How to transfer money to Australia from India

Overview

The India-to-Australia corridor is one of the busiest remittance routes in the region. Whether you are funding an Australian property purchase, supporting a family member studying in Australia, or migrating and transferring savings, you will need to work within the Reserve Bank of India's outbound transfer framework while meeting Australia's receiving requirements.

India has specific foreign exchange controls that directly affect how much you can send, what documentation you need, and what upfront tax deductions apply. This guide covers the full process from Indian sender to Australian bank account.

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 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

Under Section 206C(1G) of the Income Tax Act, authorised dealer banks and transfer providers must collect TCS on outbound LRS remittances. The current rates as of the 2024–25 financial year are:

For remittances related to education funded by a loan from a financial institution, TCS is 0.5% on amounts above INR 7 lakh. For remittances related to education (without a loan) or medical treatment, TCS is 5% on amounts above INR 7 lakh. For all other purposes — including property purchases, family maintenance, gifts, and investment — TCS is 20% on amounts above INR 7 lakh (Income Tax Act).

The INR 7 lakh threshold is cumulative across all LRS remittances in a financial year, regardless of purpose or provider. TCS is not a final tax — it is a prepaid credit that you claim back when filing your annual Indian income tax return (ITR). However, it does tie up cash in the interim, which affects your planning for large transfers.

### Practical impact on large transfers

If you are transferring AUD 100,000 (approximately INR 55 lakh at typical rates) for a property purchase, the TCS obligation on the amount above INR 7 lakh would be 20% of approximately INR 48 lakh, or roughly INR 9.6 lakh. This amount is deducted by your bank or transfer provider before the remittance goes through. You recover it at tax filing, but you need the liquidity upfront.

Fee comparison by provider type

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

Specialist transfer services operating in India (including Wise, Remitly, and others with RBI-authorised partnerships) typically charge lower flat fees (INR 200–1,000 or a percentage-based fee of 0.3–1.5%) and offer exchange rates closer to mid-market. These providers also handle TCS collection. Transfer limits per transaction may be lower than with banks, so very large transfers (above INR 10–15 lakh per transaction) may need to be split across multiple transactions or routed through a bank.

Remittance providers with physical networks (Western Union, MoneyGram) offer INR-to-AUD transfers but tend to charge higher fees for bank-deposit delivery to Australia. They can be useful for smaller remittance amounts where convenience outweighs cost.

Documentation required

For any LRS transfer from India, you will need to provide your authorised dealer bank or transfer provider with:

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 — such as 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 request source-of-funds documentation for large or frequent transfers, particularly if you are a new account holder. Having your Indian bank's transfer confirmation and purpose declaration ready streamlines this process.

Transfer time

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

Specialist services often deliver within 1–2 business days for the INR-to-AUD corridor. Some offer same-day delivery if the transfer is initiated early in the Indian business day. However, the Indian bank's end of the transaction (debiting your account and processing the forex conversion) can add a day if initiated outside banking hours.

First-time LRS transfers through any channel may take longer as the bank's compliance team verifies your documentation. Subsequent transfers through the same channel are usually faster.

Tax implications on both sides

India side: The transfer itself is not subject to income tax beyond the TCS mechanism described above. However, if you are transferring proceeds from selling Indian assets (property, shares), the capital gains tax on those assets must be settled before the remittance. Your chartered accountant can provide a certificate confirming tax compliance, which the bank may require for remittances funded by asset sales.

Australia side: Receiving money in Australia is not automatically taxable. The Australian Taxation Office treats incoming transfers based on the nature of the funds. Gifts are not taxable, own savings are not taxable, and salary income that has already been taxed in India may be eligible for a foreign income tax offset under the India–Australia Double Taxation Avoidance Agreement (ATO). Investment income and capital gains may be taxable depending on your Australian tax residency status.

Common mistakes

Not tracking cumulative LRS usage. The USD 250,000 cap is per financial year and cumulative across all transactions and providers. Sending USD 200,000 through your bank and then USD 100,000 through a transfer service in the same year will breach the limit, even if each provider independently approved the transaction.

Forgetting TCS cash flow impact. The 20% TCS on amounts above INR 7 lakh can be a substantial upfront cost. Budget for this when planning a large transfer — you will get it back at tax filing, but that could be months away.

Using a single provider for very large amounts. Indian banks sometimes offer better rates for large forex transactions (above INR 25 lakh) through their treasury desk, while specialist services may be cheaper for smaller amounts. Getting quotes from both before committing can save meaningful sums on large transfers.

Not obtaining Form 15CA/15CB for certain transfers. For some categories of LRS transfers (particularly investment-related), the Income Tax Act requires filing Form 15CA online and obtaining a chartered accountant's certificate in Form 15CB before the remittance. Your bank will advise 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.

Will I be charged TCS on my transfer?

Yes, if your total LRS remittances in the financial year exceed INR 7 lakh. The rate is 20% for general purposes, 5% for education/medical, or 0.5% for education funded by a loan. TCS is fully refundable when you file your Indian income tax return.

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

Compare the rate offered by your bank's forex desk with rates from specialist transfer services. Focus on the total AUD received after all fees and rate margins, not just the headline exchange rate. For very large transfers, ask your bank's treasury desk for a negotiated rate.

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

You do not need to proactively report incoming transfers, but you should keep documentation proving the source and nature of the funds. The ATO may ask for an explanation during a review, particularly for large or frequent transfers.

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

Yes. Property purchase abroad is a permitted purpose under LRS. You will need to provide the property contract to your bank and comply with the TCS requirements. The USD 250,000 annual cap applies.

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

Exceeding the limit without RBI approval is a contravention of the Foreign Exchange Management Act (FEMA) and can result in penalties. If you need to send more, consult your bank about whether an exemption or prior RBI approval applies to your situation.