What are the taxes on sending money from India to UK?
SBNRI Team
answered on 11/02/2023
You can send money from India to UK from either of your NRI Accounts. The taxes on sending money from India to UK depends on the type of account chosen.
Taxes on sending money from India to UK based on the account chosen:
NRE: The NRE account can be opened for the purpose of maintaining the income earned outside India with tax free interest (upto 7.25%) on Fixed Deposits. Both the principal amount and interest earned are freely and completely repatriable from India.
NRO: Only the interest earned on NRO Deposits is taxable in India: 30% tax + surcharge + education cess* is deducted at the source of interest earned in India. The repatriation of the money in the account can be done up to a maximum of 1 million USD per financial year.
FCNR: FCNR deposits are tax-free in India. The principal amount as well as the interest are freely and completely repatriable.
Receive money from abroad in India
There are multiple options to send money to India from abroad. Refer the table below to know the charges for sending money to India from abroad and choose the best suited medium for yourself.
*Money Transfer Operators: Money transfer operators (MTOs) are financial companies (but usually not banks) engaged in cross border transfer of funds using either their internal system or using their collaborations with other international banking networks. Eg: Transferwise, Western Union.
*SWIFT: Society for Worldwide Inter-bank Financial Telecommunication (Offline money transfer facility that can be availed at bank branches overseas)
*Foreign Currency Demand Drafts: A form of demand draft made in foreign currency at various bank branches located overseas to remit money to India. The equivalent amount in INR will be debited for remittance.
| Place | Online | Offline | Via Bank Branch | |||
| Internet/ Mobile Banking (Card/ Bank Account Transfer) | Money Transfer Operators (Card/ Bank Account Transfer) | Agents (Cash/ Cards/ Bank Account Transfer) | Call Centres (Card/ Bank Account Transfer) | Foreign Currency Demand Draft | SWIFT Transfers | |
Time and Charges | ||||||
| USA | 1 hour to 2 working days Up to $9.38 per $200 | 1 hour to (3-5) working days Up to $9.50 per $200 | 1 hour to 1 working day Up to $11.88 per $200 | 1 working day Up to $3.94 per $200 | (2-3) weeks Rs.500/- + taxes | (24-48) hours service tax on currency conversion (up to Rs.300/- + taxes) |
| Dubai | Same day to 2 working days Up to 4.04 AED per 735 AED | Within an hour Up to 59.98 AED per 735 AED | 1 hour to (3-5) working days Up to 20.07 AED per 735 AED | 1 hour to (3-5) working days Up to 15.88 AED per 735 AED | (2-3) weeks 0.2% (making charges) + Rs.35/- (courier charges) or Rs.85/- (whichever is higher) | (24-48) hours service tax on currency conversion (up to Rs.300/- + taxes) |
| Saudi Arabia | N.A. | N.A. | Within an hour Up to 43.20 SAR per 735 SAR | 2 working days Up to 39.98 SAR per 735 SAR | (2-3) weeks 0.2% (making charges) + Rs.35/- (courier charges) or Rs.85/- (whichever is higher) | (24-48) hours Up to 39.98 SAR per 735 SAR |
| United Kingdom | 1 hour to (3-5) working days Up to 5.39 GBP per 120 GBP | 1 hour to (3-5) working days Up to 5.81 GBP per 120 GBP | 1 hour to (3-5) working days Up to 7.20 GBP per 120 GBP | 1 hour to 1 working day Up to 4.99 GBP per 120 GBP | (2-3) weeks Rs.500/- + taxes | (24-48) hours service tax on currency conversion (up to Rs.300/- + taxes) |
Note: The receiver will receive the money either in their own/partner bank accounts or as cash from the agents of the respective firms/banks chosen for money transfer.
The summary of the table (based upon the time and the charges of sending money to India from abroad):
USA:
Less time, high cost: Agents
More time, low cost: Foreign Currency DD/ Swift Transfers
Moderate time and cost: Money Transfer Operators (Transferwise),Call Centres
Dubai:
Less time, high cost: Money Transfer Operators (Transferwise)
More time, low cost: Foreign Currency DD/ Swift Transfers
Moderate time and cost: Internet Banking
Saudi Arabia:
Less time, high cost: Agents
More time, low cost: Foreign Currency DD
Moderate time and cost: Call Centres
UK:
Less time, high cost: Agents
More time, low cost: Foreign Currency DD/ Swift Transfers
Moderate time and cost: Call Centres
Use the button below to Remit Money to India through SBNRI.
Related Questions
SBNRI Team
answered on 10/09/2020
It depends on your VISA. See, there are multiple cases: 1. If you have a residence permit stamped on your VISA, then you can easily go back once international travel resumes. 2. If you have a visa that permits multiple entry, you can go back once international travel resumes within the validity of your […]
SBNRI Team
answered on 28/02/2023
Yes, the repatriation of funds in the NRE Account can be done easily. Funds in the NRE accounts of NRIs (both principal amount and the interest earned on the deposit) are fully and freely repatriable outside India. What is Repatriation? Repatriation refers to the transfer of funds (both principal amount and the interest earned […]
SBNRI Team
answered on 30/03/2020
The process of repatriation of funds from NRI Accounts including FCNR account: Accounts Process Limit NRE 1. ONLINE: Internet banking for outward remittance (sending money to your overseas account from your NRE account) 2. OFFLINE: Fill these 2 forms. (You can get them at the bank branch or download them online, sign them and send […]
SBNRI Team
answered on 16/11/2020
We have made a special video on how to select the cheapest medium for remittance. You can find the video below: Keeping in mind the factors mentioned in the video, which are: Final amount received Exchange rate, and Time frame (Urgency) We’d suggest you to go ahead with Transferwise whom we have partnered […]
