Could someone please let me know how much money I would be able to transfer to India from my US bank account to my regular bank account. Do I have to let IRS know about it? What are the TAX Rules? I am an Indian Citizen.
Generally, I would not worry about sending all of your own money to your own bank account in India. Sending your own money from the USA to an account you own in India is generally not a taxable event in the USA.
It is possible that you may have other reporting or withholding obligations, and may wish to discuss this possibility with a CPA or other professional.
Under the Bank Secrecy Act, your bank already provides information on certain transactions over US$10,000 and "suspicious transactions" to the US Government.
Evading government detection by making a series of transactions less than US$10,000 each can be the crime of "structuring", which is a felony. This alone can allow the government to seize all of the money, even without proof of another crime. While this is generally used against criminals, innocent people are occasionally victims of this policy. These occurrences also suggest that the government receives reports of transfers smaller than $10,000.
If you are a US Citizen or Permanent Resident, in addition to your foreign citizenship, there is a complex set of laws and regulations you need to follow. First, you need to know that the USA taxes worldwide income and also may require you to withhold taxes from certain money paid to foreigners. This means you should be reporting interest and dividends from your bank account or investments outside the USA in India or elsewhere. You are also required to provide a Foreign Bank Account Report to the US Treasury if your foreign (Indian) bank accounts total exceeds US$10,000. The fines for not doing so can be very large, and can exceed the total balance of the bank account. Enforcement is imperfect, but it seems to be wise to comply with these laws because of the size of the fines.
This is a brief summary of a complicated subject. You should find a knowledgeable local expert, such as a Certified Public Accountant (CPA) or Tax Attorney for follow up.