Converting money sounds simple. You Google a number, see the rate, and assume that's what you'll get. But if you’re trying to move rs 10 lakh in us dollars, you quickly realize the "internet rate" is a bit of a fantasy.
Ten lakh rupees. It’s a milestone figure in India. A "millionaire" in the local sense, though in the US, it doesn’t quite buy a driveway in San Francisco.
Right now, the exchange rate hovers around 83 to 84 rupees per dollar. That puts rs 10 lakh in us dollars at roughly $11,900 to $12,000. It fluctuates. Every single day. If the RBI breathes differently or the US Federal Reserve hints at a rate hike, that number shifts.
But here is the kicker. You will almost never actually receive $12,000 in your US bank account.
Between the "spread" (the hidden fee banks tuck into the exchange rate), the wire transfer fees, and the dreaded TCS (Tax Collected at Source) in India, your actual take-home is usually lower. Much lower.
Why rs 10 lakh in us dollars is the "Danger Zone" for Fees
Most people sending money abroad fall into two camps: the small-timers sending a few hundred bucks and the big corporations moving millions. When you are sitting right at the 10 lakh mark, you’re in a weird middle ground.
You're sending enough that a 1% difference in the exchange rate actually hurts. We are talking about a $120 difference just based on which app or bank you choose. That's a nice dinner or a week of groceries.
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The Mid-Market Rate Trap
Google shows you the mid-market rate. This is the midpoint between the buy and sell prices of global currencies. Banks don’t give this to individuals. They add a markup. If Google says 83.50, your bank might charge you 84.80. Honestly, it’s a racket. On a 10 lakh transfer, that markup alone can cost you 15,000 rupees.
Then there is the GST. Yes, India charges Goods and Services Tax on the currency conversion itself. It’s a tiered system, and for a 10 lakh transfer, you’re looking at a specific flat fee plus a percentage of the amount exceeding a certain threshold.
The Reality of LRS and Tax Collected at Source (TCS)
You can't talk about rs 10 lakh in us dollars without talking about the Liberalised Remittance Scheme (LRS). The Reserve Bank of India lets you send up to $250,000 per year. 10 lakh is well within that.
But as of October 2023, the Indian government got aggressive with TCS.
If you are sending money for education or medical treatment, the rules are kinder. But for "other" purposes—like investing in US stocks or just moving savings—anything above 7 lakh rupees in a financial year attracts a 20% TCS.
Wait. Read that again.
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If you send 10 lakh, the bank might hold back 20% of the amount exceeding 7 lakh. That means 20% of 3 lakh is 60,000 rupees. You eventually get this back as a credit when you file your Income Tax Returns (ITR), but for the moment, your $12,000 just shrunk significantly in terms of liquidity. It's frustrating. It's a "forced loan" to the government.
Comparing the Big Players
If you walk into a traditional bank like SBI or HDFC, you get "safety," but you pay for it. Their portals are often clunky. Their rates are rarely the best.
Fintech has changed things. Platforms like Wise (formerly TransferWise), Revolut, or even specialized Indian services like Vested and BookMyForex have started eating the banks' lunch. Why? Because they show you the fee upfront.
I've seen cases where using a specialist forex service saved someone $300 on a 10 lakh transfer compared to a standard wire transfer from a local branch. $300 is a lot of money to lose to a slow-moving bank.
Is Now a Good Time to Convert?
Timing the market is a fool's errand. People have been waiting for the rupee to "strengthen" back to 75 for years. It hasn't happened. The dollar is the world's reserve currency, and the rupee has historically depreciated by 3-5% annually against it.
If you have rs 10 lakh in us dollars to move, don't wait for a "miracle" rate. Look at the 30-day average. If the rate is within 0.5% of that average, it's usually better to just pull the trigger.
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Volatility is the enemy. If you wait two weeks hoping to save $50, you might end up losing $400 because of a sudden geopolitical shift or an inflation report out of Washington D.C.
Common Misconceptions
- "I'll just carry cash." Bad idea. You can only carry $3,000 in physical cash out of India without specific permits. The rest has to be in travelers' checks or on a forex card. Plus, the exchange rates at airport booths are arguably the worst on the planet.
- "Crypto is cheaper." Sometimes, but the "off-ramps" (turning that crypto back into USD in a US bank) are increasingly regulated and come with their own set of 30% tax headaches in India.
- "My US bank won't charge me." They might not charge an "incoming" fee, but the intermediary banks—the ones that move the money between India and the US—often take a $15 to $25 "hidden" cut.
Actionable Steps for Your 10 Lakh Transfer
First, check if you’ve already used your 7 lakh TCS-free limit for the year. If you haven't, you only pay the 20% tax on the 3 lakh "overflow."
Second, get quotes from at least three places. Don't just look at the exchange rate. Look at the "Net Landed Cost." Ask: "If I give you 1,000,000 rupees, exactly how many dollars will hit my US account?" That is the only number that matters.
Third, use a dedicated forex platform rather than a general bank account if you want to save on the spread. These platforms pool transfers to get wholesale rates.
Finally, keep your paperwork ready. You'll need your PAN card, and the bank will ask for the purpose of the transfer (Purpose Code). Using the wrong code can lead to delays or even rejection by the compliance team.
Calculate the final amount using this logic:
- Start with 1,000,000 INR.
- Subtract the 18% GST on the service charge (usually a few thousand rupees).
- Subtract the bank's fixed wire fee ($20-$40).
- Apply the actual offered rate (not the Google rate).
- Account for the 20% TCS on the portion above 7 lakh.
Moving 10 lakh is a significant financial move. Do it thoughtfully, and you’ll keep a few hundred extra dollars in your pocket rather than giving them to a bank's profit margin.