Transfering funds from India to the US
Can I transfer funds from India to USA which I have borrowed in India. Funds borrowed in India may not be transferred outside of India as per Foreign Exchange Management Act. Loans in rupees to non-residents against security of shares or   immovable property in India:-   Subject to the directions issued by   the Reserve Bank from time to time in this regard, an authorised   dealer in India may grant loan to a non-resident Indian, e) the loan amount shall not be remitted outside India;
You can receive funds from US Client as an individual. There is no legal requirement for you to have a company. If the transactions are large say more than 20 lacs in a year, its advisable to open a Private Ltd. Although its simple opening & Registering a company [A CA or a Laywer would get one at a nominal price of Rs 5000] you can do yourself. Whatever be the case, its advisable to have seperate accounts for this business / professional service transactions. Maintain proper records of the funds received. There are certain benefits you can claim, a CA can help you. Paying taxes in Advance is your responsibility and hence make sure you keep paying every quarter as advance tax. Related questions Indian citizen working from India as freelancer for U.S.-based company. How to report the income & pay tax in India? Freelancer in India working for Swiss Company Freelancing to UK company from India How do I account for money paid to colleagues out of my professional income? If you are still Indian Citizen for Tax purposes, then all your Global Income is taxable [There are certain exemption if you are in certain professions]. So even if you transfer or not transfer the funds to India, it is taxable in India. If you are getting a per day allowance, its exempt, this has to be looked more as expense reimbursed. If you are saving from per day allowance, well whatever you have save is to be declared as additional income and pay tax accordingly. If you are NRI for tax purposes, there is no limit on the amount of funds that you can send to India. Note that it would help to transfer funds into a separate NRI/NRO account to ensure traceability and ease of taxation. Can we wire transfer money from my NRE account to USA checking account? Yes you can Is there any restrictions for transferring money? Nothing in India Hopefully someone else will answer the US side of questions. Can I wire transfer money from the my NRO account in India to my checking account in the USA?  Yes you can. However there is some paperwork you need to follow. As per FEMA [Foreign Exchange Management Act], any transfer by individuals outside of India need the 15CA & 15CB form. The 15CB is from a CA to state that taxes have been paid on the funds being transferred. The limit is 1 million USD per year. Read more at Liberalized Remittance Scheme and here. Any limit on the amount and do I have to report this to IRS or any other legal formality? Assuming you were already declaring the funds held in Banks outside of US in your regular IRS filings, there is no other formality. "Usually services like Western Union or MoneyGram only give the recipient the money, not the information about who and when sent it. But you can verify with them directly.  However, for legal/tax reasons, your friend might have to declare that it was a gift, and where it came from. So depending on the country of the destination you might not be able to completely ""hide"" from the recipient, even if the transfer service technically allows that. In any case, when you transfer the money out from the US you'll have to provide your personal identification and information. Since the USA PATRIOT Act, it is impossible to transact ""anonymously"" (not sure if it ever was possible in the US, actually)." There is no tax liability for your brother in India as under gift tax,t there is no cap on amount. The transaction may be taxable to you in US, as there is a limit of USD 14000 per year per person. All the items listed are required for International Wire transfer. In wrong hands this info along with other info can cause issues. Most of the times you trust the person with this info and hence is less cause to worry. So the key is if you don't trust, don't give the details. Use alternatives like; Best open an account for receiving funds. Share the details, once the funds are received move it to an account where the details have not been shared. Alternatively paypal or other such services can help. "You will always pay the 10% penalty and the income tax on the money, so even if you withdraw amounts below the taxable limits - you still pay 10% tax. However, you can probably offset that from your Indian tax liability on the money. If you convert it to Roth - you should check with an Indian tax accountant/adviser what the Indian tax treatment would be. It is likely that ""Roth"" advantages are unrecognized by foreign countries, so you may end up paying taxes on both the conversion (in the US) and the distribution (in India). Check with a tax adviser who's knowledgeable about the Indo-US tax treaty and the tax laws in both the countries, this may be trickier than people with no international tax experience may think."