How much money can be transferred from India to USA?
The limit to transfer funds from your NRI accounts in India to your overseas account in USA vary with respect to the types of accounts chosen for remittance:
Limit of transfers from India to USA
NRE Accounts: There is no limit for repatriating funds from NRE accounts as it is fully and freely repatriable from India. NRE Deposits are tax-free in India as NRE Accounts are meant to maintain the income earned outside India.
NRO Accounts: The maximum fund that you can repatriate per financial year from your NRO account is USD 1 million as allowed by Reserve Bank of India (RBI). The funds are not freely repatriable. 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 for everyone.
However, you can later claim for a tax refund according to your tax slab:
Income Tax Slab
Up to 2.5 Lakhs
|2.5 Lakhs to 5 Lakhs
5 Lakhs to 7.5 Lakhs
7.5 Lakhs to 10 Lakhs
|10 Lakhs to 12.5 Lakhs
12.5 Lakhs to 15 Lakhs
|15 Lakhs and above
You can also transfer funds from NRO to NRE account after providing proper documentation prepared by a Chartered Accountant stating that all the taxes are paid on the funds being transferred from the NRO Account.
For discussing the same with a CA, you can get Tax advisory from SBNRI experts from the link below. Just write your query and we will get back:
FCNR Accounts: There is no limit for repatriating funds from FCNR accounts as it is fully and freely repatriable from India.The FCNR Deposit lets you earn tax-free interest on most of the major globally tradable foreign currencies such as USD, GBP, EUR, JPY, AUD, CAD, SGD, HKD, and others.
*(Cess: A cess is a tax on tax that you pay to the government for purposes set by the government. The cess is charged till the objective set by the government is fulfilled. Eg: Krishi Kalyan Cess, Swachh Bharat Cess etc.)