The year, not the transfer

The threshold is cumulative over the financial year and not per transfer. A reader who sends money twice can cross the threshold without noticing, because the bank adds up all remittances in the year and the collection begins on the rupee that crosses it.

Two transfers can cross a line neither one reaches

The same year, counted in dollars: what was sent against what was left to invest.

The threshold is for the year

The threshold applies to the financial year as a whole, not to each transfer. A reader who sends a small amount in April and another in May may cross the threshold in May, even though neither transfer alone would have crossed it.

The bank adds up all remittances in the year, and the collection begins on the rupee that crosses the threshold. The second transfer may be partly or wholly above the threshold, and the collection is calculated on the part above it.

Two transfers can cross it

Two modest transfers can cross the threshold when neither would alone. A reader who sends half the threshold in one month and half again in the next has crossed the threshold, and the collection begins on the second transfer.

The collection is not on the whole second transfer; it is on the part that exceeds the threshold. But the reader may be surprised, because each transfer looked small and the threshold seemed far away.

The same year, counted in dollars

The table above shows the same ladder in dollars: what was sent and what was left to invest. One column is the year's total remittance; another is the amount collected; a third is the amount that reaches the account abroad.

The table is built on the year's total rather than on one remittance, because the threshold is cumulative. A reader who has sent earlier money must add it to the table's rows to see the collection on the next transfer.

The collection begins on the rupee

The collection begins on the rupee that crosses the threshold, not on the transfer that contains it. A reader who sends an amount just over the threshold will have a small collection, not a collection on the whole transfer.

The fixed share applies only to the part above the threshold. The part under the threshold is never collected, no matter how many transfers it took to reach it.

Across purposes, not just shares

The threshold is cumulative across purposes. Money sent for a share, a fund, a foreign account, or any other purpose under the scheme all counts towards the same yearly threshold. A reader who sends money for two different purposes may cross the threshold without realising it.

The bank does not reset the threshold for a different purpose, and the collection is the same. The reader should keep a running total of all remittances in the year.

What a reader should track

A reader should track the year's total remittances, not the individual transfers. The bank will ask for the purpose of each transfer, but the threshold is on the total. A reader who loses track may be surprised by the collection on a later transfer.

The financial year runs from April to March, not the calendar year. A reader who thinks in calendar years may cross the threshold in January and again in April, because the year resets in April.