- Do you need to send more than $10,000 to India? Compare money transfer services to get a quote today
- There are certain laws and taxes you should know about when sending large amounts of money to India
- A money transfer service is often the most economical way to move funds overseas, while cash transfers are the fastest
Sending money to family, friends, or businesses in India can be costly and time-consuming, particularly when you’re using your bank. There are also certain taxes and laws you should know about, which can make the process complicated.
In this guide, we'll give you the basics of sending money to India from Australia [AUD to INR].
Inside this guide
How much money can you send to India from Australia?
Currently, India and Australia do not limit how much money you can send or receive. However, money transfers over $10,000 are scrutinised more closely by regulators.
To deter fraud, most banks have a limit of $10,000 per transaction. Some, but not all, money transfer services also have transaction limits.
Do you need to send money overseas? Compare your options here.
How much does it cost to send money to India via bank?
Sending money from your bank makes sense if you already have the funds in your account. However, this is may not be the most economical option. Use the table below to check the limits, fees, and processing times of Australia's biggest banks.
|International transfer fee||$10-$32||$10-$30||$6-$15||$9-$32|
|Processing time||1-3 business days||1-3 business days||1-3 business days||2 business days|
Alternative ways to send money to India
The three main options for transferring money to India are bank transfers, cash transfers, and using a specialist money transfer service. Each of these options has its advantages and disadvantages.
If you need to send money to India ASAP, an emergency cash transfer may be your best solution since your recipient can often pick up the money within minutes. Cash transfer services are also beneficial for those who don’t have a bank account. You can pay cash at an agent location in Australia, and the recipient can pick up the cash at an agent location in India without using a bank transfer. However, you may pay extra for this convenience.
Using a money transfer service is often the most economical way to move funds overseas, however, this method may take longer.
You can also send money overseas using online payment systems. PayPal is a well-known online payment system.
Digital wallets or E-wallets provide you with yet another way to transfer money overseas, the most common options include Google Pay and Apple Pay.
What money transfer services send money to India from Australia?
Money transfer companies are an alternative to banks for moving personal or business funds overseas. You can compare money transfer services that send funds to India using the table below.
Laws and Taxes
There is no tax on money sent from Australia to India to blood relatives. A “blood relative” — such as a spouse, child, grandchildren, sibling, or in-law — will not pay tax on any amount you send them. The same goes for money sent as part of an inheritance or as a wedding gift.
However, when you send more than 50,000 rupees (about $AU 894.50) to someone in India who isn’t defined as a blood relative they will be subject to a gift tax, as regulated by India’s Income Tax Department.
It is important to note this, especially if you are an Australian business sending money to an Indian company.
The ATO may also investigate all money transactions and ask you about their tax implications.
What to compare to get the best deal
Consider the following when sending money to India from Australia:
- Fees: How much will the transfer cost and who pays the fees? Will your recipient receive the entire amount?
- Delivery methods: Does your recipient need a bank account or app?
- Payment options: Can you pay in cash or with a credit card? Do you have to top up an app or make a bank transfer to your payment method?
- Exchange rates: How much Indian rupee (INR) are you getting for your Australian Dollar (AUD)? Is the bank or money transfer company offering the market exchange rate or a bank rate?
- Transfer speed: When will the money arrive?