Whether it’s for education, family support, investment, or travel, sending money overseas is easier—and more regulated—than ever in 2025. But one mistake can lead to penalties or blocked transactions.

Here’s a complete, legal, step-by-step guide on how to send money abroad from India—while staying fully compliant with RBI and FEMA rules.

1. Know the Governing Rule: Liberalised Remittance Scheme (LRS)

Under the LRS, any Indian resident can legally send up to $250,000 per financial year abroad for:

• Overseas education

• Medical treatment

• Gifts or maintenance to relatives

• Travel

• Foreign investment (stocks, property, startups)

• Emigration

🧾 LRS applies to individuals only. Not for corporates or firms.

2. Documents Required to Send Money Abroad

You’ll need:

• PAN Card (mandatory)

• Valid passport and visa (if applicable)

• Purpose declaration form (A2 form)

• KYC documents (based on your bank)

• Source of funds proof (if asked)

Banks and fintech platforms usually help with form-filling digitally in 2025.

3. Choose a Legal Remittance Channel

You can transfer money through:

✅ Authorized Banks

• ICICI, HDFC, SBI, Axis offer LRS services online

• Trusted, but sometimes charge higher FX markups

✅ Fintech Platforms

• Wise, BookMyForex, Instarem, and Remitout offer lower fees, real-time rates, and easy interfaces

• RBI-licensed and bank-integrated

📲 Most allow fully digital remittance via mobile app or desktop in under 10 minutes.

4. Understand the Taxes on Outward Remittance (2025)

TCS (Tax Collected at Source) rules for 2025:

🧮 TCS applies only if total remittance crosses ₹7 lakh/year.

You can claim TCS as credit while filing your income tax return.

5. Track the Transfer and Stay Compliant

• Ask for the SWIFT receipt or transaction ID

• Make sure the purpose code matches your use case

• Declare any large transfers to the IT department if required

Checklist to Legally Send Money Abroad in 2025

✔ PAN linked
✔ Purpose matches LRS rules
✔ TCS understood and accounted for
✔ Use RBI-authorized channel
✔ Keep transaction receipts

Final Thoughts

In 2025, sending money abroad from India is 100% legal—if you follow RBI’s LRS guidelines. Use trusted remittance services, stay within the limits, and keep tax rules in mind.

Don’t risk unofficial channels or unclear paperwork. Go legal, go digital, and send money securely—without the stress.