Indian Government Announces Tax Exemptions For Foreign Investors

Sending money overseas is a lifeline for millions across the US. As digital transfers grow and money crosses borders faster than ever, 2025 brings a new wave of attention from regulators. The spotlight? Remittance tax planning.From updated reporting rules to shifting tax thresholds, financial advisors are keeping a close eye on what these changes mean for everyday senders. Know that transferring money is still secure and straightforward if you know the rules.In this article, we’ll walk you through the latest remittance news, what’s changing in the tax landscape, and simple steps you can take to stay compliant and confident. Today’s Remittance StoryWhen we talk about remittances, we mean the money sent by individuals in the US to support family, friends, or business contacts abroad—often through banks, online platforms, or money transfer services. For millions of immigrants and expats, these transfers go far beyond simple transactions. They represent vital support for education, healthcare, housing, and everyday needs back home.The US stands as one of the largest sources of outbound remittances globally. Recent updates in remittance news show billions of dollars flowing each year to countries like India, Mexico, the Philippines, and China. These funds significantly contribute to household incomes and help sustain local economies. Given their importance, changes in US remittance policy can have wide-reaching effects.US Remittance Taxation: How It Currently WorksNow that we understand the importance of remittances, let’s explore how the US tax system treats these money transfers. Understanding the rules can ease concerns and help ensure your transactions stay compliant.Generally, the IRS considers most personal remittances, such as sending money to family members abroad, as gifts rather than taxable income. As a result, these transactions typically do not create a tax liability for the recipient.However, larger transfers do come with reporting requirements:If you gave more than $17,000 to an individual in 2024, you are required to file Form 709 (United States Gift Tax Return). This doesn’t automatically mean you’ll owe gift tax—it simply informs the IRS that your gift exceeds the annual exclusion.In some cases, you may need to file Form 3520 if you receive large foreign gifts or inheritances, especially if they exceed $100,000 from a nonresident individual.Also, any transfer over $10,000, even if not taxable, may be subject to Bank Secrecy Act (BSA) reporting, intended to prevent money laundering and financial crimes. This is a compliance requirement, not a tax.The good news? Most personal remittances fall below these thresholds and remain non-taxable and uncomplicated.2025 Tax Plan Updates: What’s Changing?In 2025, a fresh wave of regulatory changes is beginning to reshape how remittances are taxed and reported in the US. Staying updated is essential for keeping your transfers smooth and stress-free.3.5% Excise Tax on RemittancesA major proposal introduces a 3.5% excise tax on remittances sent by non-US citizens or nationals. This tax applies to every transfer, no matter how small. Money transfer providers will collect this tax directly, making the process easier for senders.Enhanced Reporting and TransparencyTo support greater financial clarity, the IRS is introducing upgraded digital reporting systems. These tools aim to quickly flag suspicious activity, helping authorities monitor remittances more effectively without disrupting regular users.Tighter Controls on Crypto and Digital WalletsWith digital assets on the rise, new rules will require brokers to report crypto sales and exchanges using Form 1099-DA starting January 1, 2025. Transfers via digital wallets will also come under closer watch to ensure proper tax reporting.State-Level Rules and AI MonitoringAdding another layer, several states may implement their own remittance taxes or regulations. At the same time, the IRS plans to use artificial intelligence to detect unusual or potentially fraudulent transactions for review.By understanding these evolving regulations, you can plan your remittance strategy accordingly, keeping your money flowing efficiently and in full compliance throughout the year.Impact of New Tax Plans on Different GroupsWith the 2025 tax updates coming into play, it’s important for both senders and recipients to understand how these changes may affect them. Let’s explore what different groups can expect and how to stay ahead.For Indian, Filipino, Nigerian, and Other Diaspora SendersUpcoming changes may bring enhanced documentation and clearer thresholds for tax-free transfers. While this means senders may need to stay more informed and mindful of their transfer limits, it also opens the door to more transparency and smoother compliance. By maintaining organized records and consulting with financial experts, senders can continue transferring funds with confidence and peace of mind.For Recipients in Home CountriesWhile recipients typically don’t owe US taxes on incoming remittances, increased oversight could lead to temporary holds or delays as banks in home countries verify transaction legitimacy. This can cause unnecessary stress or timing issues. On top of that, currency conversion fees and local tax policies might shift in response to these US changes, creating added layers of complexity. Staying informed about local financial regulations can go a long way in avoiding unpleasant surprises.These new policies are a shared concern, so both senders and recipients need to remain alert and proactive. By staying in tune with the latest remittance developments, you can help ensure smoother, worry-free transfers for everyone involved.What Financial Advisors RecommendAs remittance policies evolve, staying ahead doesn’t have to be stressful. A few practical habits can help you manage your transfers confidently and avoid complications down the road.Keep Track of TransactionsMaintaining a record of all your transfers is your first line of defence against confusion during tax season. Clear documentation can be a lifesaver if questions ever arise. Many senders now use digital platforms to stay on top of things. Tools like CompareRemit allow you to track transfer amounts and fees with ease, helping you stay informed without extra effort.Know the Legal LimitsIt’s equally important to understand when your transfers might cross regulatory thresholds. At present, transactions above $10,000 need to be reported, but as 2025 tax updates roll in, these numbers could change. Financial advisors recommend being aware of these shifts and suggest speaking with an expert for personalized guidance. The right advice can help you plan better and stretch your remittance value while staying within the law.By staying organized and proactive, you can send money abroad without second-guessing. A little planning now can save you time, stress, and money in the long run, making every transfer count.Staying Ahead With Remittance NewsAs remittance rules evolve in 2025, one thing remains constant—being informed is your best financial tool. Whether you're sending money to support family, invest back home, or meet personal obligations, understanding the latest tax changes and reporting requirements helps you plan with confidence.Platforms like CompareRemit are designed to support this approach. From real-time exchange rates to timely news and practical tools, they help you navigate cross-border transfers smartly, so you can focus more on your goals and less on the paperwork.Staying ahead isn’t just about knowing the rules, it’s about using that knowledge to make better decisions for you and your loved ones.Frequently Asked Questions (FAQs)Q1. What are the penalties for failing to report large remittances?If you don’t report remittances that exceed the IRS threshold, you could face civil penalties or audits. For instance, failing to file Form 709 (Gift Tax Return) when required may result in fines, even if no tax is owed. In more serious cases, this could trigger further investigation by the IRS.Q2. Can remittances impact my US immigration or visa status?Yes. Sending unusually large or frequent remittances without a clear source of income might raise questions during immigration reviews or visa renewals. It's important to ensure all transfers are well-documented and consistent with your declared income.Q3. Do remittances affect eligibility for government benefits in the US?Possibly. If you're receiving need-based government benefits (like Medicaid or SNAP), large outgoing remittances could lead to a review of your financial activity. Authorities may question how you can afford to send money abroad while receiving assistance.Q4. Are there any remittance exemptions for students or dependents?No specific exemptions exist for students or dependents under IRS rules. However, if you're sending money for education or living expenses, the same gift and reporting thresholds still apply. It’s advisable to keep receipts and explain the purpose of funds if requested.Q5. Can I deduct remittances from my US taxes?Generally, no. Personal remittances sent to family or friends do not qualify as tax-deductible expenses under IRS guidelines. However, if the money is sent as part of charitable giving through a registered 501(c)(3) organization, it may be deductible with proper documentation.

Sending money abroad might seem puzzling for some, but it is undoubtedly secure. One key component that makes international money transfers so secure is the SWIFT network, which is used for most cross-border transactions.If you are wondering what a SWIFT code or bank identification code is, how it works, and why it is so important, you have landed in the right place. In this guide, we will tell you everything that you need to know about SWIFT codes and how they ensure your international transfers are secure and reliable.What Is the SWIFT System?SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication. It is a global messaging system used by banks and other financial institutions to exchange information smoothly, accurately, and securely.The system doesn’t perform the transfer itself—it simply passes along the instructions for fund transfers between banks and, in some cases, through intermediary institutions as well.What Is a SWIFT Code?A SWIFT code, famously called Bank Identification Code (BIC), is a unique identifier assigned to banks and financial institutions globally. It is used to send and receive funds internationally and to securely communicate between banks.Each SWIFT code is typically 8 to 11 characters long and contains information about the bank, its country, city, and branch. It is an alphanumeric code.For example, the SWIFT code for Wells Fargo in the US is WFBIUS6WFFX. The first four letters represent the bank, followed by the country code. The next two characters are the city code, and the final four are the branch code.Why Are SWIFT Codes Important?Think of SWIFT codes as your bank's international address. Just like you need a street address to send or receive a letter, your bank also needs a SWIFT code to transfer money internationally.The SWIFT code ensures that every time you send money internationally, it reaches the right place. Whether you are sending money back home to your loved ones or paying a business overseas, using the right SWIFT code keeps your transfer secure and smooth.How Do SWIFT Codes Work?When you initiate an international fund transfer, your bank sends a SWIFT message to the recipient's bank with the details, such as your bank account number and the amount of money you are transferring. The recipient's bank then verifies the information before processing the transfer. This process ensures your money is transferred to the right account, irrespective of where it is going.Despite the rise of real-time payments, transfers using the SWIFT system can take five days or even longer because it involves account verification. Your bank may also charge a small fee for a SWIFT payment, subject to wire transfer costs.How to Find Your Bank's SWIFT CodeFinding your bank's SWIFT code is just as simple as making SWIFT transfers. There are multiple ways to find it:Visit your bank's official website.Check your bank account statement, also known as a passbook.Contact your bank's customer service.Use an online SWIFT code checker tool.It's important to have a SWIFT code and ensure that you have the right one each time you make an international transfer. Providing the wrong SWIFT code to the bank could result in your money being sent to the wrong bank account.How to Avoid Common SWIFT Transfer Mistakes?Even minor errors in international money transfers can result in delays or lost funds. Here’s how to avoid common pitfalls when dealing with a SWIFT code:Always double-check the recipient's SWIFT code and bank details before initiating the transaction.Don't confuse the SWIFT code with an IBAN—they serve different purposes depending on the country and type of transaction.Ensure you provide complete information about the recipient or intermediary banks to avoid delay or failure in the transaction. It's a good practice to verify all requirements with the recipient's bank ahead of time so that you don't miss any essential information or steps.Common Issues and How to Resolve Them in SWIFT TransactionsWhile SWIFT is a secure and reliable system, international money transfers don’t always go as planned. Here are some common challenges and ways to resolve them efficiently:SWIFT transfers may experience delays, incur unexpected fees, or even get rejected. Delays are often caused by intermediary banks or bank holidays. To track a transaction, you can request an MT103 from your bank. An MT103 is a standardized SWIFT message used to send money internationally—it acts as proof of payment.Transfer fees may vary depending on who is paying—the sender, the recipient, or both—so it is crucial to clarify the fees upfront before confirming a transaction. Additionally, exchange rates may also differ from the market rates, so compare them beforehand.If your transfer fails, your funds are usually returned to you minus the transfer fee. It is important to use a reliable remittance service provider and keep a record of your transactions so that you don't have to worry later.What If My Bank Doesn't Have a SWIFT Code?Not all financial institutions are part of the SWIFT network. If your bank does not have a SWIFT code, it may use an intermediary bank to process the transfer.In such cases, you might be charged an extra fee and experience a longer processing time. Always double-check this before finalizing your transfer.SWIFT Code vs IBANIBAN stands for International Bank Account Number. While SWIFT codes and IBANs are the same, for transferring money internationally, they serve different purposes.A SWIFT code helps identify a specific bank branch, whereas an IBAN helps identify a particular account within that bank. When transferring money to certain countries, you might need both the SWIFT code and the IBAN.Reasons to Use a SWIFT Code for International TransfersThere are three main reasons why SWIFT codes are essential for international transfers:Security: Each SWIFT code is unique, ensuring every transaction is secure and encrypted.Global reach: SWIFT connects more than 11,000 banks and financial institutions globally, making it easy to transfer money anywhere in the world.Speed: While SWIFT transfer may take some time, it is still faster than many other money transfer methods.Wrapping UpNavigating international fund transfers is simple and straightforward when you understand what a bank identification code or SWIFT number is and how it works. Using the correct SWIFT code—and IBAN where applicable—helps ensure your money reaches the correct account, smoothly and securely.Are you ready to make your next international fund transfer smooth and secure? Visit CompareRemit today to find the best exchange rates with the lowest transfer fees to send money to your loved ones anywhere in the world. Stop second-guessing and start comparing!Frequently Asked Questions (FAQs)Q: Who pays SWIFT charges?SWIFT charges can be paid by the sender, the recipient, or split between them, depending on the agreed-upon terms of the transaction. The codes used within the SWIFT messaging control this. So, the sender can choose to pay all fees, the receiver can pay all fees, or they can share the fees.Q: Is SWIFT proof of payment?A SWIFT code identifies the receiving bank, but it is the MT103 SWIFT message, generated during the transfer, that serves as the actual proof of payment. This document outlines key transaction details, confirming the transfer has been initiated and processed.Q: What is the SWIFT payment fee?SWIFT payment fees are variable. They consist of charges from the sending bank, potential intermediary banks, and the receiving bank, with additional costs possible for currency conversion. These fees fluctuate based on the transfer amount, destination, and the banks involved.Q: Is SWIFT code the same for all branches?No, SWIFT codes aren’t always the same across all branches of a bank. Some banks use one universal code, while others assign unique codes to each branch. If in doubt, it’s usually safe to use the SWIFT code of the bank’s main office.Q: Can banks transfer money without a SWIFT code?Generally, SWIFT codes are required for international bank transfers. Most banks are part of the SWIFT network, and their codes can be found on official bank websites, statements, or through customer service. Because SWIFT is the global standard for messaging systems, most cross-border transfers rely on it for security and accuracy.

Transferring money across borders has become easier than ever, but with so many apps available, how do you choose the right one? While some excel in global transfers, others offer lower transfer fee or faster transaction speeds. With so many factors at play, it's tough to pick the best app for your requirements. So here is a comprehensive guide on some of the best money transfer apps to help you decide which one will work best for you.What to Look for in a Money Transfer AppWhen selecting an international money transfer app, consider the following factors: fees and exchange rates, speed of transfer, security and compliance, transfer limits, and ease of use. Some apps may include hidden costs or may not offer the best exchange rate, so it is important to examine those closely. Speed matters too, especially when sending money in an emergency. On the security front, the best apps usually provide bank-level encryption, multi-factor authentication, and fraud monitoring and protection systems. Lastly, transfer limits and ease of use should also be considered, as different apps have different transfer limits and interfaces. 8 Best International Money Transfer AppsHere are some of the widely used money transfer apps, each with its own set of features, pros, and cons.  1. WiseWise international money transfer app helps you to send money to the recipient’s bank account in over 70 countries across the world. It uses the mid-market rate, which is better than the rates offered by many firms. ProsUses the real, mid-market exchange rate for every transactionHas one transparent, low-cost feeDoes not have a maximum or minimum limit for a transferOffers 2-factor authentication for securityAllows you to set up exchange rate alerts so you can keep track of mid-market ratesConsSome users mentioned that larger transfers may sometimes require additional verification and may not be suitable for those looking for cash pickups.  Ideal for: Wise is an ideal app for those looking for transparency and cost-effectiveness.Trustpilot Rating: 4.32. RemitlyRemitly can be used to transfer money to 170+ countries, including the Philippines, India, Mexico, and over 40 African countries. It allows quick and convenient transfers. ProsOffers cash pickup, bank deposits, and UPI payments with providers in countries like IndiaProvides discounts on transfer fees for first-time transactionsUses advanced technology to protect transactionsMakes transaction tracking through regular email and SMS updatesConsThe cost of sending money varies by amount, payment method, and delivery option and it may not be suitable for those looking at a transfer method with no limits. Ideal for: Remitly is ideal for those looking for flexibility because it offers Express and Economy options.Trustpilot Rating: 4.63. RevolutRevolut is more than just a money transfer app. It's a comprehensive financial platform. It supports bank transfers, card transfers, transfers to other Revolut accounts, and to mobile wallets. ProsOffers multi-currency support, allowing you to hold and exchange over 30 currencies at the interbank rateHas versatile features offering budgeting tools, stock trading, and crypto exchangeIs suitable for both personal and business useConsPremium features require a subscription Ideal for: It is ideal for those wanting to spend in multiple currencies without incurring additional transaction fees.Trustpilot Rating: 4.14. MoneyGramMoneyGram is well-known in the money transfer space, especially for cash pickup services. However, fees can be high if you pay with a credit or debit card. It is available across 200+ countries and territories, and you can make transactions in 135+ currencies and numerous cryptocurrencies.  ProsOffers both online and offline transfersIs generally fairly quick compared to other service providersConsTransfer fees may vary depending on whether you are paying by credit/debit card, through an online/offline bank account, or opting for a cash pickup.Ideal for: Users who are looking for cash pick-up servicesTrustpilot Rating: 4.45. Western UnionWestern Union is known for its extensive network and cash pickup options.ProsHas over 500,000 agent locations worldwide, making it ideal for cash pickupsOffers a variety of payment options, including bank transfers, credit/debit cards, and cashAllows real-time tracking, so you can monitor your transfers closelyConsHigher fees, especially for smaller transactionsIdeal for: Users looking for a higher reach as they can send money to over 200 countries and territories worldwideTrustpilot Rating: 4.36. InstaremInstarem is a modern money transfer service that offers real mid-market exchange rates. You can send money to over 60 countries, including Australia, Singapore, Hong Kong, Malaysia, Eurozone countries, the UK, India, and the US. It has zero-margin exchange rates.ProsIt charges a percentage of your transfer amount as a fee, instead of a flat fee. It offers transparent pricing on all transfers, so you get the real mid-market exchange rate and an upfront transfer fee on every transaction.Most transactions are completed in 1–2 days.It allows money transfer through Electronic Funds Transfer (EFT) / Bank Transfers / Wire Transfers in all countries. You can also send money through POLI (in Australia), Debit Card (in EU), FPX (in Malaysia) and ACH Pull or Bank Transfer method (in USA).ConsLess global coverage compared to some other services and hence may not be suitable for those looking for a higher reachIdeal for: Users looking for a good exchange rate and transparencyTrustpilot Rating: 4.47. Xe Money TransferXe is known for its competitive exchange rates and extensive currency tools. It covers 190+ countries and supports 130+ currencies.ProsReal-time currency tracking and rate alertsMultiple payout options, including bank transfers and mobile walletsCompetitive exchange rates with transparent, low feesConsNot suitable for those looking for domestic money transfers Ideal for: Individuals and businesses who frequently send money internationally and those looking for competitive exchange rates and transparent feesTrustpilot Rating: 4.38. UnplexUnplex stands for its groundbreaking integration with WhatsApp. What sets it apart from competitors is its seamless incorporation of financial services within the widely used messaging platform.ProsSeamless WhatsApp integration for convenient in-app transfersIntuitive, user-friendly interfaceFast domestic transfersCompetitive pricing with nominal transaction feesConsThis has limited international reach, and the transfer fees may be variable.Ideal for: Individuals, particularly those in the USA or Canada, who frequently send money to friends and family in India or the Philippines. It simplifies international money transfers through WhatsApp. Trustpilot Rating: 4.7 Make Your Transfers Count with the Best Money Transfer AppThere are various international money transfer apps in the market, and you can use this guide to decide which one to use as per your requirements. Remember to check for the criteria that matter most to you—be it transfer fees, clean user interface, or speed of transfer.If you prioritize transparency and cost-effectiveness, Wise might be your best bet. For those who need cash pickup options, Western Union is a solid choice. Remitly offers flexibility with its Express and Economy options, while Xe Money Transfer excels in competitive exchange rates. You can also use CompareRemit’s comparison tool today to find the best rates, lowest fees and fastest turnaround times for your specific destination and transfer amount. Also stay updated on the latest coupons and offers by various money transfer service providers. Frequently Asked Questions (FAQs)Q: Can I use Google Pay to send money internationally?Yes, you can use Google Pay to send money internationally, but not directly in all cases. You can send money to India using Google Pay, and for other countries, you'll need to use a third-party service like Wise. Google Pay itself does not charge fees for international transfers, but the third-party service might. Always check the fees and exchange rates of the third-party service before making a transfer. Q: What is the cheapest way to transfer money internationally?Bank transfers are usually the cheapest option when it comes to international money transfers. While they can be slower than using debit or credit cards, they usually offer the best value for your money. Q: How do I avoid international transfer fees?Many US banks charge less for online wire transfers, as these payments don't cost as much to process. Try sending your transfer via online banking or your bank's mobile app. For example, providers like Citibank or Wells Fargo waive their outgoing transfer fee for online wires in a foreign currency.Q: Is Wise better than PayPal?Wise generally provides more transparency and lower fees compared to PayPal, especially for international transfers. They use mid-market exchange rates and a small fixed fee, while PayPal fees vary depending on multiple factors, like country and currency. PayPal also charges a currency conversion fee.