You’ve hit the milestone. Maybe it’s a property sale in Mumbai, a tech exit in Bengaluru, or just years of disciplined SIPs. You have 10 million rupees sitting there. Now you want to move it. Converting rs 1 crore to usd sounds like a simple math problem you’d give a calculator, but honestly? The math is the easy part. The "hidden" stuff—the Tax Collected at Source (TCS), the spread, and the Liberalised Remittance Scheme (LRS) limits—is where people actually lose their shirts.
If you check Google right now, it might tell you that 1 crore is worth about $118,000 or $120,000 depending on the day. That’s the "mid-market" rate. It’s a fantasy. You will never, ever get that rate from a bank.
The Reality of Converting Rs 1 Crore to USD Today
When you look at the exchange rate, you’re seeing the interbank rate. Banks buy at one price and sell to you at another. This gap is the "spread." For a transaction of this size, a 1% spread is common, though if you're savvy, you can negotiate it down. On 1 crore, a 1% spread is 1 lakh rupees. Poof. Gone before you even start.
Then there’s the big one: the Reserve Bank of India (RBI). Under the LRS, an Indian resident can only send $250,000 abroad per financial year. At current rates, 1 crore fits comfortably inside that limit. But the taxman wants his cut upfront. As of late 2023 and into 2024, the Indian government hiked the TCS on foreign remittances to 20% for amounts over 7 lakhs (unless it's for education or medical treatment).
Think about that. If you try to send the full 1 crore, the bank might hold back 20 lakhs as tax. You’ll get it back eventually when you file your tax returns, but for now, your "investment power" in the US just took a massive hit. You aren't sending $120,000. You're effectively sending closer to $95,000 after the tax hit, even if that tax is technically a refundable credit.
Why the "Official" Rate is a Lie
Interbank rates are for billion-dollar institutions. For us? We deal with retail rates. If the USD/INR is trading at 83.50, your bank will likely charge you 84.20 or 84.50.
Let's look at the math.
10,000,000 / 84.50 = $118,343.
But wait. You also have GST on the currency conversion itself. It's a sliding scale. For a 1 crore transaction, the GST on the service fee is roughly a few thousand rupees. It’s peanuts compared to the TCS, but it’s there.
The LRS Trap Most People Ignore
The $250,000 limit is a "use it or lose it" deal per financial year (April to March). If you have 2 crores to move, you can’t do it all at once without jumping through massive regulatory hoops or having a specific business case. For most individuals, rs 1 crore to usd is a once-a-year maneuver.
If you are moving this money to buy stocks on the NASDAQ or to fund a child's tuition at NYU, the rules change. For education, if the money is sourced from an education loan, the TCS is a tiny 0.5%. If it's from your own pocket, it's 5% above the 7 lakh threshold. This is why you must label your transfer correctly. Tell the bank it's for "maintenance of close relatives" or "education" if that's the truth. Don't just tick "others."
Choosing the Right Path: Banks vs. Fintech
Most people default to their HDFC or ICICI RM. Bad move. Relationship managers are great for coffee; they are usually terrible for exchange rates. They have "standard" rates that are padded with fat margins.
🔗 Read more: Ohio Builders Surplus Portsmouth OH: What Most People Get Wrong
You have to haggle.
Tell them you’re looking at a platform like BookMyForex or Wise. These fintech players often use a much tighter spread. Even a difference of 20 paise on the dollar adds up when you’re dealing with 10 million rupees. On a 1 crore transfer, 20 paise is about 24,000 rupees. That’s a round-trip flight from Delhi to Dubai. Why give it to the bank for free?
Real-world Example: The "Vikas" Scenario
Vikas sold an ancestral plot for 1.1 crore. After capital gains tax, he had exactly 1 crore left. He wanted to move it to his daughter in San Francisco for a house down payment.
- Option A (The Lazy Way): He goes to his local bank branch. They give him a rate of 84.80 (when the market is 83.80). They deduct 20% TCS because he didn't provide proof of a "gift to a relative" properly. He ends up with about $94,000 in the US account and a massive tax credit he can't use until next year.
- Option B (The Pro Way): Vikas gets a "Net Worth Certificate" from his CA. He negotiates the rate down to 84.10 by showing a quote from a competitor. He ensures the bank marks the transfer under the correct "Gift" category to a lineal descendant. He still pays the TCS (because the 20% rule is strict now), but his base rate saved him over $1,000 USD.
The Timing Problem (Market Volatility)
The Rupee has been on a slow, grinding slide against the Dollar for decades. In 2014, 1 crore was worth about $160,000. Today? It's hovering near $118,000.
Inflation in India is generally higher than in the US. This "inflation differential" almost guarantees that the Rupee will depreciate over the long term. If you are sitting on 1 crore and know you need Dollars in six months, waiting is usually a losing game. You’re fighting a structural trend.
📖 Related: Why the US Dollar to Costa Rica Colon Exchange Rate is Driving Everyone Crazy Right Now
However, don't FOMO (Fear Of Missing Out) when there’s a sudden spike. If the RBI intervenes to protect the Rupee, you often see a temporary 50-70 paise recovery. That’s your window.
Documentation You Will Absolutely Need
Don't even try to start the rs 1 crore to usd process without these:
- Form 15CA and 15CB: These are the big ones. 15CA is a declaration by you, and 15CB is a certificate from a Chartered Accountant. They basically tell the government that you’ve paid your taxes on this money before trying to send it out of the country.
- PAN Card: Obviously. Since 2023, the tracking of LRS spend against your PAN is real-time.
- Bank Statement: Showing the source of funds. If 1 crore suddenly appeared in your account yesterday, the bank's compliance team will flag it for Anti-Money Laundering (AML) checks.
Is it Better to Keep the Money in India?
This is the $118,000 question.
India offers higher interest rates. You can get 7-8% on a Fixed Deposit. In the US, you’re looking at 4-5% in a high-yield savings account or money market fund.
But you have to account for the depreciation. If the Rupee falls 3% against the Dollar in a year, and you earned 7% in India, your "real" return in Dollar terms is only 4%. You’ve basically broken even with a US savings account, but with more paperwork and more sovereign risk.
Moving rs 1 crore to usd is often less about "beating the market" and more about "geographic diversification." If all your assets are in Rupees, you are 100% exposed to the Indian economy. Moving a crore to the US gives you a hedge. If the Rupee crashes, your US assets balloon in value when measured in INR.
👉 See also: EVGO Stock Price Today: Why Everyone Is Watching the $3 Mark
The Tax Collected at Source (TCS) Nightmare
Let’s talk about that 20% again because it’s the biggest hurdle.
Prior to October 2023, the TCS was 5%. Now, for most purposes, it's 20%.
- The Math: On 10,000,000 INR, the first 7,00,000 is exempt.
- The remaining 93,00,000 is taxed at 20%.
- That’s 18,60,000 INR.
You need to have 1.18 crore in your account to actually get 1 crore's worth of Dollars across the border. Or, you send 1 crore and only $95,000-ish actually lands. This is a massive liquidity suck. If you're buying a property in the US and need exactly $120,000, you need to plan for this "temporary" tax loss. You'll get it back as a refund after you file your ITR, but that could be 12 to 18 months away.
Practical Steps to Maximize Your Transfer
First, split the transfer if you have a spouse or parents. Each individual has a $250,000 LRS limit. If you move 50 lakhs in your name and 50 lakhs in your spouse’s name, you both utilize your 7 lakh TCS-free threshold. You save 20% tax on 14 lakhs total instead of just 7 lakhs. It's a legal, simple way to keep more of your cash liquid.
Second, check the "Mid-Market" rate on Reuters or Google Finance right before you call the bank. If they quote you a rate that’s more than 0.50 INR higher, push back. Mention that you're comparing rates with digital platforms.
Third, avoid the weekends. Forex markets are closed. Banks add an extra "buffer" to the rate on Saturdays and Sundays to protect themselves against market gaps on Monday morning. Always trade on a Tuesday, Wednesday, or Thursday.
Finally, get your 15CB ready early. CAs often take a few days to verify the source of funds. If you find a great exchange rate but don't have your paperwork, the rate will be gone by the time you're ready.
Moving rs 1 crore to usd is a significant financial move. It marks a transition from domestic wealth to global capital. Treat it with the respect it deserves—don't let sloppy paperwork or a lazy bank manager eat your hard-earned money.
Your Action Plan
- Verify the Source: Ensure the 1 crore has been in your account long enough to satisfy AML rules or has clear documentation (sale deed, gift deed).
- Appoint a CA: Get your Form 15CA/CB filed immediately. This is non-negotiable for large sums.
- Compare Three Sources: Call your primary bank, one private competitor (like Axis or Kotak), and check one fintech platform.
- Calculate the TCS: Decide if you have the extra 20% "buffer" cash or if you need to reduce the transfer amount to cover the tax.
- Execute Mid-Week: Perform the transfer on a Wednesday morning for the tightest spreads.
- Track the Refund: Keep your bank's TCS certificate safe; you will need it to claim your 18-20 lakh rupees back when you file your Indian income tax return.