Transfering money from US bank account to foreign bank account

[KUI93571]

I am a US Citizen, I have an account in US and, I have an account in India. Both are my accounts. Is there any restrictions to transfer money from US account to Indian bank account, any limits, any taxes or any reporting I have to do when I transfer or when filling tax? will it be flagged if I transfer multiple time to outside account from US or like more then certain amount?

[pk · Accepted solution]

@KUI93571 ,  generally speaking international wire transfers are not restricted  unless the amounts reach  in the millions.  US treasury would require special permission  for transfers  over a million  ( your bank is the best source for that ).

Wire transfers equal or above US$10,000 would automatically be flagged  ( SAR ) by your bank --- most are just paperwork, have no effect on anything.  I am talking about transfers to  non-sanctioned  countries or accounts or entities.   Whether you send once a  year or repeatedly , it really does not matter -- again your bank is the best source of what they permit.   My wife has sent multiple  >10K amounts to her Bank  in another country with no issue.

There is no tax consequences ( US tax purposes ) and no reporting on your part required.   However, as the amounts mount in your foreign bank account, FBAR and FATCA regulations come into effect.

Is there mor I can do for you ?

Namaste

pk

[KUI93571]

Great, this helps, I am mostly looking to transfer to Indian bank, Just wanted to know if I have to report or file any form for US tax. Not using wire from bank more of conversation services offered by Indian bank, like Money2 India, Wise, Xoom. Something about 10k. Just wanted to know if there is any limit or anything. 

[pk]

@KUI93571 , the answer is the same as when using official channels.  FBAR and FATCA rules still apply.  Also note that  for a US person   giving monies to another ,  will be construed as gift and  therefore gift rules will apply.

But since you are sending monies to your own account in India --- gift does not apply.

Is there more I can do for you ?

Namaste

pk