Question on transferring money abroad: I’m a US permanent resident. I have some money left in my Indian Bank. Can I accept dollars from my US friends and transfer the Indian currency equivalent to their Indian family or friends from my Indian Bank account? Is there a legal problem?
When you convert foreign currency to USD, or vice versa, you can have reportable currency transaction gains. Gains from personal transactions under $200 are not taxable.
What you are doing could be construed as an indirect foreign currency transaction. Expat tax is a complicated area of taxation and you should seek an attorney experienced in this specific area.