I have purchased a few gadgets through a friend who is a student in the United States and the total cost of this is at around 600$. Now since he has already shipped me the purchase through USPS, i need to send him the payment but it seems like he is only accepting Wire Transfer payment and is not interested in taking the funds transfer via Paypal. I need to know how can i make a Outward Remittance and how is it possible to send the funds directly into his bank Account. Can i post him a Check in Indian Rupees which is equivalent to the payment i need to pay him or a Demand Draft issued by any Nationalized Bank? Will there be any issue regarding this like the Government taking this transaction as a Illegal one and issuing a fine on me? – Question by Reader
Whenever you plan to make a payment or send funds to a Abroad Country then this transaction would be called as Outward Remittance and these kind of transactions cannot be easily managed. Actually Indian Currency is completely managed and the Reserve bank of India keeps a close watch on all the funds which are converted from Indian Rupees to United States Dollars or any other currencies. When you bring in thousands of Dollars through Paypal or Wire Transfers ie Bank Funds Transfer from the US to India, the Reserve Bank of India has no issues with it and it would rarely ask for any documents, except adding your PAN Card Number in your Paypal Account so that all the transactions are accounted, but when you need to even send a small amount of money from India to US, the govt acts weird with a number of rules. Here is a detailed process on how to perform this.
- You need to visit a Nationalized Bank in your locality or else a Private Bank like ICICI Bank which have separate counters for these kind of NRI Services helpful for people who want to do Inter Country Transactions.
- Next ask them to issue a Bank Check in foreign currency example USD. For this you need to have a Savings or Current Account with the Bank,
- Following which the equivalent amount of money you would like to transfer would be debited to your Bank Account.
You will need to carry your Bank Account Passbook, Check Book for issue of check to debit the Bank Account, The invoice Note or Purchase Slip where the funds information is listed for payment.
The above listed process would look very simple because you just need to visit the bank and advice them to generate a Check in foreign currency but this won’t work always and there are risks along with delay involved. This is because you need to later send the Check via Post to the receiver and then they have to deposit the same in their Bank Account for clearance which would take more time.
A Indian National who wants to transfer their money to the United States needs to follow certain conditions and cannot remit more than 25,000 USD. If the payments are made from your Savings ie from your Tax Paid Income then you dont have to pay any other taxes on these transactions but if its for Business or a service offered, then the payment made would be charged with an extra 12.24% of Bank Charges or commission.
Services like Western Union, Ikobo, Xoom & MoneyGram won’t be applicable here because they are not allowed legally by the government. Its always adviced to confirm the fees the banks would charge you for the Wire Transfer Payments.https://www.amitbhawani.com/blog/wp-admin/post-new.php
Alternative Ways :
- Paypal – You can directly send payments through Paypal, but in this case the receiver should also have a Paypal Account and this service even though is almost instant would be charging you high amount of Transaction Fees when you plan to send higher amount of funds.
- ICICI Outward Remittance – This is a excellent service from India’s Biggest Private Bank which offers you with Wire Transfer or Foreign Currency Demand Draft where you will be asked with the following details of the Receivers Bank Account – Bank Name, SWIFT Code, Routing Number, Bank Account Number etc. The service attracts a fees like 20$ when you send a amount of around 1000 USD and the correct details can be given by the Bank only.
There is a company which wanted to send funds to me and they can only send funds to us,uk,canada, newzealand bank accounts..how can i get these funds in india. I dont have any bank account in these countries and they are asking for bank account in these countries
Hi Ashish
Is this a legitimate transaction from an overseas company ?
I received some Indian money that is sitting in an Indian bank and I need to transfer this to my New Zealand account. I am a New Zealander and live here.
If you get any further information in response to your question please let me know.
Perhaps there is a common solution to your problem and mine.
Ronaldo
kindly let me know as there are 11 indian approved banks by paypal ,so if i have a debit card of one of these banks can i send and do money tranfer to my paypal account thru that debit card ?This debit card has the visa logo which is acceptable to paypal.Kindly eliminate my doubt and query.
subhash
Actually not all the Debit Cards are accepted by Paypal. Hence you need to actually try to add the Card and see if its being verified or not. Though the most chances are they won’t accept it because Debit Cards cannot be directly debited for funds by the payment processor unlike the credit cards, hence you should try to get a Credit Card for these kind of transactions.
Many of the Bank Debit Card is not accepted by Paypal as they have restricted access set by RBI for using them for online transaction.
Whats the heck going on with RBI?? They everytime forces Paypal to do this and that to trouble happy Paypal customers.
Also i have read in one of your articles for an outward remmitance from india to US wherein ICICI bank is a reliable ,secure and fastest way to tranfer funds abroad ,but on my repeated requests to the US people to furnish me details of their bank account/ name of the bank/branch /swift code /routing number /and complete postal address in order to send them the foreign currency bank demand draft has been a futile effort as not a single person or company is inclined to furnish these details in order to do the transaction of sending the payment to buy the offered system. Even when I contacted ICICI bank for an outward remmitance they said they require all these basic information. So kindly suggest an alternate mode of payment method .
subhash
Guess you are referring to this article – https://www.amitbhawani.com/blog/what-is-outward-remittance/
The only option then left for you is either paying through western union or else through a friend because if you plan to go for Outward remittance, then its compulsary for the bank to get all the above listed details so that the transaction can be initiated and ICICI Bank charges around 1350Rs one time fees for a single transaction for any amount of money being transferred.
I run a small web designing company. My question is …
Purchase from outside India ( In US$) from my Personal Credit Card
I) for personal use
1) Books , ebooks, tutorial CDs
2) Web Services like google Apps a/c, PPC advt.
All transaction appear in my Credit Card statement in US$ and billed in equivalent INR.
Q .1 ) What type procedure , formalities I have to complete.
————————————–
2) For Business purpose ( web / IT services)
Still I have not purchase anything in US$ for business purpose, but I want start this service
for my customer accordance with FEMA / RBI procedure. ( but unable to find information)
a) Want to buy small downlaodable sofware, which we will use to design client’s website.
b) Stock photos, template for my customers.
c) PPC advt. for my clients.
d) Buying other services ( specially form US ) on behalf of my clients.
i.e. Google Apps. : I provide Setup for free edition. Customer ask me for paid service, which cost US$50 per account. Customers are ready to buy. But Google billed only in US$. This service will be used by customers as under IT Services, and they accept only Credit card. I asked my bank they are ready to give business credit card. but unable explain how to buy above in US$.
What documents I have to submit, what type of permission I have to take from RBI , what type of rules I have to follow. This all services will come under IT Services. Certainly help clients to do business in proper way.
Regards
There is nothing you will have to purchase and you can directly pay with your Credit Card and proceed with the payments. If you are getting paid in USD in bulk then you will have to apply for Software Licenses or other related stuff which a Chartered Accountant can tell you clearly. For small amount of purchases say less than 1000$/month around you dont have to worry about anything and at the end of the year you can disclose these payments under business expenses for Income Tax purpose.
Bank transfers are definitely the way to go for money transfers. You may pay a bit more, but they are safer and more reliable.
yes it is
I am reselling the subscription of few SaaS (Sodtware as a Service) products to customers in India and abroad. I am making payment to this company in USD which is located in Ireland while the other company is located in USA. They want us to make wire transfer to their account – whatever the amount may be.
My question is about TDS or Tax Deducted at source – do we need to deduct tax at source? If yes – at what rate? If tax is involved – the whole business will become non profitable. Do you have any idea – how the taxes on SasS or cloud based products (which work on monthly or yearly subscription) are handled – for own business or resale purpose?
Regards
One addition – I have a vendor in Singapore as well – Please include in your reply how the Singapore will be handled (in addition to USA and Ireland)?
Trust me, ICICI bank is a stupid bank as well. I’ve been waiting for a wire sent using ICICI bank about a month ago to an international country I’m in and it STILL hasn’t come through.
Stupid country, stupid laws .. yet they have big dreams of becoming superpowers.
Your comments say a lot about you.
no Shoeb is right, trying to make an outward remittance in India is like trying to find a Unicorn. The government or whoever comes up with these regulations better make some changes instead of making normal folk jump through hoops for such a simple service.
Hi , I read your wonderful blog …and found some really nice suggestions
I too have a few questions on which I seek your help.
I am an Indian resident and I am moving to US from India next month as a part of company transfer.
As of now I have savings bank account with Punjab National Bank in India
I want flexibility of both withdrawals and remittances/credits both in US(for me) and India (for my parents)
Also ,i want to manage my funds in such a way that if i come back to india after 3 years , i can transfer all my savings in US back to india OR if i decide to stay in the US indefinitely I have access to all my funds in US itself (including my current savings in my account rite now)
this is my plan
1.Open both NRE & NRO accounts with PNB
2.Transfer all my funds in saving account to NRE account (except about Rs. 10000 which i will put in NRO account – the bare minimum required to open the NRO account)
so NRE- lets say Rs.90,000 and NRO – Rs.10,000 (given I have 1 lakh in savings right now)
Go to US
3. I would then deposit all my savings in US to my NRE account(fully repatriable)
4. Whenever need be (for my parents) transfer money from NRE to NRO(thru online banking), so that they can withdraw using the NRO account debit card.
5. In case i decide to come back, I transfer all my funds from NRE to NRO and then use those funds in India
6. In case i dont come back , I will withdraw my NRE account funds as they are repatriable and use them in US
I have chalked out this plan based on research in last 4-5 days.Does this look alright to you or are there any issues with the above
I am not sure about point 2 , as in all my funds in my domestic savings account-would they be transferred to NRE account ?? (given the govt norms on outward remittances, is there any limit ??)
Please let me know ASAP
Thanks
Hey dude! Do u have any idea to open a bank account in USA? Any tried it?
Hi,
I am my friend are working in Singapore. He is asking me for some money in SGD and he wants to transfer the equivalent in INR in my indian account. Will that attract any kind of tax to me in India? Is it legal? if yes, any limit set for these kind of transaction.
Thanks in advance.
hi ,
I need to sent to 1000 Euro To Switzerland .in a name of a compny
and i want to sent it via my icici bank its there any complexion or any thing as the total amount is more then 50000rs as you all now current rate of euro is about 63rs so it would be around 63000rs + icici bank charges . please guide me as soon as possible
thanks
I would like to thank you Amit for your information and posting such useful information. It will help me to transfer money abroad.
Thanks again!!!!
how can i transfer money in india my father deposit THE ROYAL BANK OF SCOTLAND INTERNATIONAL i want transfer in indian bank tall me what i do please
I have a international debit card of hdfc bank written master card on it.. so can i use for shopping on USA site as a credit card for payement.
Sir,
I am selling a used laptop to an individual who is living in scotland. He plans to transfer money to bank account which is in icici and his account is in RBS. Now when I will ship the product am I applicable to any custom duties? also sir would there be any income tax issue and what will be the transaction charges taken by the my bank to convert $ into rupees. Please help me out sir.
Hi,
I am sending an amount of 15000 pounds to UK for my tuition fees. An initial amount of GBP 1000 pounds was send through by me but attracted GBP 25 by the receiving bank. Is the charges cut by the receiving bank a fixed rate or does it depend upon the money? If the latter, would sending a demand draft be is costly.
Please advise 🙁
Is there any limit to send payment outside India Using Paypal in a financial year??
If we use ICICI funds transfer abroad option through internet banking to Singapore DBS bank, will there be tele-verification with the registered mobile number of the ICICI account? I am asking this because the account holder is abroad and can’t really receive the call.