What rules and regulations to follow when remitting money from the US to India?

New Xiq4a4n
Jan 29 7 Comments

Super excited about sending home my first paycheck. I want to make sure I do it right in terms of paying taxes (if any) and abiding by the rules and regulations on limits of transfer and reporting. I'm on OPT in the US.

a) I intend to send money to an account jointly held with my father in India. Can I do this or do I need to remit to another account like an NRE/NRO account?

b) Is there a limit on the amount I can transfer per year? Is there a limit I can transfer per person?

c) Where and when do I need to report such transfers? My income in the US is taxed by my employer and the money I'm sending is after-tax payment.

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TOP 7 Comments
  • Microsoft fyre123
    Awww so cute
    Jan 29 0
  • Red Hat opensource
    Keep in mind there’s a federal gift tax where in if you send a person more than 15k in a year, you’ll be taxed 18-40% of the difference
    Jan 29 4
    • New OwjS77
      What if I send 15k each to my fathers account and mothers account. Would that be considered as non taxable gift worth 30k?
      Jan 29
    • eBay DEVlN
      that's wrong info, no tax at all, read it up, there is a life time exclusion of around $11M. Form 709, just fill it but again there would be zero tax so send as much you want. I generally use xoom or remitly
      Jan 29
    • Red Hat opensource
      Exclusion counts for real estate and monetary gift is not included in that 11M if less than 15k
      Jan 30
    • Red Hat opensource
      Yes 15k is per individual, so 15k each to father and mothers account is non taxable. Plus if you have a spouse you can send 30k
      Jan 30
  • New OwjS77
    I have the same questions. In the same boat as OP. Excited to move to Bay Area and start paying my loan back.
    Jan 29 0

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