Tax on money sent to India.
Money you send to India is not itself taxed on arrival — a remittance is a transfer of your own or gifted funds, not income. What can be taxed is what the money then earns: interest on an NRO account is taxable in India and has tax deducted at source, while NRE interest is exempt.
This page is general information, not tax advice, and no part of it is specific to your circumstances. Tax rates, thresholds and treaty positions change, and your own position depends on your residency and where your income arises. Check it with a qualified adviser before acting on it.
Is money sent to India taxable?
The remittance itself is generally not taxable in the recipient's hands when it is your own money moving to your own account, or a gift to a close relative. Tax attaches to income, and a transfer of funds is not income. What the money earns after it arrives is a separate question with a different answer.
Indian gift rules exempt gifts to a defined list of close relatives regardless of amount. Gifts to anyone outside that list are taxable in the recipient's hands above a threshold, so who the account belongs to matters more than the amount does.
What is TDS on an NRO account?
TDS is tax deducted at source: the bank withholds tax on the interest an NRO account earns and pays it to the Indian tax authority before the interest reaches the account. It applies to NRO interest at a rate set for non-residents. NRE interest is exempt and has no TDS.
Where India has a double taxation avoidance agreement with your country of residence, a lower rate may apply — but it is not automatic. The bank applies it only against the documentation the agreement requires, which usually means a tax residency certificate.
TDS is a withholding, not a final tax. If too much was withheld it is recovered by filing an Indian return, not by asking the bank.
Do I owe US tax on money I send to India?
Sending your own already-taxed income abroad does not create US income tax. Two things can still apply: gifts above the annual exclusion may require a gift tax return, and holding foreign accounts above certain balances triggers reporting obligations such as an FBAR filing — reporting requirements rather than tax.
What records should I keep?
Keep the transfer confirmations, showing the date, amount and both accounts, and keep them for as long as your longer filing window runs. If money is a gift, a short written record of that saves an argument years later. If you claim treaty relief on NRO interest, keep the tax residency certificate with it.