You can legally transfer large sums (even over $50,000) to India, if you do it right.

The most tax-efficient way for NRIs to send money is through an NRE (Non-Resident External) account. Funds remitted here are fully repatriable and tax-free in India.

However, if you send money to a normal resident savings account, you may trigger TDS or compliance scrutiny under FEMA.

Quick Summary:

• ✅ Send to NRE = No tax, no limit, minimal to no KYC/AML/FEMA compliance, no delay

• ❌ Send to resident savings account = Tax flags, FEMA breach, possible notices

NRE vs NRO for Large Transfers

• NRE Account: Best for foreign income. No Indian taxes, fully repatriable. Ideal for large bank-to-bank SWIFT transfers. Bank-to-Bank wire transfers do not have daily/monthly transactional limits relative to transfer services like Wise/Remitly

• NRO Account: Best for Indian income like rent or dividends, subject to taxes. Transfers in or out of NRO need 15CA/15CB and are capped at $1 million/year.

• Avoid resident accounts: FEMA does not allow NRIs to maintain or transfer directly to personal resident savings accounts.

Make sure to discuss and finalize the currency conversion rate with the Indian bank before wiring funds.

How to Do a Clean Bank-to-Bank Transfer

Here’s what works best:

• Use your US bank’s SWIFT wire to transfer to an Indian NRE account

• Confirm the purpose code with the receiving Indian bank (e.g., P1301 for family savings)

• Ask the Indian bank to issue a Foreign Inward Remittance Certificate (FIRC), this helps prove tax-exempt status

Avoid remittance apps (Wise, Remitly etc.) for large transfers, they have limits and weaker documentation trails. You can still negotiate better forex rates with your banks.

Will I Get a Tax Notice for Large Transfers?

Not always, but if you don’t have paperwork, you’re at risk.

You’ll want to keep:

• Source of funds (US salary slip or W2, bank statements)

• Transfer receipt (SWIFT confirmation, NRE deposit)

• FIRC + TRC (Tax Residency Certificate, if needed)

These documents help defend against:

• Section 148A notices (suspected unreported income)

• Black Money Act (undeclared foreign assets)

• FEMA violations (wrong account or repatriation path)

Common Mistakes to Avoid

• Sending money to a resident account - FEMA violation for NRIs

• Using Remitly/Wise for large transfers

• Not filing 15CB properly for NRO transfers

• Using wrong purpose codes

• Ignoring FATCA/FBAR reporting in your home country

What Is FEMA and Why It Matters

FEMA is India’s law governing foreign exchange. Most NRIs unknowingly violate FEMA by:

• Keeping resident accounts after moving abroad

• Transferring money to family-owned resident accounts

• Not reporting large transactions properly

Banks may freeze funds or send queries if you miss FEMA rules. Make sure your residency status is updated, accounts are NRI-compliant, and purpose codes are right.

Confused About 15CA/15CB Forms?

These are mandatory for repatriating from NRO or sending from India abroad.

• Form 15CA: Declaration of remittance by the sender

• Form 15CB: Certification by a CA that taxes are paid or not applicable

Most delays happen because the CA doesn’t file 15CB correctly or the bank is confused about documentation. This is the #1 bottleneck we see for NRIs.

Still unsure how to structure your remittance tax-free or how to file form 15CA and 15CB? Speak 1-on-1 with Settleline’s Cross-Border CA, no cost, no pressure. Reserve your 10-minute slot through the Calendly link below.

We’ll help you:

• Pick the right account (NRE/NRO/RFC)

• File Forms 15CA/15CB correctly

• Ensure 100% FEMA compliance

• No tax shocks. No IT scrutiny. Just clean, compliant transfers.