours (higher fee). Remitly Economy: 3-5 days (lower fee). Bank SWIFT wire: 2-5 business days. Western Union/MoneyGram cash pickup: Minutes to 1 day. Major holidays and weekends cause delays. faydemand.in comparison table shows estimated delivery time alongside cost — speed vs cost trade-off clearly visible for each provider.

For NRIs sending money TO India — no specific RBI limit on inward remittances. However: Large transfers may require source of funds documentation at the Indian bank. Very large amounts may trigger additional KYC. FEMA compliance required — funds must be from legitimate sources. Foreign country limits: USA — no outbound limit but transfers above $10,000 reported to FinCEN. UAE — no limit but KYC required for large amounts. Always check both sending country and receiving country regulations for very large transfers.

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is the international messaging network banks use to send money globally. Process: Initiate wire transfer at foreign bank → SWIFT message sent → Passes through correspondent bank(s) → Credited to Indian NRE/NRO account. Timeline: 2-5 business days. Cost: Your bank fee ($25-50) + correspondent bank fee ($15-30, often deducted en route without upfront disclosure) + Indian receiving bank fee (₹500-2,000) + exchange rate markup (1-3%). Total SWIFT cost typically 2-4% of transfer amount.

Exchange rates fluctuate constantly — no guaranteed best time. Strategies: Rate alerts — set target rate on Wise, Google Finance, or XE.com; transfer when reached. Avoid transfer during INR volatility events (RBI announcements, US Fed decisions, global risk-off). Forward contracts — some services allow locking in current rate for transfer 1-3 months later (useful for large known amounts). For regular remittances — systematic monthly transfers average out fluctuation, similar to SIP principle. Cost optimization through right service is more impactful than timing optimization.

Money received from abroad in India: If remitted to NRE account — interest earned is tax-free in India; principal is not taxable (it's your own foreign earnings). If NRI sends money to resident family members: Genuine gift to close relatives (spouse, parent, sibling, child) — not taxable for recipient under Section 56. Gifts above ₹50,000 from non-relatives technically taxable as income from other sources. For NRI individuals: India taxes only India-sourced income — foreign income is not taxable in India for NRIs.