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Taxation on Foreign Currancy transaction

Sir Is there any new taxation imposed on foreign currency (Like USD) transaction from obroad to India? If so what is the percentage of tax? Recently I transferred USD 3,500.- to my NRE account by TT from Saudi Arabia. (My bank is South Indian Bank) They deducted about Rs. 650.- and the remaining credited to my NRE account. The bankers informed me that the deduction of the 650.- is the new tax on foreign currency. On the other hand, a friend of mine did the same transfer to SBI, but he lost only Rs. 25.- Is there any way to get out of this regulation as I have to transfer USD every month. Thank you very much for your assistance in this matter Truly Nooruddeen nooruddeen.m@industrial.initec.es


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