Best Ways to Transfer Money Online Internationally

Send money abroad from India online: which route costs you less?

This topic comes down to three questions: how to send money abroad from India online, which route costs the least, and how much you can send. The answers go like this. Use an authorised dealer. Compare the amount that lands. Stay under the RBI limit of USD 250,000 a financial year. From 1 April 2026, tax collected on education and medical remittances above ₹10 lakh is 2%, down from 5%. LuLu Forex, an RBI-authorised Category II dealer, runs an outward remittance service for these transfers.

Run a three-step check before any transfer. Confirm your purpose and yearly total. Work out the tax on the part above ₹10 lakh. Ask in writing what the beneficiary receives and what the quote excludes. The route that wins is the one that delivers the most after tax and charges.

Why does the amount that landed differ from the amount you sent?

The total cost of a transfer can be higher than the on-screen fee.

1. The exchange rate often includes the provider's margin. Compare it with the mid-market rate for the day you send.
2. Your funds go via the beneficiary's bank and, if required, intermediary banks. Check what the quote includes and ensure you get confirmation in writing. Ask, if you have any doubts, whether intermediary bank charges are taken into account in the quote.
3. Once your total remittances for a financial year exceed ₹10 lakh, you will be subject to tax collected at source.
4. Mistakes in completing forms can cost you a lot. The name of the beneficiary, the account number, and the SWIFT code have to be consistent with the destination account.

What kinds of money transfer options are there internationally from India?

Most transfers are made through one of three methods. Always get at least two different quotes on the same day before making a decision. This way, you can find out the maximum amount you would get without being charged too much.

Bank wire transfer

The bank wire transfer method involves the transfer of money from your Indian bank account to an overseas bank account. Opt for this mode if you have an existing forex service with a bank and prefer to maintain just one banking relationship with that particular bank. Before signing the declaration, obtain the rate, charges, and net amount.

Licensed forex dealer

LuLu Forex, an RBI-licensed Category II dealer, has an LRS outward remittance facility. If you change your service provider, the tax rate and the maximum allowable remittance for a financial year remain the same. But changing your service provider may lead to changes in the exchange rate and in the kind of help with documents that you will receive.

App-based services

Ensure that the operator through which you will make the transfer is RBI-authorised, and that you can see on the app what amount the beneficiary will receive.

What are the LRS limit and TCS implications for your transfer?

The yearly limit

The maximum amount a resident individual may remit for permitted current or capital account transactions is USD 250,000 per financial year (April to March). The limit can be higher for education, medical treatment, and emigration when the university, hospital, or destination country requires more.

TCS on foreign remittance: tax collected at source

Section 394 of the Income-tax Act, 2025 replaced Section 206C(1G) from 1 April 2026.

The rules:

1. Up to ₹10 lakh of remittances in a financial year: no TCS.
2. Above ₹10 lakh, education or medical: 2%.
3. Education funded by a loan from a financial institution: nil on the loan amount.
4. Above ₹10 lakh, any other purpose, such as gifts or investments: 20%.

TCS is not a fee. The dealer collects it against your PAN; you claim credit when you file your return, and any excess is refunded.

How do you send money abroad with LuLu Forex online?

LuLu Forex makes the request for outgoing remittance digital, starting from sign-up through to order confirmation. There are 10 steps to the process:

1. Start your remittance: Type in the amount, select the destination country, and the reason for the transfer.
2. Sign up or log in: Use your registered mobile number to register or log in, and complete the OTP verification.
3. Order Details: Fill out the order Information. Fill in the remittance amount, currency, purpose, and other transaction information that is requested on the form.
4. Sender Details: Enter the sender's information. Fill in your name, contact, and other information as requested.
5. Beneficiary Details: Include the names of the beneficiaries. Fill in the name, bank account, and other banking details of the beneficiary.
6. Upload Documents: Attach the documents that support your remittance.
7. Declaration & Aadhaar Verification: Read and agree to the declarations, then proceed with Aadhaar verification.
8. Payment Method: Select a payment option. Choose one of the options available. Review the order summary.
9. Preview & Order Summary: Check the Order, Beneficiary, Document, and Payment information. Please read everything before moving forward.
10. Secure Payment & Order Submission: Navigate to the payment website, pay the amount, place the order, and get an order confirmation.

Before you begin, have the following documents in hand for your purpose: registered mobile number, Aadhaar, PAN. Would you prefer to send by hand? The branch locations page lists the branch addresses. Send money out of the country with LuLu Forex. 

Which route fits your transfer?

• Tuition paid from an education loan: TCS is nil, so the rate and charges decide.
• If the tuition amount paid from savings is above ₹10 lakh, the excess is subject to 2% TCS at every provider, so check the net amount.
• An investment or a gift above ₹10 lakh is subject to 20% TCS on the amount exceeding ₹10 lakh. It is advisable to consult a chartered accountant before processing the transaction.

If you transfer ₹10 lakh or less in a financial year, no TCS applies. Choose a provider based on the rate and the service.

Why LuLu Forex

1. LuLu Forex is a Category II dealer in foreign exchange authorised by the Reserve Bank of India, with licence number KOC-ADII-0021-2023.
2. LuLu Forex has 32 customer engagement centres across India.
3. Education, family maintenance, gifts, medical treatment, and eligible travel payments are some of the purposes for which you can make a remittance.
4. LuLu Forex has a team to walk you through your documentation, exchange rate, and procedure.

FAQs

How do I send money abroad from India online?

Pick an authorised dealer or bank. Submit the purpose, beneficiary details, and amount; complete KYC; and pay in INR. At LuLu Forex, you do this online in the ten steps above, from sign-up to order confirmation.

What is the LRS limit per year?

The limit of the Low-risk source (LRS) is USD 250,000 per resident individual per financial year. However, this limit may be exceeded when the money is intended for education, medical treatment, or emigration to meet the requirements of the university, hospital, or the country of destination. Other cases above the cap need RBI permission.

Does TCS apply to every transfer?

No. Nothing is collected until your remittances in a financial year pass ₹10 lakh. Above that, the rate is 2% for education or medical, nil on the loan-funded amount of education, and 20% for other purposes.

Can I get TCS refunded?

TCS is a credit against your income tax, not a fee. Claim it in your return. If it exceeds your tax liability, the excess is refunded.

Which documents do I need?

PAN, KYC documents, and the documents for your purpose. The remittance declaration states the purpose and the source of funds. The LuLu Forex team walks you through the list.

Can I send money abroad for any purpose?

No. The purpose must be permitted under RBI and FEMA rules.