With an increasing number of Indian nationals migrating to Canada, looking for a reliable service prioritising secure and speedy transfers conveniently at a low cost becomes pivotal. Whether you want to support your family, help pay Loan instalments, or even invest in stock markets overseas, using the right fund transfer service is necessary.
Nowadays, many banks allow you to transfer funds worldwide in different currencies, including USD, GBP, CAD, HKD, and EUR. To transfer money from India to Canada, you should know the purpose, the recipient’s bank details, and the transfer amount. Here are some frequently asked questions on fund transfers:
How do you transfer money overseas?
You can transfer funds from India to any country using the bank’s designated app or by approaching a money transfer provider. Log on to the app, click the Fund Transfer option, and enter the amount, recipient Bank Account, SWIFT code, and other details as prompted. Click on Transfer Now to initiate the transaction. It takes a few days to a week to reach the recipient.
What are the documents required?
If you want to send money from India to USA or any other country, enter the beneficiary details, like name, account number, address, country name, bank name, bank address, SWIFT code, and Transit number for the recipient account. The bank may also ask you to present documents according to the purpose of the remittance.
How long does it take?
When using the International Money Transfer app, the payment takes approximately two hours to get authorised. Post-authorisation, the amount gets transferred to the recipient within two working days.
Are taxes applicable?
From 1 October 2023, taxes will be applicable on all forex remittance transactions under LRS exceeding the threshold limit of Rs. 7 lakh in a financial year. Suppose aggregate foreign currency purchases under LRS for medical or education (funded by self) during the financial year exceeds Rs. 7 lakh. In that case, the customer bears the applicable Tax Collection at Source (TCS) at 5% of the amount.
In cases where the international money transfer under LRS is for pursuing education abroad, the applicable TCS is 0.5% on the amount exceeding Rs. 7 lakh. Foreign currency purchases under LRS for any purpose besides education and medical remittances shall attract TCS at 20% on the amount exceeding Rs. 7 lakh.
How much money can you transfer?
The Reserve Bank of India defines the maximum amount you can remit out of India. As a resident Indian, you can transfer up to $2,50,000 or its equivalent in one financial year. If you are an NRI, there is no limit on transferring funds from the NRE Account.
Through an NRO Account, you can transfer only up to $1 million or equivalent per financial year. Additionally, no transaction processed through online or mobile app channels can exceed $25000 or its equivalent.
