How NRIs Send Money to India

1. Wise (Best overall for most NRIs):
- Rate: Mid-market (best available)
- Fee: 0.5–1.5% transparent
- Speed: 24–48 hours to Indian bank account
- Available from: UAE, USA, UK, Canada, Australia, Singapore, and most GCC
- Delivers to: Any Indian bank via IMPS/NEFT

2. Remitly (Best for speed):
- Express delivery: 1–4 hours to UPI or bank
- Fee: $0 first transfer, then ~$2–$4
- Rate: Slightly below mid-market
- Available from: UAE, USA, UK, Canada, and more

3. UAE Exchange House (Best from UAE — walk-in):
- Same-day delivery to Indian banks before 3 PM cutoff
- Rate: 0.3–0.8% below mid-market
- Fee: AED 0–20 flat
- INR equivalent of AED amount received same day

4. HDFC/ICICI Bank Wire (Best for NRE/NRO holders):
- NRIs with HDFC, ICICI, SBI, or Axis NRE accounts can use the bank's own wire service
- Rates may be competitive for existing account holders
- NEFT/RTGS to Indian accounts within 24 hours

NRE (Non-Resident External) Account:
- Funds held in INR but the account is funded from abroad
- Fully repatriable — you can take your money back out to any country freely
- Interest income is tax-free in India
- Best for NRIs wanting to maintain Indian savings while retaining flexibility

NRO (Non-Resident Ordinary) Account:
- Holds money earned in India (rental income, pension, dividends)
- Not fully repatriable — limited repatriation ($1 million/year with CA certificate)
- Interest is subject to TDS (tax deduction at source) in India
- Best for NRIs with Indian income sources

FCNR (Foreign Currency Non-Resident) Account:
- Deposits held in foreign currency (USD, GBP, EUR, AED etc.)
- No currency risk — your deposit stays in original currency
- Interest tax-free in India
- Good for NRIs who want Indian banking without INR exposure

Practical recommendation: Open NRE account for sending money home. Use major Indian banks (HDFC, ICICI, SBI, Axis) — they have NRI services teams and offer direct transfer from UAE/Gulf accounts.

Receiving remittances in India — no tax:
Money sent by NRI to their own Indian account is not taxable income in India — it is a transfer of your own funds. No TDS, no income tax liability on the transfer itself.

Tax residency considerations:
- If you are an NRI (not resident in India for tax purposes), your income earned abroad is not taxable in India
- Ensure you do not accidentally become a resident (spending 182+ days in India in a financial year)

TCS (Tax Collected at Source) on outward remittances from India:
This affects money going OUT of India, not inward remittances. NRIs receiving money in India are not affected.

Gifts to relatives in India:
Money sent as a gift to a "relative" (as defined by Indian Income Tax Act: parents, siblings, spouse, children) — fully exempt from gift tax, no limit.

LRS (Liberalisation Remittance Scheme): The $250,000 outward remittance limit applies to Indian residents sending money out. NRIs repatriating their own funds have separate rules under FEMA.

For large transfers: Consult a CA (Chartered Accountant) familiar with NRI taxation and FEMA regulations, especially for amounts above $100,000.