Cost of bringing US investment money back to India: what you actually lose

You built a US stock portfolio over several years via LRS. Now you want some or all of it back in India — for a home purchase, retirement, or reallocation. What arrives in your bank account is substantially less than your portfolio value on the day you decided to repatriate. This guide maps every cost.

Use the repatriation cost calculator to compute the exact net for your situation.

The full cost stack

Repatriation has four layers of cost:

1. Indian capital gains tax — the biggest item
2. US withholding tax (dividends only, not capital gains)
3. FX conversion spread — the mid-rate vs your bank's rate
4. Wire transfer and bank fees

Layer 1: Indian capital gains tax

This is typically 80–90% of your total repatriation cost. When you sell US stocks or ETFs:

The LTCG rate is INR gain, not USD gain. If USD/INR was 75 when you bought and is 93 when you sell, the currency appreciation is part of your taxable gain even if the dollar price of the stock is flat.

Example: Bought 100 shares of VTI at $200 when USD/INR = 75 → INR cost = ₹15,00,000. Sold at $200 (flat in USD) when USD/INR = 93 → proceeds = ₹18,60,000. LTCG = ₹3,60,000 × 12.5% = ₹45,000 tax — on a position that went nowhere in USD.

This is the FX gain being taxed. It's real tax on a real rupee gain, even with zero USD return.

Layer 2: US tax (usually minimal)

With a valid W-8BEN on file at your US broker, capital gains from selling US stocks are not withheld by the US for non-US residents. The US withholds 30% on dividends by default, reduced to 15% under the India-US DTAA with W-8BEN.

So for repatriation purposes, if you're selling stocks (not dividends), US withholding is typically zero. Check with your broker that your W-8BEN is current — it expires and must be renewed periodically.

Any dividend withholding already paid in the US can be claimed as a Foreign Tax Credit in India via Form 67 (or Form 44 from TY 2026-27), reducing your Indian tax liability on the same dividend income.

Layer 3: FX conversion spread

When you wire USD from your US broker to your Indian bank account, the bank converts at its own rate — not the RBI reference rate or the mid-market rate you see on Google.

Typical spreads:

• Large Indian banks (HDFC, ICICI, SBI): 0.5–1.5% above mid-rate
• Specialist FX services (Wise, BookMyForex): 0.1–0.4%

On $100,000 repatriation:

• At 1% bank spread: ₹93,000 cost (at USD/INR 93)
• At 0.2% Wise spread: ₹18,600 cost

Wire fees: Typically $15–30 from your US broker for an international wire. Your Indian bank may also charge an inward remittance fee (₹500–1,500).

Layer 4: The NSR (No Surprise Repatriation) checklist

Before initiating a large repatriation:

1. Ensure W-8BEN is valid at your US broker
2. Compute capital gains in INR — not USD. Use purchase date exchange rates from RBI historical data or your broker's confirmation
3. Identify which lots to sell — sell LTCG-eligible lots first (24+ months) to lock in 12.5% rate; short-term lots would be at 30%+
4. Set aside Indian tax liability — you'll pay this at ITR filing (or advance tax if large)
5. Use a specialist FX service if the amount is large enough to justify the extra step

Worked example: $100,000 repatriation (LTCG)

Assume: Portfolio originally purchased at average USD/INR of 78 (total INR cost ₹78 lakh), current USD/INR 93, no US tax on capital gains.

At 12.5% LTCG, total costs are under 3% — relatively efficient. If you're selling STCG lots at 31.2%:

The holding period decision is worth roughly ₹2.8 lakh on a ₹93 lakh repatriation.

When to repatriate (and when not to)

Good reasons to repatriate:

• Specific INR-denominated goal (home purchase, child's education in India)
• Reducing concentration risk
• Portfolio rebalancing

Not a good reason:

• Fear of US market volatility — the FX conversion cost means you pay to exit and pay to re-enter. For long-horizon wealth building, staying invested usually wins.

Tax-efficient timing:

• Repatriate LTCG lots (24+ months) before STCG lots
• Time large repatriations across financial years to avoid surcharge thresholds
• If you have harvested losses in India from other assets, use them to offset gains

The one-line version

For LTCG positions, total repatriation cost from a US portfolio to India is typically 2.5–3.5% (tax + FX). For STCG it's 5–7%. Use the repatriation cost calculator to plan before you sell.

Brokerage sale cost: platform comparison

Before the money leaves your US broker, you pay brokerage on the sale. The difference between platforms is material on large liquidations:

For a $100,000 liquidation, brokerage varies from approximately $0 (Vested) to $250 (INDmoney on smaller trades) to well under $50 (IBKR). At scale, IBKR is the cheapest execution venue by a significant margin.

FX conversion routes and actual costs

Once cash is in your US brokerage, you have several paths to get INR into your Indian bank account:

Route 1: Wire to Indian bank directly. Your US broker sends a SWIFT wire to your Indian bank (HDFC, ICICI, SBI). The bank converts at its sell rate — typically 0.5–1.5% above mid-market. On $100,000, that is ₹46,500–₹1,39,500 in FX cost at current rates.

Route 2: Rovia's built-in INR repatriation. Rovia offers an integrated flow that allows US stock sale proceeds to be repatriated into an Indian bank account directly. The FX conversion happens at Rovia's rate (~0.5–0.75% spread). This simplifies the workflow for RSU holders who sell and repatriate frequently.

Route 3: Wise (formerly TransferWise). Wire USD from your US broker to a Wise USD account, then convert and send to India. Wise's spread is 0.4–0.6% on USD/INR with a small fixed fee. On $100,000, total Wise cost is approximately $450–600 — meaningfully cheaper than a bank wire.

Route 4: IBKR FX + direct wire. IBKR converts USD to INR internally at near-interbank rates (0.002%, minimum $2), then wires to your Indian bank. The FX leg alone saves ₹40,000–₹1,20,000 relative to bank rates on a $100,000 transfer.

Bank SWIFT receiving fees

Your Indian bank charges to receive inward remittances. Typical fees:

• HDFC Bank: ₹500–₹1,000 flat
• ICICI Bank: ₹500–₹1,000 flat
• SBI: ₹500–₹1,500 (varies by branch)
• Axis Bank: ₹500–₹1,000 flat

Some premium banking relationships waive inward SWIFT fees — check with your bank before planning.

TCS refund timeline

TCS applies to outbound LRS remittances — not to repatriation. Bringing money back from a US brokerage to India is a return of invested capital, not a new LRS outflow. No TCS is collected on the inbound wire.

However, if you previously paid TCS on the outbound LRS remittance when you first invested (20% on amounts above ₹10 lakh), you are entitled to a refund of that TCS as a credit against your income tax liability. The refund process:

1. File your ITR including Schedule FA and capital gains from US stocks
2. TCS paid appears in Form 26AS (reflected from your bank's TDS return)
3. Claim TCS as advance tax credit in ITR
4. Refund is processed by the Income Tax department — typically 6–12 weeks after ITR processing, faster if filed early (July–August)

LRS cap: does repatriation count against your $250K limit?

No. The $250,000 LRS limit applies to outward remittances from India — money leaving India for investment abroad. Repatriation (money returning to India from a legitimate overseas investment) is not counted against the LRS limit. You can repatriate any amount without it affecting your future LRS capacity.

Total round-trip cost comparison

Assuming a $100,000 portfolio held for 2+ years (LTCG) with original INR cost ₹78 lakh, current value ₹93 lakh:

IBKR saves approximately ₹86,000 in pre-tax FX costs relative to the standard bank wire route. For amounts above ₹25 lakh ($27,000+), IBKR's cost advantage is significant enough to justify the setup effort.

Best route by amount:

• Under ₹5 lakh: Any LRS platform. FX differences are small in absolute terms. Use Wise on the FX leg.
• ₹5–25 lakh: Rovia's integrated repatriation or Vested + Wise. Tax is the dominant cost.
• Above ₹25 lakh: IBKR (via Paasa or direct) is materially cheaper. The setup pays for itself on the first large liquidation.