How to Transfer Money to Australia From India

Overview

Whether you are funding an Australian property purchase, supporting a family member studying in Australia, or migrating and transferring your savings, you need to work within the Reserve Bank of India's outbound transfer framework while meeting Australia's receiving-side requirements.

India has specific foreign exchange controls that directly affect how much you can send, what documentation you need, and what upfront tax deduction applies. This guide covers the full process from Indian sender to Australian bank account, current as at September 2026.

India's outbound transfer rules: the Liberalised Remittance Scheme

The Reserve Bank of India (RBI) governs all outbound personal foreign exchange transfers through the Liberalised Remittance Scheme (LRS). Under LRS, any resident Indian individual — including minors, through a legal guardian — can remit up to USD 250,000 per financial year (April to March) for permitted purposes without requiring specific RBI approval (RBI).

Permitted purposes under LRS include maintenance of relatives abroad, gifts and donations, travel, education, medical treatment, purchase of property overseas, investment in foreign securities, and deposits in overseas bank accounts. The limit applies per individual, so a married couple can remit up to USD 500,000 combined.

Amounts exceeding USD 250,000 per financial year require specific RBI approval, which is granted only in limited circumstances such as medical emergencies.

### Tax Collected at Source (TCS) on foreign remittances — the 2025 and 2026 changes

Under Section 206C(1G) of the Income Tax Act, authorised dealer banks and transfer providers must collect TCS on outbound LRS remittances once your cumulative remittances for the financial year pass a threshold. That threshold was raised from INR 7 lakh to INR 10 lakh with effect from 1 April 2025 (Finance Act 2025) — remittances up to INR 10 lakh in a financial year attract no TCS at all, regardless of purpose.

Above INR 10 lakh, the rates that currently apply (effective 1 April 2026, from the FY2026-27 Union Budget) are:

Education funded by a loan from a specified financial institution — 0% TCS, no matter the amount. Education (self-funded, not via a qualifying loan) or medical treatment — 2% TCS on the amount above INR 10 lakh (cut from 5% in the FY2026-27 Budget). Overseas tour packages — a flat 2%, with no minimum amount. All other purposes — including property purchases, family maintenance, gifts and investment — 20% TCS on the amount above INR 10 lakh, unchanged.

The INR 10 lakh threshold is cumulative across all your LRS remittances in the financial year, regardless of purpose or which bank or provider you use. TCS is not a final tax — it is a prepaid credit you claim back when filing your annual Indian income tax return (ITR), either against your total tax liability or as a refund. It does, however, tie up cash in the interim, which matters for the timing of a large transfer.

### Practical impact on large transfers

If you are transferring AUD 100,000 (roughly INR 55 lakh at typical rates) for a property purchase — a "general purpose" remittance, so the 20% rate applies — the TCS on the amount above INR 10 lakh would be 20% of approximately INR 45 lakh, or around INR 9 lakh. Your bank or transfer provider deducts this before the remittance goes through. You recover it at tax filing, but you need the liquidity upfront to still make the transfer.

For an education remittance of the same size, self-funded rather than loan-funded, the TCS at 2% on the amount above INR 10 lakh would be roughly INR 90,000 — a tenth of the general-purpose cost, which is exactly why the FY2026-27 Budget carved education and medical remittances out to their own lower rate.

Which transfer method is actually cheapest for India to Australia

"Best way to send money to Australia" from India isn't a single answer — it depends on the amount, whether the recipient needs cash or a bank deposit, and how fast you need it there. For a standard bank-deposit transfer, the three real options are your Indian bank's forex desk, a specialist transfer app, or a remittance network with cash-pickup reach.

Indian banks (SBI, HDFC Bank, ICICI Bank, Axis Bank) process LRS transfers through their forex desks. Most charge a flat fee of INR 500–2,000 per transfer plus GST, and apply exchange-rate markups of roughly 1.5–3% above the mid-market INR/AUD rate. Some add a separate SWIFT handling fee. Banks handle the TCS collection themselves and issue Form 27D as your TCS certificate.

Wise and Remitly are the two specialist apps most Indian senders compare directly, and it's a genuine question because they're built differently. Wise shows the mid-market rate upfront and charges a transparent, usually lower, percentage-based fee — see our full /blog/wise-australia-review-fees-limits for the current numbers. Remitly runs a promotional-rate model where a new user's first transfer often carries a very tight (sometimes zero-margin) rate with a small or no fee, and the rate widens on repeat transfers — see /blog/remitly-australia-review-fees-limits. For a one-off transfer, Remitly's first-transfer promotion can beat Wise; for repeat or larger transfers, Wise's consistent published margin is usually cheaper over time. Both handle TCS collection and are available for the INR-to-AUD corridor. Per-transaction limits with either app are typically lower than a bank's, so very large single transfers (above roughly INR 10–15 lakh) may need to be split across transactions or routed through a bank instead.

Remittance networks with physical cash-pickup reach (Western Union, MoneyGram) also offer INR-to-AUD transfers but tend to charge more for bank-deposit delivery into Australia than either a bank or a specialist app. They earn their place only if the Australian recipient specifically needs cash pickup rather than a bank deposit — see /blog/western-union-australia-review-fees-limits.

The only reliable way to compare any of these for your specific transfer is the final AUD amount quoted after fees and the exchange-rate margin — not the headline fee, and not the brand name.

Documentation required

For any LRS transfer from India, you'll need to give your authorised dealer bank or transfer provider:

A completed Form A2 (application-cum-declaration for foreign exchange transactions). Your PAN card (mandatory for LRS transactions). Your Aadhaar number (for KYC verification). Purpose documentation — an Australian university fee invoice for education, a property purchase contract for property investment, or a simple declaration for family maintenance or gifts.

For amounts close to or exceeding the USD 250,000 annual limit, the bank's compliance team may request additional supporting documents including bank statements, income proof, and source-of-funds declarations.

On the Australian receiving side, your bank may ask for source-of-funds documentation for large or first-time transfers into a new account. Keeping your Indian bank's transfer confirmation and purpose declaration on hand speeds this up.

Transfer time

Bank SWIFT transfers from India to Australia typically take 2–4 business days, passing through at least one intermediary correspondent bank, which adds time and may deduct its own handling fee.

Specialist apps often deliver within 1–2 business days for the INR-to-AUD corridor, and some offer same-day delivery if you initiate the transfer early in the Indian business day. The Indian bank's end of the process — debiting your account and processing the forex conversion — can add a day if you start outside banking hours.

First-time LRS transfers through any channel can take longer while the provider's compliance team verifies your documentation. Repeat transfers through the same channel are usually faster.

Tax and reporting on both sides

India side: the transfer itself isn't subject to income tax beyond the TCS mechanism above. If you're transferring proceeds from selling Indian assets (property, shares), capital gains tax on those assets needs to be settled before the remittance — your chartered accountant can provide a certificate confirming tax compliance, which the bank may require for asset-sale-funded remittances.

Australia side: receiving money in Australia isn't automatically taxable. The ATO looks at the nature of the funds, not the fact of receiving them — gifts aren't taxable, moving your own existing savings isn't taxable, and salary already taxed in India may qualify for a foreign income tax offset under the India–Australia Double Taxation Avoidance Agreement (ATO). Investment income and capital gains can be taxable depending on your Australian tax residency.

Separately from India's TCS system, Australian banks and remittance providers are required to report international electronic transfers to AUSTRAC as part of standard anti-money-laundering monitoring — for cross-border electronic transfers this reporting has no minimum dollar threshold and applies regardless of amount, which is different from the well-known AUD 10,000 rule that applies to travellers physically carrying cash across the border (that's a separate declaration requirement, not a remittance one). This reporting is routine compliance carried out by the institution — it isn't something you file yourself, and receiving a large transfer isn't in itself a red flag. austrac.gov.au was unreachable when this page was checked; if you want the current wording, search AUSTRAC's own site directly.

This is general information, not tax advice. For inheritances, large gifts, property-sale proceeds, or foreign income, confirm your position with a registered tax agent or the Australian Taxation Office before assuming a transfer is tax-free.

Common mistakes

Not tracking cumulative LRS usage. The USD 250,000 cap is per financial year and cumulative across every transaction and every provider. Sending USD 200,000 through your bank and then USD 100,000 through an app in the same year breaches the limit, even though each provider individually approved its own transaction.

Forgetting the TCS cash-flow impact. The 20% TCS on general-purpose remittances above INR 10 lakh can be a substantial upfront cost on a property purchase or large family transfer. Budget for it — you get it back at tax filing, but that could be months away.

Assuming the old INR 7 lakh threshold or the old 5% education/medical rate still applies. Both changed — the threshold moved to INR 10 lakh from 1 April 2025 and the education/medical rate dropped to 2% from 1 April 2026. A lot of what's written online about TCS still quotes the pre-2025 numbers.

Using a single provider for very large amounts. Indian banks sometimes offer better rates for large forex transactions (above roughly INR 25 lakh) through their treasury desk, while a specialist app may be cheaper for smaller amounts. Getting a quote from both before committing can save real money on a large transfer.

Not obtaining Form 15CA/15CB where required. For some categories of LRS transfer — particularly investment-related remittances — the Income Tax Act requires filing Form 15CA online along with a chartered accountant's certificate in Form 15CB before the remittance goes through. Your bank will tell you if this applies to your transaction.

What is the maximum amount I can send from India to Australia?

Under the RBI's Liberalised Remittance Scheme, you can remit up to USD 250,000 per financial year (April to March) for permitted purposes. This covers most personal transfer needs including property purchases, family support, education, and investment. A married couple can combine two individual limits for USD 500,000.

How much can I send from India without paying tax (TCS)?

Up to INR 10 lakh per financial year across all your LRS remittances combined, regardless of purpose. This threshold was raised from INR 7 lakh with effect from 1 April 2025. Above INR 10 lakh, TCS applies at rates that depend on the purpose of the remittance.

What TCS rate applies above INR 10 lakh?

From 1 April 2026: 20% for general purposes (property, gifts, family support, investment); 2% for education or medical treatment (cut from 5%); 0% if the education is funded by a loan from a specified financial institution; and a flat 2% on overseas tour packages. TCS is fully refundable when you file your Indian income tax return.

Is Wise or Remitly better for sending money from India to Australia?

It depends on the transfer. Remitly's first-transfer promotional rate can beat Wise's published margin on a one-off transfer, but Wise's rate stays consistent on repeat or larger transfers where Remitly's promotional pricing no longer applies. Compare the live quoted AUD amount from both for your actual transfer size rather than assuming either is always cheaper.

How do I get the best INR-to-AUD exchange rate?

Compare the rate your bank's forex desk quotes against a specialist app like Wise or Remitly. Focus on the total AUD the recipient actually receives after all fees and the rate margin, not the headline exchange rate. For very large transfers, ask your bank's treasury desk whether it will negotiate a better rate.

Do I need to tell the ATO about money received from India?

You don't need to proactively report an incoming transfer, but keep documentation proving the source and nature of the funds. Australian institutions already report international electronic transfers to AUSTRAC as routine anti-money-laundering compliance, regardless of amount — that's separate from any tax obligation, which depends on whether the money is a gift, your own savings, or foreign income.

Can I send money from India to Australia for a property purchase?

Yes. Property purchase abroad is a permitted purpose under LRS. You'll need to give your bank the property contract and the remittance is subject to the general 20% TCS rate above the INR 10 lakh threshold. The USD 250,000 annual cap still applies.

What happens if I exceed the USD 250,000 LRS limit?

Exceeding the limit without RBI approval breaches the Foreign Exchange Management Act (FEMA) and can attract penalties. If you need to send more, ask your bank whether a specific exemption or prior RBI approval applies to your circumstances before attempting the transfer.