On May 14, 2015, the President of India gave assent to the Finance Bill, 2015 as passed by the both Houses of Parliament, which substituted section 195(6) with effect from June 1, 2015 as under:
“The person responsible for paying to a non-resident (not being a company) or to a foreign company, any sum, whether or not chargeable under the provisions of this Act, shall furnish the information relating to payment of such sum, in such form and manner, as may be prescribed.”
This amendment brings clarity to the ongoing debate about whether 15CA/15CB is required for NRO to NRE transfer or for remittance outside of India of any non-taxable funds like long term capital gain on equity shares, PPF account, inheritance, etc.
While the CBDT notification 67/2013 required Form 15CA/15CB only for the taxable transfers, the bank personnel were asking for the Forms even for such non-taxable transfers creating a lot of confusion among NRI fraternity. This amendment made the procedural requirement very clear.
Please note:
- The revised rules are applicable from June 1, 2015, so you still have 15 days to transfer non-taxable funds without Form 15CB/15CA. Of course, convincing the bank won’t be easy.
- For the nature of the payments included in the “Specified List”, Form 15CB/15CA may not be required.
- For payment that does not exceed Rs. 50,000 or aggregate of payment does not exceed Rs. 250,000 in a financial year, Only Form 15CA Part A to be furnished.
- For any payment other than #3 above, updated CA Certificate in Form 15CB to be obtained and Part B of the Form 15CA to be furnished to the Income Tax department.
Please review my other blogs on NRO to NRE transfers and information required for 15CB/15CA.
Summary:
From June 1, 2015, Form 15CA/15CB would be required for transfer of funds from NRO to NRE or for making any payment to an NRI.
The rules and procedures have been revised again. For the latest procedures and requirement as on April 1, 2016, please visit my recent blog 15CB, 15CA Procedures Updated: Understand new procedures applicable from April 1, 2016.
Will form 15ca or cb will be required if gifts are made to NRO account of son by father from his ordinary resident savings account with in limit of USD 250000 per annum
I don’t think so as gift is included in the specified list that do not require 15CB/15CA. Also, bank may not require at the time of credit to NRO but at the time of transfer from NRO to NRE or abroad, 15CB/15CA may be required. Thanks.
If a NRI who is having property in India purchased in 1990, sells it now in 2016. Then the money received from buyer is deposited in NRO account. TDS is properly deducted. Now the NRI wish to transfer the funds to his NRE account. So while issuing form 15 CA is it necessary to mention about the source of Income or should he mention that it is personal transfer. Since after sale payment is received in Rupees. Or is it required to mention the capital gain details in 15CA. As returns and tax will be paid at actual. Then while issuing form 15CA can this be considered as personal transfer, as remitter and remittee would be the same person. While as remitter he will mention Indian address (sold property) and remittee (outside india address). Kindly let me know if this correct.
I would mention the sale of property and explain the money is being transferred after TDS was deducted and as a result not taxable. Thanks.
Dear Sir
One of my NRI client tranfers money from NRO account to NRE account. So in form 15CB, Country to which remittance is made will be India. So what currency should be mentioned in column amount of Remittance in foriegn currency? Can we mention INR only in amount of remittance in foreign currency also ?
The country of remittance is India so the foreign currency would also be INR. So you would mention both local and foreign currency as INR and write the same amount. Thanks.
Does this affect anyone doing payment into an NRO account?. Say for example my in-laws wanted to deposit 5 lakhs into my NRO account, from their SB account?
You would need to determine the nature of the transfer. If any transfer is included in the specified list of transactions, it may not require 15CB/15CA. Else, 15CB/15CA would be required. Thanks.
Dear Mr. Patel –
Thanks for a most informative blog.
I have 2 questions re. this current post –
1) In an earlier post, you had mentioned that the Form 15CA is to be found on the TIN-NSDL site (https://www.tin-nsdl.com/index.php) – under Services. I just checked it but couldn’t find it. Am I looking in the right place?
2) I am somewhat confused about your reply to an earlier post by Mr. Nagaraj about transfer to the NRO account. As I understand it, the 15CA/15CB procedure is related to transfers from NRO to NRE accounts. The situation in his post is about money being transferred from a resident savings bank account (his parents) to the NRO account. This appears to be a rather normal transaction for NRO accounts – for example, to receive rents from renters of properties held in India, etc. etc. Can you please reconfirm whether such a transaction will *not* require 15ca/15cb, or whether you still think there are situations where 15ca/15cb will be required?
Thank you very much!
1. Form 15CA is available at incometaxindiaefiling.gov.in in Forms other than ITR. You may also access the form after logging into your account on the site. Thanks.
2. ANY payment to an NRI, whether taxable or not, would require 15CB/15CA unless it is included in the list of transfer that do not require those forms. Please note that the provision does not say anything about remittances outside India but only payment to NRI. So even if the money is going to stay in India, 15CB/15CA may be required i.e. even for rent income. Thanks.
Dear Jigar –
2.) I agree with your reading here. However, I still have the same doubt as Mr. Deb Burman. I mean section 195 / rule 37BB requiring 15CA/15CB has always applied to ‘any payment to NR’ (only ‘chargeable to tax’ is being taken away) but, in practice, for any tax chargeable payment to NRO accounts, banks did not require these forms. Does that mean that the resident payer was still supposed to submit these forms to IT (just that most people didn’t)?
No way to know but, in your opinion, will this change also mean that this provision will now be actually enforced? This would lead to a situation where these forms are being filled twice – first when crediting to NRO and then, banks will require when remitting from NRO to NRE some time later.
Thanks v much.
15CB/15CA while making payment to NRI would be enough to transfer funds from NRO to NRE. Banks would not require another set of documents for NRO to NRE transfer. Thanks.
Thank you. Can you please also answer (yes/no will do) my first question?
“Does that mean that the resident payer was still supposed to submit these forms to IT when crediting the NRO account (just that most people didn’t)?”
The payer would need to submit the forms before making payment. For crediting into NRO, bank may not ask those forms as it is not required. However, forms need to be prepared and filed to the income tax department by the payer. The Bank may require those forms when you transfer from NRO to NRE or abroad. Thanks.
thank you!
the Indian incometax act allows gift of any amount from a son to his parents without attracting any gift tax liability.Can a son who has remitted funds to India in his NRO a/c gift amount from his a/c to his parents?
Yes (as per Indian laws). you would need to check the gift tax laws of your country of residence as well. Thanks.
Can you post the link, or the details of the “specified list of transactions”, which may not require 15CB/15CA.
I tried searching and could not find that information.
Thanks
The list is included in the CBDT notification 67 of Septermber 2013. I would expect a revised notification soon (by June 1, 2015). Thanks.
Thanks for the Information.
So it all depends on how you treat the transfer. One could say it is a loan from my in-laws (RBI code S0011) , and no documentation is needed and they can deposit let’s say 5 lakh rupees in NRO, and then transfer it to NRE without issues? Or does moving money into NRE always require a 15CB/CA forms?
Please note that to treat it as a repatriable loan, there are certain conditions related to term of loan, whom, for what purpose and rate of interest (0%), out of which account, etc. of RBI that needs to be complied with. I would think the transfers included in the specified list may not require 15CB/15CA. Thanks.
dear sir
My wife and i are senior citizens retired from govt of india.we receive pension and int income.we have been recently sponsored by our son for GC which has been approved.
We have been filing our I.T.Return and are current with I.Tax returns in India.
We plan to file US return showing pension,int on FD and dividends and take ccredit fir taxes paid in india
We plan to change our status to NRO
Considering complex treatment of MF investmentshere we want to close them .
C an we transfer the money to our a/c in USA to meet our expenses.what document are needed in India and USA
Should we show our balance in PPF in 8938
Thanks
Yes, as you are an NRI (after relocating to USA), you are allowed to remit upto $1 million per year from your savings and sale of assets provided you obtain CA certificate in Form 15CB and file Form 15CA online. I would suggest you check with your bank and your CA for the required documents. All financial accounts/assets are required to be reported in Form 8938 and FBAR respectively. Thanks.
My Client is a Travel Agent (LLP)
would he require to obtain 15CB and 15CA on all remittances made abroad for hotel booking, tour booking etc. on behalf of his customers
I think Business Travel or Travel under BTQ is included in the specified list that does not require 15CB/15CA, so it may not be required. Please check with your bank. Thanks.
Dear Mr Patel
I have requested money transfer INR 7 lakhs from my ICICI NRO account to my UK bank account. I have gone through a CA firm with form 15CA/15CB all filled in but my bank wants me to be present there in branch physically to get this transfer done. They also saying that the mandate holder is even not allowed to authorise this transaction.
Can you please advise me on this as I cannot visit India for this. If you could also let me know how long the CA certificate be valid for in this situation.
Thanking you.
Vasu.
While you can not visit India, you can ask your CA to email 15CA to UK, sign the form and ship it to your ICICI bank in India. Your CA can also courier the form to your bank. Once the bank will have both forms, they will transfer funds to UK. CA certificate is valid forever. However, it is advisable to transfer funds within a reasonable time from proposed date of transfer. Thanks.
Hi! Thanks for an informative blog!
I have a follow-up question on the above query. I live in US, and we are working on getting our non-taxable money to US from India. Can we fax CA 15 form to our CPA in India or to the bank, instead of mailing/ shipping the signed forms. We want the money to be transferred with in a time period, and we are looking for faster avenues to get this work done.
Thanks.
While you can try, my experience suggests that they would require a physical copy of the form 15CA form. You may scan and email for them to start the process but sooner or later, bank would require the form in file for their records. Thanks.
Hi Jigar,
This seems to be a out of the topic subject, but hope you can clear it.
Does Section 206AA override Section 90. Does a foreign company require a PAN when tax is being deducted in india?
Also Section 115A gives a rate of 10% ? Why is DTAA giving 20%, which should i take for payment to a foreign company?
If your client doesn’t have PAN or TRC, he may not be able to take the benefit of DTAA (Sec. 90) so this question would not arise. Thanks.
Dear Mr Jigar Patel
Thanks for all your input, I just want to know how much of money I can get as gift from my blood relatives ,what is the limit so I don’t have to pay taxes as an NRI ,U.S. Citizen
Thank you very much
Geetha Murthy
As per FEMA, a resident can gift upto LRS limit (currently $250,000) to close relative NRI. As per Income tax, there is no tax if gift is received from close relatives. As per IRS, there is no tax on any foreign gift. However, the relative definition per FEMA and Income tax act is different and need to be checked before gift. I would also recommend a gift letter/deed to document the gift. Thanks.
Dear Sir,
I work for a Indian company. This company has posted me in US for long term. I have withdrawn partial fund from my PF account in India for the purpose of higher education of my son in US university.
My company has transferred my PF amount my NRO account in India. I want to transfer the money from NRO account to my NRE account. Please let me know whether I need 15 CA and 15 CB for this transfer?
From June 1, all transfers from NRO to NRE or abroad would require 15CB/15CA. I would suggest you contact your CA for the same. If you want us to provide the service, let us know. Thanks.
I wish to transfer INR 2.0 crore from my Indian bank NRO account to my UK bank account. I understand that I have to go through a CA firm and file the 2 forms.
1. 15CA
2. 15CB and submit them duly completed for processing.
As an NRI (living in UK), I also recognize that I am allowed to remit up to $1 million OR equivalent sum of monies in sterling per year from the sale of assets gifted by parents, who are also NRI’s now, but not at the time of purchase of land.
Can you please advise
1.0 IF the “gifted property” is sold and assets are to be remitted to a UK bank, what the tax laws of your country state?
2.0 Can I deposit the money from the sale of the “gifted” land in India to NRE account in India, thus avoid the filling of the said forms?
Regards,
Santokh
1. You would need to check if your parents were NRI at the time of gift. Also, whether your name was included in the land records and property transferred in your name showing gift.
2. As you have received property as gift, it became your property and you would pay tax as if you originally bought the property.
3. The sale proceeds will go to NRO only as the property was originally purchased from local funds (by your father). Thanks.
Does remittance for education purpose requires to submit 15ca 15cb now because there are amendments done and which are applicable from 1st June 2015.
As remittance for education is included in the specified list, it may not be required. Please check with your bank. Thanks.
The bank is asking for 15ca 15cb for education remittance also, so should I fight with my bank? Please advise me
I suggest not to fight but to explain and convince. If you fight, they may say it is a requirement from our HO and can’t do anything and you may be stuck. The primary issue is that you want to transfer the funds. Whether 15CB/15CA required or not is secondary so you would need to be very careful how you deal with the situation. Thanks.
Imports whether chargeable to tax or not will require submission of form 15CA/CB. Is this correct Sir?
Our Bankers are asking FORM 15CA and FORM 15CB for Payments made against Imported Goods. They say it is required compulsory as Finance Act amended wef 1st June 2015.
Kindly confirm
Yes. Any payment to a non-resident or foreign company would require 15CB/15CA from June 1, 2015. Thanks.
Dear Mr Jigar
I am an NRI. In June 2014 I bought a Mumbai Pvt. Ltd. company CCDs by paying partly by RTGS (in INR ) and partly by my NRE account cheques
Now I wish to exit and the company promoters bought back the CCDs at same price they were issued
I have PAN but no taxable income in India so not filing IT returns
Please advise
1. Can the buyer (promoter) file 15CA / 15CB and credit the sale proceed directly to my NRE a/c by RTGS or to my USD a/c abroad ??
2.If above is not possible than how to proceed for route NRO to NRE to USD a/c ?
Best Regards
Kamlesh
A valuation certificate may be required for purchase and sell of your investments. Also, you would need to inform RBI of your investments. Make sure you follow the FEMNA provision for your ownership stake. From June 1, 2015, any payment to an NRI is subject to tax and 15CB/15CA. Thanks.
Dear Mr Jigar
Thanks for your prompt reply
Issue here is that it is whose onus is to file 15CA and 15CB ?
According to me since here the buyers (promoters ) are paying to NRI the buyer of the CCDs should do the followings
a) Get valuation report
b) Get 15CB from their CA …based on (a) that there is no tax due
c) File 15CA to IT site
d) Submit above (b) and (c) to their bank with RTGS request
e) Get funds transferred by RTGS from their bank to seller (my ) NRE account
f) Report to RBI for the purchase made from NRI ( Assuming that the sale of CCDs to NRI is already reported by the company to RBI)
Please advise that above is correct
Thanks
Kamlesh
It is the responsibility of NRI make a declaration and/or officially communicate the residential status to the payer. Then, it would be payer’s responsibility to deduct TDS. Also, 15CB/15CA can be obtained by any CA – CA of payer or NRI. Also, as you would be selling your shares in non-listed company, a valuation of share may be required from a CA and required form/procedures would be required to be followed with RBI. Thanks.
my question is a requst from customer has come to me for changing the status of NRO fixd depost to NRE Deposit..wat documentation shoud be done..
second question is what if customer wants to remit funds but he is not having a pan and residing in abroad,as pan is compulsory for 15CA/CB form,wat solution can be given to him.
I am not sure if NRO FD can be directly converted into NRE. I think NRO FD would be prematurely withdrawn and then money transferred to NRE and new FD in NRE prepared. Also, PAN is required so your customer would be required to apply for PAN. The objective of 15CB/15CA is that the income tax, if any, has been paid. And, without PAN, it would not be possible for CA to certify. Thanks.
Hello Jigar,
I am a Green card resident in US and my mother is a resident in India. She doesn’t have GC or Citizenship in US.
She is selling land property in India and needs to send me that money for a house down payment in the US.
How much can she send in one transaction vs annually?
What type of bank account can she send the funds from and what forms does she need to fill?
Any help is greatly appreciated.
Thanks,
Jan
She can send you upto $ 250,000 per year (Apr-Mar) as gift. She can contact the bank where she has a resident account and fill required form and bank will transfer the funds. Please note she would have to pay tax on the sale of property, if any. Also, the limit keep changing based on RBI / FEMA rules. Thanks.
Sir,
Funds remittance from nre/fcnr account to abroadafter 01,06,2015 require form 15ca/15cb or not
Not if funds already are in NRE/FCNR as the funds are considered as repatriable funds. Thanks.
Sir, one of a foreign lawfirm worked with us to bring a invest from korea to india. For that , we have paid a fees for the korean lawfirm from india. While transfering the amount we have deducted 25.75 % of TDs as per indian act.
We even had paid the tax amount also, but now the lawfirm does not have indian pancard. Without pancard i heard that we cannot produce form 16.
In this case how can we prove them or what document we can give to that lawfirm to claim for their tax deduction.
You may provide a certificate, proof of deduction and payment of tax to them. If this is not sufficient in Korea, I would suggest you to apply a PAN card for them, update your TDS return and issue TDS certificate. Thanks.
Few Questions
1. As a NRI (USA) can I open Chitfunds in India, How can I transfer the money back to US after the Chit is matured, What is the tax implications in India and US.
2. As a NRI (USA) Can I accept a Gift Money from my brother from India, Do I have any tax implications in US
1. No, as an NRI, you are not allowed to open or invest in chit fund in India.
2. You are allowed to accept gift from your brother. It would not be taxable in India as you are receiving gift from your relative. Also, it won’t be taxable in USA as any foreign gift is exempt in USA. However, you would be required to inform IRS or the foreign gift received. Thanks.
Respected Sir,
I have following queries on the subject.I would be obliged if you throw light on the same-
Whether 15CA is required to be uploaded to IT site? Is it before Crediting the amount to the NR in the books of accounts or after Crediting the same in the books of accounts but before actual payment of the same to him or after actual payment of the same to NR and before its repatriation to foreign destination by the NR from his own NRO A/c or NRE A/c in a situation when payment is made to NR in INR and the same got deposited by him in NRO or NRE A/c? The words used in R 37BB (2) are “………….prior to remitting the payment.”
What the CA should write in the Form 15CB in the boxes B 1,10 and 12 which ask for information in foreign currency in a case where payment is made to NR in INR and the same is credited by the NR in his NRO/NRE a/c?
Your response is eagerly awaited.
CA Kiran L.Kakad
Mumbai
7738378851
1. How can you make payment before crediting in books? So crediting in books before remitting is okay.
2. For NRO to NRE transfer, your foreign currency is also INR. So you would only write INR. Thanks.
In case we need your services,kindly send your complete contact address.
Thanks
Please check the contact us page on the blog. Thanks.
I am an NRI.I have recently invested in the equity of an upcoming ecommerce company.i have also given the co an interest free loan.All the funds were transferred from my NRE account with the bank in Pune.
When I want to receive these funds back,how do I receive them,so that they are not taxed and they can be credited back to my NRE account in India?
Vasant Kothari
Your investments in private company is considered as investments on non-repatriation basis and can only be credited to NRO account. Also, as an NRI, you are not allowed to give loan to the company without RBI approval. Thanks.
Dear Sir
Thanks and Kudos for a clear, unambiguous blog ! You stand out in the crowd !! Really appreciate your service.
I have a simple question. I hold funds in my NRO a/c. These were also remitted from abroad, many years ago. I do NOT have proof of the original remittance.
Now I wish to transfer these from my NRO a/c to my NRE a/c . The amount is less than the one million limit.
I understand I need to submit form 15CB from a practicing chartered accountant
But considering that both are my own funds, both accounts (NRO, NRE ) are in the same bank with same name / beneficiary etc., is there a tax liability for just moving funds from NRO to NRE
thanks in advance
best regards
subu
Thanks for you kind words. Really appreciate.
There is no tax liability for transfer from NRO to NRE. However, a CA certificate would be required for transfer from NRO to NRE. While you do not have proof of original remittance, the bank statement from your Indian bank would suffice as it would include the remittance received in description. Let us know if you want us to help you in this regard. Thanks.
I am a US Citizen and having NRO and NRE accounts in Indian Banks. As per RBI rule income from interest in NRO a/c is freely repatriable if tax is paid.
Kindly suggest me that income from interest in NRO account on which TDS @30.90 % has been deducted can be transferred freely into NRE account at bank level without 15 CA or CB?
While the current income is freely repatriable, a CA certificate in form 15CB and fling of form 15CA would be required. Contact us if you need our help in this. Thanks.
Does it mean that if some one buys property from NRI then buyer needs to furnish info and fill form 15ca/15cb before making any payment to NRI in India ?
Buyer would first need to deduct TDS. The certificate in Form 15CB is to be issued by the Chartered Accountant. Technically, it should be buyer’s CA but practically, whether buyer’s CA or seller’s CA would complete the formalities, it needs to be discussed between buyer and seller. Thanks.
I used to make online purchases from portals like http://www.dx.com , http://www.aliexpress.com , http://www.ebay.co.uk etc. The payment mode is typically paypal. The transaction value is less than 100 $ most of the time. These purchases are for my personal use. Does such transactions require Form 15 CA / CB ?
Technically yes as any payment to an NRI whether taxable or not would require 15CB/15CA. Also, as amount is less than $100, the requirement is only of 15CA and not 15CB. Thanks.
Hello sir,
I was previously into an NRE account in which the rate of interest were low
So i transferred them into an NRO account as the interest rate were high.
And i did not apply for the 15 CA form during the transfer process.
So now i got an letter from the income tax department regarding filling of the 15CA form so i would like to know how much tax would i have to pay to the govt if required ?
There is no tax on the transfer if the TDS has been deducted on your NRO deposit accounts. Please contact your CA for the letter from the income tax department. Thanks.
No sorry sir there was an error with the question, I transfered it from NRO A/c to NRE A/c.
And i wasn’t able to fill the 15CA form.
So is there a tax payable to govt after filling of form?
There is no tax on transfer of funds. Tax is on the income e.g. interest income in your case. If the bank has already deducted TDS, there is no additional tax liability. Thanks.
Hello,
Please can you advise I intend to sell my property in india as a NRI and need to repatriate funds to UK, overall I will have made a loss, if I can show the remittances to my Indian account adds up to the amount I am looking to repatriate can I simply proceed or is CA intervention and forms needed?
Thank you
A CA certificate in form 15CB would be required for remitting funds to UK. Also, as you are an NRI, TDS @20.6% will apply. If you think it will result in loss, you would need to convince your buyer and his CA not to deduct the TDS and have to request ITO for lower / no deduction certificate. I would recommend you to contact your CA. Thanks.
Hi Jigar,
Thanks for these blogs. Really very helpful. Much appreciated. I am a NRI in USA and have a question regarding my potential property sale in India. Here is a scenario:
1. Property Sale may result in long-term capital gain.
2. Taxes paid (via TDS) when sold.
3. Sale proceeds after paying taxes deposited into NRO account.
4. File 15CA/15CA and move sale proceeds from NRO to NRE account.
5. For US taxes, my CA here in US calculates the capital gain (from 1 above) and adds it to as taxable income.
6. Taxes paid in India (2 above) may be claimed as tax credit here in USA.
Could you please comment on (5) & (6) above and share your thoughts as to if my understanding is correct?
And any other thoughts in-general regarding the above scenario are highly appreciated!
Thanks!
Harsha
You are right about the process, understanding and reporting of income to IRS. Please note you may have to file form FBAR and Form 8938, provided the sale price is above $10,000 and $50,000 respectively as the money will be deposited in the bank account. Thanks.
Thanks a lot Jigar. Much appreciated!
Harsha
Hi Jigar,
Few questions regarding reporting on Form 8938:
1. Is greater than or equal to $50,000 reporting only if it is a capital gain or its applicable to the home sale amount irrespective of gain or loss?
2. Does this similar reporting apply to sale of Mutual Funds too?
3. Is the situation i.e reporting and US tax consequence the same even if the principle amount invested in the purchase of home and/our Mutual Funds is by my dad (purchased under my name) and not by me i.e I didn’t invest anything?
Thanks,
Harsha
1. The reporting is of assets so if you sold a property for Rs. 1 Cr and deposited in bank. Even if the capital gain is only Rs. 1 lakh, because your bank balance is more than threshold, you need to report the account.
2. Mutual funds are considered as PFIC – Passive Foreign Investment Company and are reported in Form 8621. Any MF reported in 8621 are excluded from 8938.
3. As you own the asset, you are responsible for reporting the same. Thanks.
Thank you Jigar. Much appreciated! – Harsha
I bought a flat in india and funded it from nre account over 3 years, 5% payment still funding as flat is under construction. Applied for a home loan with HDFC bank and they paid me what ever I have paid to the builder back and this amount is in my nro account. Can I transfer this amount back to my UK account?
I don’t think so. Please check with your bank. Thanks.
Question for the expert:
Apologies of this is not the right place.
I (an Indian) had lived in US for few years and invested in Stocks and owned a Checking account in US. I returned to India few years ago. It has been few years since I am in India and working here. But my checking account and Stocks are still in US.
Questions:
1. I assume that I need to report my Stocks and checking account in India while declaring 2014-15 returns. Do I report current value (as of today) or End of March’2014 value?
2. Do I have to declare the acquiring price for my stocks as well?
3. What about the stocks that I had sold after coming to India. Do I need to pay taxes on them now (no transaction is in current financial year)
4. I transferred some money to my blood relation in this financial year from my US bank account to his indian savings account. Do I need to declare that? How do I do that?
5. If I return back to US next year and then sell my stocks there; do I have to pay taxes in India later?
6. If I just declare my US assets this year; will there be any questions next year or any potential liability of taxes?
7. What if I transfer my bank account balance to India this year? Do I have to pay taxes on that income too?
1-2. There is a form – statement of foreign assets that you would need to complete and file with your income tax return. You would report the details as per the form requirement. I think it requires cost and not MV.
3. Your foreign income is taxable in India only when your residential status is Ordinary Resident. If you have stayed outside India for 8+ years, you would not be Ordinary Resident until after 2 years of return. You would report the income in the year it was earned.
4. The recipient would need to inform IT department as a gift reecived. I would recommend you to have a gift letter/deed and keep in both yours and the gift receiver’s file .
5. Taxation is governed by residential status. Only if your residential status is Ordinary Resident, your US income will be taxed in India.
6. There is no tax on assets. Tax is only on Income.
7. There is no tax on money transfer but only the interest income that you would generate – both in USA and in India. US income would be required to be converted into INR for taxation. Thanks.
Hi Jigar,
Thanks for all the posts. Appreciate if you could address the following situation. A mother (Indian Citizen and Resident) would like to sell her land in India and send part (around US $60,000) of the sale proceed as a gift to her son in U.S.A.. Her son is a naturalized citizen of USA and carries an OCI card. The mother has a resident bank account in India.
She is planning to sale the land, pays appropriate tax on the sale proceed, deposit the rest in her resident bank account in India, hires a CA to complete form 15CB and 15CA, request the resident bank to send equivalent of US $60,000 to the son’s USA bank account. Is this a correct and most convenient way to send the gift to USA? if not, could you please suggest one? What taxes mother has to pay on the proceed of land sale? Is it correct that there will be no gift tax on the mother in India or the son in USA? What other forms the mother or the son needs to complete?
Thanks for your help!
CJ
Your understanding about the process and taxation is correct for money to USA. Please note 15CB/15CA may not be required for gift to son. She may be able to send the funds just my making a request to her bank and signing a request form and purpose/gift declaration. Thanks.
Thank you so much Jigar! Really appreciate it!!
Hi
Can a nri be a partner in a LLP which is involved in construction of industrial and commercial property for leasing? If yes, does this need to be reported by the nri or does the llp need to report this.
What is the process for using your services and what are the annual costs, do you have offices in Mumbai?
Thanks
1. NRI can only invest in LLP after approval of RBI. While NRI can not invest in real estate business (buying and selling), NRI may invest in a project for development (construction) as per the FDI policy.
2. The cost of our service would depend on the scope of service. We serve clients throughout India from our Ahmedabad office. We do not have any office in Mumbai. Thanks.
Dear Jigar
I have withdrawn cash from NRO account and would like to depisit cash in my NRE account. Bank person is not allowing me to deposit cash and telling me to get form 15CB from CA. Plz let me know whether is its required to obtain from CA and is there any ltax liability on such deposit to NRE account
You can’t credit INR into NRE account. You can only credit foreign currency in NRE. Any transfer from NRO to NRE would require CA certificate. Thanks.
my son study in usa i have transffered 2000 dollar for edu fees sbi nri branch asked me for 15ca/cb.bank has no guidelines for remmitence of edu fees /medical tretment from itax dept
I don’t think 15CB/15CA would be required for education fees. However, if you can not convince the bank, I would suggest to provide the certificate as you have to send the money for fees. Thanks.
Dear Mr Naresh, Mr Jigar
I wanted to know what happens to NRE/NRO accounts held by a NRI if he surrenders his indian citizenship ? Does he need to get OCI card and inform the bank about the change in citizenship.
Thanks a lot.
Change in citizenship is not important. Only residential status is important. Also, you need to be an NRI under FEMA to open and maintain NRO/NRE account. The definition of residential status is different under FEMA and Income Tax Act. Thanks.
Thank you Mr Jigar for your reply. The information you have provided is really crucial. Thanks
Hi Sir,
I recently sold my property in India for 22 Lakhs, and after repaying my housing loan and I have received about 19 Lakhs, which I need this money in Canadaian Bank to repay my current debts here, so please advise procedures, Canara bank ( NRE and NRO account holder) to my current accountin Canada, Remitter and Receiver are same name.
Thanks
Please contact your CA as he would need to issue certificate in form 15CB and file 15CA to income tax department for you to transfer funds to Canada. Thanks.
Dear Mr. Patel,
Many thanks for being accessible and for making this information available.
I moved overseas 15 months back and am an NRI. I have recently opened an NRO and NRE account with a private sector bank. I would now like to transfer my savings in India from my resident Savings Bank account with a PSU bank to my new NRO account. Will this require any CA certificate or require any documentation ? Can i simply cut a cheque from my resident account to transfer funds into my NRO account ?
Very obliged for your response.
Regards
Also, I current recieve rental income in India, credited into my resident savings account. If the tenant were to credit this to my NRO account now, would he have to do any deduction or incremental documentation ?
Thanks
1. You are allowed to transfer cheque from resident account to NRO. Actually, if you tell your bank that you are now an NRI, your resident account will be red-designated as NRO account.
2. As you are only allowed NRO account and not a resident account, any income, including rent income is credited to NRO account only. Thanks.
Thanks very much for your response.
A lot of information is available online concerning transfer from NRO to NRE account but very less about transfer from NRO or NRE account to Resident accounts of Parents/Friends. Do one need form 15s to transfer money from NRO/NRE accounts to resident accounts ?
Thanks
No. However, such transfer to another person would be considered as gift so a gift letter/deed is advised. Also, as per Indian tax laws, a gift received from non-relative is included as income for recipient. You would also need to check the rules related to gift tax of your resident country. Thanks.
Thanks a lot for the information Sir. Have a good day !!
Hello Sir, Thanks for you blog, really helping one.
I have transfer amount to UAE – Dubai for technical service provided to india, whether tax to be deducted, Please request to reply.
Fees for technical service is subject to TDS. The actual rate would depend on the status of payee, whether PAN is available, counter-parties, when agreement was entered and could be 10%, 20%, 30%, or even 50%. I suggest you contact your CA. Thanks.
Hi,
1. my brother-in-law is NRI. His mother wants to gift him about 50 lacs. Can this amount be directly remitted to his account in US bank?
2. Does this gift amount need to be declared to US tax authorities and is any tax payable in US on this gift?
1. Yes.
2. Yes. Foreign gifts received is tax free for US residents. Thanks.
Sir,
My query is Whether form 15 CA and 15 CB under rule 37BB required to be issued in cases where the interest payment is made on debentures by an Indian company to FII and FPI after deducting the TDS under section 194 LD of Income Tax Act,1961 in Indian Rupees in Indian Bank Account (generally bank account are of custodian of FII and FPI).
If not, whether the same is required to be issued in subsequent transfer of fund from that Indian Bank Account to Foreign Bank Account by the custodian (of FII and FPI)
15CB/15CA would be required for any payment to NRI. So anyone making interest payment (company) would need to deduct TDS and issue 15CB/15CA. Thanks.
My client is a NRI. In 2011 he had invested in equities of a Pvt Company from his NRE A/c. Now he sells his investments and the funds net of TDS has come in his NRO a/c and he wants to repatriate the same to his US Account.
Is 15CA/15CB necessary as he will transfer the funds from his NRO a/c to his other a/c in US.
Yes. without 15CB/15CA, the bank would not know whether the tax as required is paid/deducted. Thanks.
– What is the TDS rate for interest payment by an resident individual (propietor firm) on rupee funds borrowed from NRI from his/her NRO account.
– Can NRO lend rupee funds from NRE account to resident individual ?If yes what are TDS rates
1. 30.9%
2. Yes. TDS would still be 30.9%.
Important to note that bank interest on NRE account is exempt. Any other income from investments made out of NRE account is taxable as normal provision of income tax act. Thanks.
Thanks.
Read 2 FEMA regulation on lending to resident by NRI relative ,pls clarify how they are different
– Under borrowing and lending regulations, INR lending is allowed to resident by NRI relative subject to interest ceiling and max 3 years . Is it referring to INR lending from NRO account only? Can INR funds source be from FCY remittance into NRO account,is there a ceiling in that case?
– Under borrowing in foreign exchange regulations, it says NRI relative can lend to resident for min 1 year with no Interest and upto USD 250000. Is it referring to FCY converted into INR from NRE account and on repatriation basis only.
Also pls advise if INR funds are given from NRO account, and interest is received in NRO account by NRI from resident, does it still need 15CA/CB forms?
1. Loan from NRO account for interest – Loan on non-repatriation basis.
2. Loan from NRE account to close relatives of borrower – repatriation basis can be credited to NRE account provided certain conditions are met.
3. In your case, as loan is from NRO and as interest is received, payment is considered taxable. Any payment to an NRI, whether taxable or not, would now require 15CB/15CA. Thanks.
Sir, whether form 15 CA and /or form 15 CB is required for transferring funds from own NRO account to own NRE account??
Yes. Thanks.
Dear Sir,
I am a tax paying resident of India. My sons are in USA. One is studying and one is working
I would like to remit 50,000 dollars to each as gift and for maintenance expenese
Do I need to file forms 15 CA and 15 CB or I can just remit through my Bank?
My Bank has not asked for the forms
I think the personal gift to children would not require 15CB/15CA. If bank has not asked the for the same, that is fine. Thanks.
Thanks Jigar, for this wonderful blog.
I am a NRI living in USA. I’d like to transfer from my NRO to my NRE in same bank.
As per rule 37BB, there are 28 purposes for which there is NO need of 15CA/CB.
My purpose Code is: S1301 (Remittance by non-residents towards family maintenance and savings).
Doesn’t that mean that Bank should simply transfer from NRO to NRE without needing 15CA/CB as my purpose is one of those 28 in the list ?
(SBI is the only bank that has implemented in their procedure and request form.)
Please clarify.
Thanks a lot.
Unfortunately, the bank would ask for 15CB/15CA. Either you convince your bank, or you provide the required forms. Please contact your CA. Thanks.
Hello Mr Jigar,
Your website and blog is really a gem. Great platform for knowledge sharing. Can you please help me in my queries concerning the outward remittance forms of Banks, we need to fill the DECLARATION under FEMA – which is —
1) The total amount of foreign exchange purchased from or remitted through, all sources in India during this calendar year including this application, is within USD ___________(USD in words____________ only) the annual limit prescribed by Reserve Bank of India for the said purpose.
* 2) Foreign exchange purchased from you is for the purpose indicated above.
* (Strike out whichever is not applicable)
What is the difference between these two options
What is the limit in USD mentioned in point 1
Are we supposed to tick and fill both the point ?
Thanks a lot
1. The limits are different for Residents ($250,000) and NRIs ($1million) and your bank personnel should be able to help you in this regard.
2. you should specify why you want to transfer/remit the funds. Thanks.
Sir, pls clarify as to whether form 15CA/CB is reqd. to file even if payment is made to foreign co. locally in India in INR.
Any payment to a non-resident – currency does not matter. Thanks.
Dear Jigarbhai
My brother, now a US Citizen (born and brought up in India) would like to transfer funds from his NRO Account of HDFC Bank to his NRE Account with Central Bank so that the same can be invested in Fixed Deposits without incurring 30.9% Tax.
Do I have to file Form 15CA and/or 15CB? The amount is around Rs 400000/-
Thanks
Yes. Your brother do. Thanks.
Hi, I am having offshore team in India working for a an audit firm in USA. When I get to receive a fund transfer from USA to India, is it require to report in US to IS? Please advice
I mean IRS in USA
This would be your business expense so you would report if it is required to be reported for any import payment/purchase of service. Please contact your CPA. Thanks.
For NRE repatriation -ie transfer of funds from NRE to my account in Canada – Do I need a 15CA /CB.
Thanks
Anna Mathew
No. Thanks.
A friend of mine has just got Lic Maturity of 20 Lakhs , credited in his NRO account, and now he wants to transfer that into Nre account,
Q.1) Will any tax be deducted, as lic is exempted from TDS , so any tax would be deducted ?
Q.2) Will bank ask for form 15 CB and 15 CA for transfer from NRO to NRE account?
Any payment to an NRI including NRO to NRE transfer would require TDS to be deducted/tax to be paid (if taxable), CA certificate in form 15CB and filing of 15CA. Thanks.
Can one remit funds from NRO to NRO accounts. Basically I have NRO accounts with two different banks and I want to put money from one account of my own to other account of my own. I have been doing in past and this time my receiving bank said that it cannot be done. I feel there is a confusion. Please advise.
Yes. There is no restrictions and no requirements. It can be done freely. Thanks.
Dear sir,
My uncle is NRI and he wants to transfer the money as gift from his NRE account to his son, who is also NRI.
Which law is applicable in this case indian or foreign ?
Is certificate required under 15CA & 15CB from CA for this transaction?
Thanks
As funds are in NRE account, no 15CB/15CA is required. He can transfer funds to his son’s NRE account or any bank account outside India. Thanks.
Dear Sir,
An NRI person sold a Flat in Nov 2007 for Rs. 77 Lakh (purchased in Mar 1994 for Rs. 850000) and transferred the funds in a Domestic Account. No ITR was filed then. Whether it is possible now for the Bank to transfer the funds to NRE account or not ? Whether the ITR needs to be filed first or what ?
Regards
Kanwaljit
1. You would need a CA certificate that tax on 77L has been paid. As you have not paid any tax, a CA would not issue the certificate and as a result, bank may not transfer funds to NRE.
2. You would need to file the tax return and pay tax including interest. As you have only 2 years to file tax return, you would need to also request the ITO to issue notice u/s. 148 before/with submitting tax return manually. Your case would be scrutinized and then you will be able to transfer the funds to NRE or remit the funds abroad. I suggest you consult an experienced CA from your city for the same. Thanks.
If Machinery (related to Medical) purchased from Japan,
Do we have to give/Submit Form 15CA/15CB?
What is the procedure. Please guide.
As 15CB/15CA is required for any payment to NRI, forms would be required for import payment to NRI or foreign company. Please contact your CA. Thanks.
Hi,
Great article. I have a question.
If NRI is selling property to resident, and buyer gives money to NRO account, do we still need 15ca/15cb for this transaction? The money will stay in NRO account only and not be repratriated.
Thanks.
1. The resident is required to deduct TDS before making payment to you. You will need to pay the tax. If you have already paid the tax, it is advisable to transfer funds from NRO to NRE and keep money in NRE as it is not taxable and no restrictions on repatriation.
2. Any payment to an NRI would require 15CB/15CA so whether you transfer the funds to NRE or keep in NRO would not matter. Also, TDS needs to be deducted before 15CB/15CA so by requiring 15Cb/15CA, the income tax department is certain of tax being paid on the transaction. Thanks.
Dear Sir,
One of my relatives is staying in USA for over 30 years.
She has received some amount in her recently opened NRO Account.
The said amount represents the transfer by her sister being a share in the Assets belonging to their father who expired about 3 years back.
Now she wants to transfer the amount from her NRO Account to her Bank Account in USA.
Please guide me about the procedure and Tax Implications.
Regards,
Sanjeet
If there is sufficient proof available of inheritance, there is no tax. Also, any gift from sister is also not taxable. However, a CA certificate in form 15CB and filing of form 15CA would be required. Please contact your CA. Thanks.
Is TDS for nri charged for capital gains amount or sale price?
On capital gain amount. The Question is who will determine the capital gain. If sale of equity or mutual fund or financial securities, the calculation is very easy and TDS on capital gain is deducted. In case of immovable property, it is advisable to obtain lower deduction certificate from the Income Tax Officer. Thanks.
Dear Mr.Jigar Patel
In the year 2011 ,I remitted funds from Overseas to my NRE account with Citi Bank and subsequently issued cheque from this NRE account to another bank in India to open FD.However the bank opened FD as a domestic FD and it remains as Domestic FD til now and TDS is being deducted at the time of renewal.As I want to avoid paying tax on this interest I would like to convert them as NRE FD.What is the procedure.
The FD’s are in my wife’s name who is also an NRI
For transfer funds to NRE account, you would need a CA certificate in form 15CB and file Form 15CA and provide copies of both forms to your bank. I suggest you consult your CA mainly because of following points:
1. If you transferred money before Dec. 2011, there was no mistake by bank as NRE FD rate was only 3-4% whereas savings or NRO FD rates were 8-9%. Also, as an NRI, the TDS needs to be deducted at 30.9% but you maintained resident account allowing bank to deduct TDS of only 10%. As a result, I would think you knew that the money was being transferred to a resident account.
2. Transfer of funds to spouse is treated as funds of husband and income is clubbed into the income of husband only as per income tax laws. Thanks.
Whether gift by my sister to another sister staying for about 30 years in USA attracts any tax?
The said gift amount is deposited by my sister in to NRO a/c maintained by my sister staying in USA and the amount is sought to be transferred from her NRO A/c to USA A/c.
Regards,
Sanjeet
Gift from sister to NRI sister is not taxable and is allowed by RBI to be remitted outside India under LRS. I would recommend your sister in India to directly transfer gift amount to sister’s account in USA. It would be faster, easier, and cheaper. Any foreign gift needs to be reported by US resident to IRS. Thanks.
My husband is a NRI based in Netherlands. He is doing a global MBA course for which he needs to remit fees to the university in UK. The funds are lying n his NRO a/c. Does he need to furnish Form 15 CA or 15 CB for remitting funds from his NRO a/c to the University’s a/c for education purpose. My understanding is that remittance to a University for education fees from NRO a/c does not require submission of 15CA/CB forms as it falls within purpose code S0305 of the specified list from Income Tax that do not require form 15CA/CB submission. Please advise if the forms are required or not. I would request you to revert urgently as the payment is delayed due to the bank’s insistence on form 15CA/CB. My husband will lose out on the course if he is unable to make this payment immediately. I have gone through your blog several times for different queries and found the explanation and logic very simple for a layman to understand and hence I am writing to you for some immediate assistance.
15CB/15CA would be required to ensure that no income tax is pending on the transfer. Many NRIs sale property and not pay tax and then remit the funds for one or other reason. So it was made mandatory to ask for 15CB/15CA for any payment to NRI or transfer out of NRO account. If you have money in NRO, I suggest you contact your CA who will complete the requirement and you will be able to transfer the funds quickly. Thanks.
Hello – thanks for knowledge share on this topic.If funds were initially invested in NRE account and later same funds moved to NRO, would 15ca and CB required if these funds were to be moved back to NRE? Thanks
Yes.
Hi All, I am staying in London and my parents in India and they are gifting me money and sending money to UK via Wire/Swift transfer from their Resident Account to my accounts in UK (I am not a India resident).
They are gifting money for my deposit to buy house in London. My parents having account with Punjab National Bank and Central Bank of India. They visited to branch and Banks said that parents need to fill up “Form 2A” and “FEMA Declaration” and “Form15CA and Form15CB” . My worry is that we dont want to get into complexion of Form15CA/CB.
Would they need to fill up Form 15CA and Form 15CB ?, Can someone please advise me.
Many Thanks in Advance Amit
Unfortunately, 15CB/15CA would be required now for remitting money abroad. CBDT has revised the rules for remitting money abroad that may not require 15CB/15CA for such transfer. However, the revised rules are effective from April 1, 2016. So if you can wait until then, you may be able to remit funds without 15CB/15CA. But if you want the money now, 15CB/15CA would be required. Thanks.
Dear Sir,
I am a NRI, presently residing UAE. I have some ICICI Prudential Insurance Policy. The capital gain of this policy is tax free. All the premium for this was paid from my NRE account. Now I want to close this policy and want to claim back my money. When I have request my bank to remitting the matured amount to my NRE account, they asked me to submit a TRC. Could you please help me how can I get a TRC. Is the TRC is from UAE government or from Indian Embassy of UAE? Do I need to submit 15CB/15CA as well?
Regards,
Swarup Pal
1. TRC is a Tax Residency Certificate and you need to obtain from the UAE government. Unfortunately, we won’t be able to help you for the same.
2. You need to check if the redemption of policy is taxfree. I think only redemption on death or maturity of policy would be tax free provided the conditions are met. If you pre-maturely close the policy before maturity, it may not be tax free.
3. Also, currently, any payment to NRI would require 15CB and 15CA so the payer / you would need to submit the forms for credit to NRE account. Thanks.
Pl clarify whether transfer from NRO to NRE is permitted on sale of property when
1. Property was acquired when the seller was a Resident;
2. Capital gains on sale of property have been invested in Capital gains bonds;
1. Yes
2. Yes
As long as an NRI has paid tax as per Income Tax laws in India, s/he is allowed to transfer funds from NRO to NRE on sale of property upto $1 million per year. Thanks.
Hi Mr. Jigar Patel
My NRI client has sold a property in India and wants to tranfers funds to Australia to his NRI A/c. When but I am filling his name in form 15 CA it says that the Remitter and the Remittee cannot be the same. How to fill the form in this case to avoid such error.
Thanks and regards
Sonal Khurana
CA
Remitter and Remittee can be the same person. All NRO to NRE transfer would have same remitter and remittee. Thanks.
Does transfer from NRO to NRE requires filing of Form 15CA or 15CB?
These provisions have been revised. Currently, 15CB/15CA is required for all transfers. Thanks.
you have said
Unfortunately, 15CB/15CA would be required now for remitting money abroad. CBDT has revised the rules for remitting money abroad that may not require 15CB/15CA for such transfer. However, the revised rules are effective from April 1, 2016. So if you can wait until then, you may be able to remit funds without 15CB/15CA
Can you please give link to CBDT circular which says that 15CA/15CB will not be required after april 2016 for transfer from NRO to NRE account
CBDT notification 93 of 2015 dated Dec 16, 2015. I plan to write a blog on the same this month. Thanks.
Sir,
Transfer of funds from NRO to NRE
I have been an NRI living in Dubai for the last 10 years. . I had sold a plot of land in Bangalore in 2012 and invested the proceeds in capital gains bond of NHAI & REC. After the maturity in 2015, the proceeds ( about 40 lakhs including interest) were credited back in NRO account. I have declared the interest on these bonds and paid tax thereon. I am planning to transfer the funds to my NRE account during Jan/Feb 2016. Whether I need to submit 15CA / 15CB ? If yes, whether only Part D of 15CA is applicable, as these funds are “not chargeable to tax” ? Or can I declare this transfer as ” Remittance by non-resident towards family maintenance and savings ” as the funds would remain in NRE account as my savings ? What would be the scenario after April 2016 ?
Currently, 15CB/15CA would be required. The new notification is applicable from April 1, 2016. Thanks.
Hi,
My mother gifted me 25 lakhs as cash and she transferred amount in my NRO account from her account. I would like to bring this cash to US bank as I am buying a house her e in US. Is this money not taxable as it is gifted by my mom?
Yes, the money would not be taxable. However, you would need to declare the same to IRS as foreign gift. Also, as money is in your NRO account, you may also need a CA certificate in form 15CB and file form 15CA for transfer to NRE or your account in USA. Thanks.
Dear Mr. Jigar Patel,
I am a NRI living in USA and have NRE and NRO accounts in India. I have been investing in Indian market and real-estate either writing check from my NRE or withdrawing cash from it. I am considering making large investments in India in lands and share market; in other words moving major USA investments to India for many years to a decade. I understanding I can write a check from my NRE account and whatever interest learned is taxable in India. All investments in my name. Few year later when I decide to bring back to USA bank account:
1. Is the only way is – I have to put the money in my NRO and transfer to my NRE account with 15CB/CA form?
2. Should I have to pay tax in India only for the profit made on my investments OR on the entire money which I shall be depositing to NRO?
3. If it is only on the profit in this case, should I have to save the transaction in my NRE account initially made during the investment? because it could be a decade before I get to it.
4. If it is taxed on the entire money going to NRO in this case, isn’t it double taxed as originally funded source NRE is already taxed money? How it is accounted while certifying in 15CB/CA.
I much appreciate your information and advice.
Thanks!
1. You can invest from NRE and on sale of asset, money can directly be credited to your NRE account. However, certain procedures to be followed and conditions/requirements to be fulfilled.
2. Tax is on income only. And, India offers really good investments to earn tax free income in India. Ofcourse, you would have to pay tax as per your country of residence.
3. with limited information, I am sorry that I am not able to give you straight answer to your question as it depends on a lot of things including where you want to invest, how you want to invest, whether taxable income and what you want to do with the money. Also FEMA and Income Tax act would apply.
4. Tax is only on income so no need to worry. If income is taxes, TDS would have been deducted and 15CB/15CA would be issued accordingly. Thanks.
My client is a non resident and has sold the property in India inherited from Uncle. Now in her NRO A/c she doesnt have entire sale proceeds since she has made payments top CA, lawyers etc. She wants to transfer the balance amount in her NRO A/c to American Bank in USA. Now in 15 CB what should I mention “transfer of sale proceeds” or NRO to NRE transfer?
And which Amount of TAx should I consider? Capital gain or sale proceeds?
I would use “Transfer of NRO to NRE account of funds on sale of property”. As long as TDS is deducted and tax is paid, the transfer is capped to the maximum amount (sale proceeds less TDS/tax) provided other conditions are met (e.g. <$1M). The client may choose to transfer upto that amount. Thanks.
Hi,
I have a one query here and I hope, you can help there –
As being NRE/NRI account holder, May I allowed to loan to a private limited company in India where I am a 50% share holder and director?
In return, Am I eligible to repatriate principle amount PLUS any interest earned on the loan amount?
Please advise, what is best routing to make this transaction?
Also, what should be loan duration?
Loan to private limited company may not be allowed by NRI. A company may accept deposits under a private agreement. However, any such loan/deposit would be on a non-repatriable basis only. I would not recommend. Thanks.
We want to transfer fund from NRO to NRE Account amounting exceeds INR 250,000 during a financial year. Do we required to file Form 15 CA/15CB for every transfer?
Yes. As per current requirement. I would suggest you to transfer the funds in only 1 transaction to save cost, time and procedural hassles. Thanks.
My cousin was earlier an NRI who sold his property in India before moving to US. Out of these sales proceeds he has invested in the following:
1.Capital Gain bonds REC bonds to reduce capital gains on property sale
2. Debt Mutual funds
3. Fixed deposits
4. ULIP policies
It would be really helpful if you can throw a light on how these funds can be repatriated abroad when he converts his local savings account to NRO account.
1. As an NRI, he is not allowed to maintain local resident accounts.
2. An NRI is allowed to remit upto $1million from sale of assets and savings outside India per year, subject to certain conditions and procedures (especially CA certificate in Form 15CB and Form 15CA). Thanks.
Sir,
Thanks for this blog.
I understand that from Apr 1, 2016, 15CB will not be needed for certain NRO to NRE transfers. My question is, will the following transfer still need CA certification under 15 CB after Apr 1?
I (NRI in USA) wish to transfer funds from my NRO to NRE account. The funds were received via inheritance in 2011 (upon passing away of parent) and has since been continuously invested in debt based mutual fund on which TDS has been deducted at the time of redemption and now is in NRO acct. Amount is 55 lakhs.
I read the Dec 2015 circular and it seems only up to 5 lakhs can be transferred without CA certification.
So my question is:
1) After Apr 1, can the full 55 lakhs be trf’d from my NRO to NRE acct WITHOUT 15CB? As I said, TDS has been paid on full amount.
2) Or is it only up to 5 lakhs per Fin Year?
Thanks again for your help.
As you would be transferring sale proceeds of security, that may result in a capital gain, it would be considered as a taxable transfer and 15CB/15CA would be required. Thanks.
Dear Sir
I have to receive funds from an Indian company to my company based in UAE, as commission for services rendered in UAE
Do i have to furnish TRC certificate.
Thanks
Chris
I think it would be not taxable. If not taxable, TRC may not be required. However, every company requirement could be different. Thanks.
I accidentally transferred the money to my NRO account. Can i get that money to be transferred to my NRE account by filling Form 15A and 15B? I have transferred more than 10L.
Yes, you can. Thanks.
Hi
I am living in Dubai and have nre and nro ac in india. I have transferred the fund to third party from nre account. Now the third party has paid the same in the nro account with some interest amount. now I want to shift the fund from nro to nre. what are tax implication and whether I require 15ca/15cb. fund flow is nre to third party and from nro to nre
Tax is on income so you would pay tax on the interest received. Also, please note that any loan to third party can only be on a non-repatriable basis and certain rules/restrictions related to use of funds, time, term, rate of interest needs to be complied with. Thanks.
sir
I have a query. Please solve it.
If an indiviual having saving account in india. and he wants to transfer money from his saving account to his account opened in canada and the amount is 96 lacs in form 15ca/cb. whether it is taxable or not in india.
Tax is only on income. There is no tax on transfer from your one account to your another account as it does not generate any income. However, as an NRI, you are not allowed to keep savings account but redesignate the account as NRO. From NRO, after 15CB/15CA, you (an NRI) are allowed to transfer upto $1million per year from your savings or sale of assets. Thanks.
Sir,
I Need to know, my real brother transferred me 8lacs from his NRE Account to my NRE account. Is it taxable ? or my brother needs to file TDS under 195 ?
we both are NRE and working abroad.
rgds
Any gift from brother is not taxable in India. And TDS does not apply. Also, interest on NRE account is exempt from tax in India. Thanks.
I have 2 questions:
1. My mom is a US resident and I am a US citizen, she needs to send some to me from her savings account in India. We have filed the 15 CA/CB forms. I need to know if I would need to show it to IRS? Is there any limits applied to this transfer? Do I need to pay any additional tax on this gift?
2. My mom needs to move some additional money to support her from her savings account in India to a joint account in her and my name in US. Is this allowed and are there any limits applied to it? Are there any additional taxes that she would need to pay for this transactions?
Thanks and Regards,
Amit
1.As an NRI, your mother is not allowed to keep resident savings account.
2. While there is no gift tax in India, you also need to check the gift tax laws of USA as gift giver (your mother) is a US resident. In USA, gift is on a giver over a threshold amount unless it is reported to IRS and adjusted against the lifetime gift limit.
3. Tax is only on income. As per Indian laws, she can transfer funds after 15CB/15CA. Please note that any transfer from your mother’s account to yours may be considered as gift. Please consult your CPA. Thanks.
I received a letter from ITD saying information summery for the PAN
it mentioned information code – TDS – 195, TDS return, payment to Non residents section 195.
I am an NRI and i did transferred fund to my brother’s NRI account.
am i taxable to this.
It appears that the bank would have deducted TDS on the interest paid to you. TDS is deductible also on the NRO saving account. Any gift to brother is not taxable in India. Anyway, the gift tax is on receiver and not on giver in India. Thanks.
I want to transfer 65 lacs to my mother’s account from Dubai. I am an NRI. But she wants to buy agricultural land with this cum of money in her name for her business. Is it possible? I read that NRI cannot invest in agriculture. So will it be a problem if I help my mother in this venture through a Foreign remittance?
Looking at the quantum of transfer, I would assume, this would be in the nature of a loan. A resident is NOT ALLOWED to borrow funds from NRI to invest in agricultural land. Please don’t do that. Thanks.
A friend of mine wants to give me loan of about$81000/-from USA to me,here in INdia.Can i get the loan?after 3 years,how can i pay back?What are the formalities to be done to Reserve Bank of India.Your advice will be appreciated.Thks in advance.Kindly oblige by answering.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
It is allowed subject to FEMA conditions related to term of loan, rate of interest, use of funds, restriction on repatriation, etc. Thanks.
Pl guide, one of my friend an NRI want to transfer about 55 lacs from his NRO account to one of his relative who is resident of Russia, presently residing in London. Funds in NRO account are maturity proceeds from FDR . Can he transfer this amount without obtaining 15CB.
I would suggest to transfer to NRE account first and then transfer to other relative. In both situations, 15CB and 15CA would be required. If you can wait until April 1, 2016, the procedures are expected to change as per revised notification. Thanks.
Hi Sir,
I am an NRI (US). I have NRO and NRE accounts.
I have a car in India and I would like to sell it and transfer the funds to US.
I have two questions.
1. Are the funds from sale of car taxable in India?
2. Are the outward remittance funds from India to US are taxable in US? Are there any limits for non-taxable funds from India to US.
I would like to transfer funds (14,000$) from India to US.
Regards,
Venkat
1. Only if it is capital gain. However, usually it results in a loss.
2. Tax is on Income and not on transfer. However, any transfer would require CA certificate in 15CB and filing of form 15CA. Thanks.
If the funds are transfer from NRO to NRE towards family maintenance, still one has to provide the 15ca/15cb form? if not then what is the process?
Yes. All transfer would require 15CB/15CA. If it is really for family maintenance, it should go directly to foreign account and not to NRE. Thanks.
Dear Sir
My friend she is an NRI has sold her property and get Rs. 260 Lacs approx in her NRO account after the tax deduction for Approx. 70 Lacs. Now wanted to transfer the funds to NRI account and her tax liability shall be less than the amount of tax already deducted.
My question is : 1) she is require to get 15CB and file 15 CA
2) she will file the return and claim refund showing Long Term Capital Gain taking the benefit of Indexing cost.
Thanks
Lokesh
1. Yes
2. Yes
Please contact us if you need any help in filing tax return, claiming refund, NRO to NRE transfer or for tax-efficient investments or foreign compliance. Thanks.
Dear sir,
One of my friend is having an nro account and he wants to transfer funds of 35 lakhs from nro to NRE.
Initially he transferred 20 lakhs from NRE to nro for a property purchase and he sold that property and aftet selling the property got a capital gain of 15 lakhs which to nro account. Which is total 35 lakhs ,but he wants to repatriate only that 20 lakhs which he transfered from NRE to nro. Whether he need to provide 15Ca/CB if he wants to send only 20 lakhs???(he don’t want to repatriate capital gains)..kindly resolve my query sir..
Technically, 15CB/15CA would not be required to directly credit the money in NRE account, provided he is claiming the repatriation facility available for 2 residential properties hold for a long term. However, as the money has already been credited in NRO, I think the bank would require the same to be on a safer side. Thanks.
I wish to repatriate interest earned on my NRO deposits. Form 2A is asking for Purpose Group and Purpose Code. Is 12 purpose group code and s1402 purpose code correct? Appreciate your guidance
Thanks
Please contact your Bank as it is the procedural requirement of the bank. Thanks.
Dear Sir,
My client (Indian) together with a foriegnor, incorporated a pvt company, opened a joint account with federal bank. foriegnor transfered 7lakhs to the joint account. the indian director took the money with the Foriegnors consent. now indian director wants to pay back the amount and the forignor is in Germany. can we repay the amount with 15ca/cb.
1. I am not sure if this is a current or savings account.
2. Also, if the foreigner transferred funds as a capital contribution (FDI), RBI needs to be notified of issue of shares and related compliance needs to be made.
3. Without much information, I would think your client would be able to credit the funds in the joint account from where it was withdrawn, provided it was not NRE account. Thanks.
Hi,
My client, a Pvt Ltd company, has received a sum from the relatives of Directors through NRE account in India towards pre-incorporation expenses. Later, it was shown as ‘unsecured loan’ in books of the company. Now, that the company wants to repay to their NRE a/cs in abroad. My queries are as below:
1. Is it possible to remit back the amount from the Company’s account to NRE a/cs?
2. If yes, what should be the nature of remittance in 15CB?
3. Do we have to link with the FIRCs received prior to incorporation of the Company?
Please help in resolving this at the earliest would be much appreciated.
Thanks
Savitha
A. I think there are stringent requirement for NRIs to give loan to private limited companies.
B. Without regard to A above,
1. I don’t think so.
2. Loan return
3. If FIRC was received, please check the purpose of funds and related FEMA rules and proceed accordingly. Thanks.
Dear Sir,
One of my client who is a foreign individual worked in India for the period 2008-2011. He withdrawn his PF amount and deposited the same in his bank account (saving account) in India in 2012. Bank credited interest on the same fund without deduction of TDS. Now he want to transfer his complete fund to his foreign account. Interest earned for all the 4 years (2012 – 2016) is within the tax free bracket, around Rs. 2 Lacs / year. Should TDS be deducted while transferring fund to his foreign account. Do we need to show TDS applicability in this case in Form 15CB.
1. I would think he first needs to change his residential status in the bank to NRI and his saving account to NRO. Only then he is known as NRI. The rules are different for residents and NRIs. Also, as NRI, TDS @ 30.9% is to be deducted also on the savings account.
2. Technilcally, TDS @ 30.9% needs to be deducted on resident savings account but he can file his return and claim the refund of tax deducted so he would not have to pay any tax as his income is less than 2L.
3. I don’t think 15CB would be required from April 1, 2016 as the transfer would not be taxable. Please check my latest blog. Thanks.
Dear Sir,
We have remitt dividend in foreign currencies in NRI
can you tell me 15CA or 15 CB required?
Please elaborate. I am not able to understand your situation. Thanks.
hi
pls advise if I invest proceeds of my property sale in NHAI bonds then after 3 years, do I have to buy property again of similar amount or is it capital tax exempt.
thanks,
Yes. NHAI bond exemption was for sale of property now. If after 3 years (on maturity of NHAI bonds), you invest and then sell after 3 years, the capital gain is on the newer property. As you only invest the gain amount, you would still need to invest again to save capital gain tax on newer property. Thanks.
Dear Sir,
A very good morning. Very useful inputs with respect to new amendments from April 2016.
A client of mine wants to transfer around 35 laks from NRO a/c to his foreign a/c, reason being family maintenance. As per RBI circular,it comes under serail no. S1301 which is part of 33 items exempted. Does he need to fill up/submit 15CA/15CB?
If yes, the above serial no. s1301 does not appear in the drop down box given in the new formats of 15CA ( Part-D) and 15CB. Could you kindly throw some light?
Thank you
Also, if nature of remittance is included in the specified list, there is no requirement of 15CA/15CB, so the purpose code would not be included in the 15CB drop down list. However, bank may not agree to remit under S1301. Thanks.
Dear sir
My client wants to transfer funds from NRO to NRE account,for which while iam preparing Form 15 CB in point no :6 under nature of remittance drop down,which is the appropriate to select for the said transaction,and also for the Point No:7 ,purpose code under RBI.
Thanks in advance
15CB may not be required for any non-taxable transfer so the purpose codes are not included. However, you would need to understand the source of funds in NRO account and use the purpose code accordingly. Thanks.
I am an NRI from the last 5 years but never got time to convert my savings account to NRO. MY dad (with my power of attorney) sold one of my property in india with no capital gain and the money got credited to our savings account. TDS of 1% was deducted on this sale.
Can I now convert my savings account to NRO account and then file 15CA & 15CB to bring all money to US?
1. Yes. CA needs to be careful how 15CB is to be issued.
2. Please note that the TDS of 1% is for residents only. For NRIs, it is 20.6%, if certificate for lower deduction is not obtained. Thanks.
For Transfer of Funds from NRO To NRE account
1. Is 15 CB required ( Amount to be Transfered are tax paid funds Eg Sale of Ornaments , Gift from Mother)
2. What is relevant code to be mentioned in Form 15 CA in regards to RBI code to be provided?
1. Sale of ornament is a taxable transfer so I would say yes, 15CB would be required. Mother can gift directly from her saving account to your account in your home country. The requirement of forms and documents would depend on the bank.
2. It would depend on how you report or issue the certificate/documents and would depend on the nature of payment. For 15CA, you would just use the information entered by your CA in from 15CB. Thanks.
Which purpose code would be required if its transfer of Rental Income from property in India for 15 CB or 15 CA certificate after selecting income from immovable property as per Income Tax Act,1961 ?
I think it would be rental income or income from immovable property. Thanks.
SIR,
one of my friend wants to remit funds to usa, he has obtained the funds by will or we can say these are inherited funds.
do i need to file form 15ca and form 15cb
and if yes what should be the rbi code in the form 15ca.
kindly do reply.
thanks in advance.
Technically, your friend would not need. However, the bank may not agree so you would need to convince the bank. If you can’t convince them, you would need to provide documents and information as required by the bank. Thanks.
I SOLD PROPERTY IN INDIA AND INVESTED ALL THE LONG TERM CAPITAL GAIN IN BONDS AND GET EXEMPTION I RECEIVED SALE CONSIDERATION IN MY NRO A/C NOW I WANT TO TRANSFER THE SAME INTO MY NRE ACCOUNT SO WHAT SHOULD I FILL IN THE FORM AGREEMENT BETWEEN WHOME AND WHOME AS ITS TRANSFER OF MONEY FROM ONE ACCOUNT TO ANOTHER.
KINDLY ADVICE
Please contact your CA. The form 15CB needs to be filled up by him. He will guide you about transfer of funds to NRE. I would also suggest you to contact your bank and understand the procedures. Thanks.
My company want to remit $ 40,000 to USA towards insurance charges. Company have to make the same in 4 instalments , $ 10000 each. Can i take one 15 CB from my Chartered Accountant for $ 40,000 and utilise the same for 4 payments.
You would need to understand the details, especially whether payment is taxable in nature or not as per Indian tax laws. If not, 15CB may not be required. I can’t tall whether insurance is for goods or other. If goods, it may not be taxable. Thanks.
I have an NRO and NRE bank account with ICICI bank.
I did a mistake by sending $ from USA after tax to NRO account instead of NRE account.
I want to transfer funds from NRO to NRE. Bank asked for Form 15 CA and CB from CA.
However they also need source of funds.
My point is I will show the source of funds to CA and then he will sign 15CA and CB, why does a bank need those?
If there is a direct transfer from USA, you can show that the source of funds is USA. I don’t think 15CB/15CA would be required so please follow up with bank. If you can’t convince them, you would need to provide the forms. Thanks.
I am an NRI. I transferred an amount of Rs 17,00,000 from NRE to NRO in 2008-09 since the interest rate on NRE was very low knowing that there will be a TDS on NRO. But I have transferred this amount back to NRE in 2012. How can I claim the tax return on this NRO. For how long I have to file this?
You have 2 years to file your tax return and claim refund. For any refund / tax return not filed for income older than 2 years, you need to request the IT officer to condone the delay in filing the return and follow little lengthy procedures. You are allowed to claim your refund for upto 6 years. Please consult your CA. Thanks.
I had some old savings in India with my mother. She passed away in 2011 and I transferred the money to my NRO account. Since then I have made remittances in US$ to the same NRO account for sundry expenses in India and supporting relatives. Now I am in need of some funds here to support my son’s education. Please advice the process to transfer the NRO balance to my NRE account and repatriate the money to USA? Thanks
Please consult your bank and follow their procedures. While you may not need 15CB/15CA, the bank would ask for the same. Please try to convince them. If not, you will have to provide the same to the bank with fund request letter to transfer funds. Thanks.
Hi
I am an NRI and purchased a property in mumbai sometime back. As my parents were living in the property I put their names too as the owner of the property along with my name. After my father passed away the property vested in my mom’s name and my name as 50 % owners. I subsequently sold the property and both my mom and myself invested in REC bonds to claim tax exemptions. My mom has recently moved abroad with me but still files her income tax in India as a resident Indian. My taxes in India are filed as an NRI.
I now want to transfer the full amount of the REC money on maturity (my moms and my bond money along with any interest) to my account abroad. I will be able to get a form 15CA and CB issued for both my mom and myself. Am I able to do so? I read that under the Liberalized Remittance Scheme my mom can gift the REC money to me. However, I am not sure how this is facilitated. Can she directly transfer the money to my NRO account in India from her savings account . I can then transfer in one remittance the full amount from my account to my account abroad. Please advice.
As your mother lives in USA, she is an NRI and LRS does not apply. LRS is only for residents. There is no need to gift the money. She can remit funds in her name and transfer to her bank account outside India. Thanks.
Hi, I’m a NRI living in dubai. After few weeks I am planning to dispose my property in India and thinking to transfer the money to NRE account. I googled and found that if i am holding an NRO account, i will able to transfer to my NRE account thro NRO.. Is this true? if so is there any tax applicable for my transaction?
Yes, but only after CA certificate in form 15CB and filing for 15CA, which can only happen after TDS/payment of tax. Thanks.
Dear Sir,
I am an NRI and have both NRE and NRO account in India. My husband who is also an NRI has inherited an amount of 25lakhs rupees from his mother. He wants his mother to transfer this amount to my NRO account. I would like to know if the total amount can be deposited to my NRO account in one instance or is there a limit to deposit in my NRO account in one instance. Will it attract tax? If so how much. If I transfer this amount once deposited in my NRO account to my NRE account will it still attract tax?
Inheritance is received after the death of person. During the lifetime, it is called gift. Husband’s mother is not considered as a relative under FEMA and is not allowed. Also, gift to daughter-in-law would attract clubbing provision under income tax act. I would not advise to transfer to your account. Instead, transfer to your husband’s account. However, if the transfer is being made after death under WILL, it would be okay. Thanks.
Sir,
my brother have purchased property from NRI. He got Certificate u/s 197 from NRI for non deduction of TDS. Hence without deduction he transferred amount to NRI’s NRO account in India.
1. Whether my brother (purchaser) should file 15CA & 15CB (as amount not transferred to foreign but in India)?
2. Whether my brother (purchaser) should file Form 27Q (TDS deduction statement) showing transaction and 197 certificate no?
1. No. 15CB is a certificate and is issued by a Chartered Accountant. It is okay if his CA would issue the same.
2. As no deduction was made, no need to file the form. You can confirm with the CA. Thanks.
Your blog is quite helpful.
If a NRI gifts money out of his/her NRO account to his/her NRI son’s & thereafter the son remits that money upto USD 1 million to his US bank account. Is form 15CA/CB are applicable or any authority ie. Income Tax Officer / RBI are to be informed?
I would think so as how would bank know the source of funds. I would recommend you remit funds to your NRE account and then gift. Thanks.
My son is going to USA under F1 visa for higher studies. For his studies, my Uncle (Father’s elder brother) who is an MRI based in USA is going to gift my son $20K by cheque in USA. My son is a major and holds PAN card . (1)Will their be any tax implication on my son either in USA or India? (2) What are we suppose to do with my son’s PAN card? What do we have to with his bank’s saving account?
Please inform.
Thanks
Ketan Shah
1. Your son would be an NRI after he leaves India. Your Uncle may gift him outside India as according to US tax laws, gift can be given to any person upto $14000 per year per person. So husband & wife can together gift $28000 to your son without attracting any US gift tax.
2. As your son would be an NRI, you need to change his status to NRI and inform IT, banks and other financial institutions and hold all accounts and investments as NRI i.e. his resident savings account would become NRO account. Thanks.
Thank-you for your helpful comments.
In the same case, if the fund ( $20K) is made as a refundable interest free loan by my uncle to my son in USA then what are the tax implications in USA. A written MOU will be exchanged for treat this money transfer as loan.
Please inform.
Thanks
And in case of Gift do we have to make any document for record? If yes does it have to be on a plain paper or some Stamp paper?
Please inform
Thank you
Please in
I would recommend to have a gift letter/deed. Plain paper is okay. Signature of both is required. Thanks.
Tax is only on income. No tax implication on interest free loan in USA on uncle or your son. Thanks.
Thank you for enlightening us.
My son will open a savings account in USA and may hold some fund in the account for his general use. Though very small proportion, but he may earn interest from saving account. Will he have to pay tax on such interest earned? If yes what is the tax slab?
More over he may also earn from his on campus work or from teaching assistances. Does he have to pay income tax on such earnings?
Please inform.
Thanks
Any income, your son would have to pay tax and file return. Thanks.
I am selling an inherited property jointly owned by me (NRI) and my father (Resident Indian). The property was originally owned by my grandfather and then by my father and aunt jointly (inherited). The share certificate was transferred to me and father in 2003. However it was not registered. We are going to register and sell it this year. Will it be short term or long term? Also kindly guide me with the TDS%
1. I would need to review the agreements or deed or any documents for us to guide you better about short term or long term gain.
2. For your father (resident)’s share, TDS @ 1% will apply; in your case, an NRI, TDS would be deducted @ 20.6%. Thanks.
Hi,
What if the buyer is only deducting 1% TDS? Can I as an NRI seller pay the advance tax when I get the money from sale proceeds of property in India?
It is your responsibility to tell the buyer that you are an NRI living out of India. If you hide the fact and only indicate that you are a resident, it is your responsibility. If you tell him your NRI status and indicate the same in the agreement, you have done your duty and it is the responsibility of the buyer to deduct 20.6% TDS. However, if he only deducts 1%, you can pay the remaining amount (based on the capital gain) and take the after tax money to out of India. Thanks.
Hi Jigar,
Greetings !
I have sold my property in India on March 2014; However within 6 months I have took another property in India. Now I have some savings in India account. So can I bring those savings to Australia through Form 15CA / 15 CB on account of Property sold in India during March – 2014.
Your help is much appreciated !
Thank you,
Nilesh
Yes. I would think you have paid taxes, if any. Thanks.
I have taken loan in nro from Lic which needs to be transferred to nre,pls confirm tds which needs to be deducted
Loan can not be remitted abroad and can not be transferred to NRE account. Thanks.
Hi Jigar
I have NRO and NRE savings accounts with same bank. I remitted funds into NRO from abroad and do not have any other funds lying in that account. Now I need to remit those funds from NRO to NRE. Do I still need forms 15 CA/ CB or I can do under S0131 remit code?
Thanks
Aditya
Please check with your bank as you would need to provide forms and complete procedures as required by the bank. You may also consult your CA. Thanks.
Dear Sir,
My client who is a US resident has an NRO and NRE account in India. He recently sold a property in India and transferred the funds to NRO account. Now he wants to withdraw the said funds from NRO account and give the withdrawn amount to his friend in India as Unsecured loan. Can you just brief me about the procedure to be followed in this case?
1. I would assume the TDS @ 20.% would have been deducted. If not, please pay the income tax on sale of property to the Indian government before next advance tax date. He would also need to file the tax return.
2. He may loan to his friend. However, conditions relating to loan on non-repatriable basis (term, use, rate of interest,etc.) as per FEMA rules needs to be met. Thanks.
Dear Sir –
I hold savings a/c back in india and didn’t get chance to convert the same to NRO a/c when I moved to USA 4 years back. My savings a/c have the money that I earned in India as salary. I had payed the taxes on that money when I was employed and still paying taxes on the interest earned on that money.
Now I want to convert that savings a/c to NRO a/c. After converting, I plan to repatriate that money. Do I need to fill forms 15CA/CB for the same.
Thanks,
Vikas
Yes. The money can be transferred only the income tax, if any, has been paid. As bank would not know, a CA certificate would be required so you would need to have your CA issue a certificate in form 15CB and file form 15CA to transfer the funds. Thanks.
Hello Mr.Patel,
I have sold a residential house property in India. The sale proceeds are approximately US $ 300000 ( Rs 2 Crores ). All the taxes have been duly paid. I want to repatriate the money back to the US.
1) What is the limit of the money that I can repatriated to the US ?
2) Can I repatriate all the money( US $300000) in one transaction .
I understand that I need to have the 15CA and 15 CB form.
Thanks in advance for your advice.
Regards,
Hari Gupta
1. Provided all the taxes have been paid, an NRI is allowed to transfer (remit) upto US$ 1 million per year outside India.
2. Yes
3. Yes, Please contact your CA and he will help you for the same. Thanks.
Hi
Could you please let me know, do i need to submit any proof/document for any amount obtain either from property or rent to bank before the amount is deposit to NRO account?
No proof is required for crediting into NRO account. However, bank may ask sometimes for unusual transaction or amount randomly. Thanks.
Sir, Kindly let me know the latest rules for NRE- NRE third party transfer?
Is there any restriction for NRE to NRE third party Transfer amounts?
There is no restriction for transfer from one NRE account to another NRE account. However, the nature of transfer needs to be determined i.e. gift, loan or income and related FEMA and income tax rules are to be complied with. Thanks.
Sir ,
I have purchased a flat from NRI and after deducting TDS I have transferred part payment to his NRO account . How ever bank didnt asked and also I havent filed fom 15CA/15CB am I liable to file the same?
While you are, it may be okay as the NRI would ask his CA to file 15CB/15CA if he wants to transfer funds to NRE or abroad. Thanks.
I had a question i am NRI currently living in the GCC Country and have taken a Loan from India, i have paid all the payments for taxs and transfer fees now i am told before transferring the loan i need to pay for a certificate and was wondering if this is correct?
The loan amount can not be remitted abroad. Thanks.
My Husband shifted to Gulf country for job in Dec 2006
• My self is having NRI status from 2008 as I got shifted to Gulf as depended (housewife)in March 2007.
• Then onward my Husband and Myself (Joint ) has open NRO and NRE account in 2007 (Joint account) in indian Bank -SBI and started transferring fund to india in NRE account.
• As in year 2007 , the Indian bank is having less than 4% interest rate in NRE account , However NRO account is having average 9% interest rate for the FD’s.
• So, Many NRI’s use to transfer fund from NRE to NRO and book FD’s and pay IT as per regulation.
• We have also transfer fund from NRE to NRO and booked multiple FD’s on joint name (self /husband as joint holder Or my husband name /mine as joint holder)on to earn high interest rate and pay IT as per regulation.
• However in year 2012 the interest rate on NRE was also increased by RBI (around 9 %)and As per RBI guideline/scheme of May 2012 to allow transferring of fund from NRO amount back to NRE amount and book FD in NRE account below prescribe limit.
• So in year 2013, we have prematurely break the all NRO FD and transfer fund back to NRE account (about 65 lakh) by fulfilling the 15 CA and 15CB certification from CA and then after rebook the FD in NRE with Joint account holder( my husband name /mine as joint holder)
• Also, In year 2013, we have sold the our flat (joint holder) in Surat (@8.5 lakh) which was purchased in 2003 and Now rebook new flat in Mumbai (joint name).
• Total Flat sold amount in half was shown while filling the return in both (myself and my husband ITR).
One Mistake is our CA has shown my status as Resident Indian and my husband status as NRI while filling the return , However my bank status is NRI from 2008.
• Now we have got letter from IT office to report as they have query related to ITR 2014 (13-14) on subject So Kindly guide us how to come out from the above issue and explain how and what to represent.
You would need to understand the query raised by IT department. I don’t think residential status would generate a query. The query would be for either NRO to NRE transfer or reporting of capital gain. Please contact your CA and understand. If you have truthfully reported all your income and paid the tax, you do not need to worry. Thanks.
I have prematurely break the all NRO FD which was originated from NRE fund and transfer fund back to NRE account (about 65 lakh) by fulfilling the 15 CA and 15CB certification from CA.
Kindly advise the income 65 Lakh is to be considered as part of income or no.
we have paid all required tax on the interest earn through FD’s
Only interest is your income. The Principal is your after tax money and not your income. So, if you invested 60L and got 65L, only 5 L is income. And as you have paid all the taxes (TDS on NRO interest), you do not owe any tax. Transfer of funds from your one account to another account is not an Income. Thanks.
I am working in OMAN. I have deposited earned salary in NRO Account. Now i want to transfer the same to NRE account. Whether i need to deposit any tax on the same.
There is no tax on transfer of funds. Tax is only on income. However, you may need to provide a CA certificate in form 15CB and 15CA and provide documents as required by the bank. Thanks.
Hi Sir,
Are you based out of uae if so please pass your number or if you know of some one who can assist here in dubai to repatriate the funds from NRO acc to uae.
please advise
We are based in Ahmedabad, India. We help NRIs from all over India who are based in all over world. Please contact if interested. Thanks.
Hello Mr. Jigar,
I will receice Rs 70 lac (gift money) from my grandmother as my share from sale of our old property.
here are few things i want to know :
1. Do i need to pay any tax on this gift amount if i want to remit it abroad ?
2. If i make FD of this gift money and earn interest on that. Do i need to submit form 15CB and 15CA for tax on interest reveived on the fixed deposit amount before i remit this money abroad?
Regards,
Rahul Verma
1. There is no gift tax on your grandmother or you.
2. Please note that someone has to pay the tax. If your grandmother is paying tax on the property, you don’t have to. However, if your grandmother is gifting you a share in the property, that you sell, it becomes your property and if you sell, you would pay the tax. Please note that gift of agricultural property from resident to NRI is not allowed.
3. The income on FD would be yours so you would need to include the same in your income tax return in India as well as in your resident country, if you also need to pay tax on your global income.
4. For any taxable transfer from NRO to NRE, 15CB/15CA may be required. So for transfer of interest, 15CB/15CA would be required for remitting the funds abroad or for transferring the funds to NRE account. Thanks.
Thank you sir you cleared my doubts .
Hello Sir,
I hold both NRO and NRE accounts with the same bank. I recently visited India and had a family get together to welcome my new born son (born in USA). We received a little over Rs. 2 lacs as gifts from family members. I deposited that amount into my NRO account. Is that fund eligible to be transferred to NRE account without tax or TDS?
Thank You!
1. Any gift from relative is tax free. Any gift from non-relative i.e. friends, cousins, etc. would be taxable and needs to be added to the income. Also, a resident may gift to his close relatives (as per FEMA) who is an NRI. i.e. gift from only parents, siblings and children is allowed.
2. By depositing the funds in to your account, it becomes that you have received the gift and not your son. If gift was to your son, he would open an account and deposit the same into his account.
3. If you are claiming to be gift to you, only your parents and siblings can gift to you. Any other persons can not gift to an NRI and the money can not be remitted abroad. Please contact your CA and bank. Thanks.
In case of just transfer of funds from NRO to NRE, only part D of form 15CA to be submitted as it is not chargeable to tax?? Bank is asking for form 15CB as well then Part C of Form 15CA has to be submitted or Part D ? And if both NRO and NRE account is in bank in India then currency will be INR and country to remittance will be India or US if person is residing in US but NRE account in India
1. The source of funds in NRO needs to be checked so if the source is taxable in nature (rent, salary, capital gain, sale of asset, interest, etc.) 15CB and 15CA part C would be required. As the bank do not want to take the responsibility, you would need to provide the same.
2. Yes, the currency would be INR for both and country of remittance would be India as you are remitting money in a bank account located in India. Thanks.
One follow up question on this (and all the rest is very helpful so thank you): The amount in NRO was through my salary over the years, so it was taxable but I have already paid the taxes. Do I still need to select Part C? Its not taxable anymore.
Without 15CB/15CA, bank would not know whether you have paid tax on the salary income or any income generate from savings of salary income. Thanks.
Is transfer of fund from nro sb to nre sb subjected to part D or other part form 15 cb?? Is this transfer chargeable or not chargeable to tax??
It would depend on the source of funds in NRO account. If source is sale of asset or rent or interest, the income would be chargeable and 15CB/15CA would be required. Thanks.
SIR MY CLIENT IS NRI.IS TRANSFER OF FUND FROM NRO TO NRE IS SUBJECTED TO 15CB AND 15CA??ACTUALLY NEITHER RBI IN FEMA NOR INCOME TAX IN ITS NOTIFICATION HAVE MADE IT CLEAR THAT SUCH TRANSFER IS SUBJECTED TO CA CLEARANCE THROUGH 15CA AND 15CB.WOULD YOU PLEASE ENLIGHTEN AS TO WHICH CIRCULAR OR NOTIFICATION HAS CLEARLY MADE SUCH TRANSFER MADE COMPULSORY FILING OF 15CA ,CB ..THANKS
The IT Act Sec 195 and Rule 37BB determines the rules for transfer/payment to an NRI and requirement of 15CB/15CA. I don’t think the same rule is followed by all residents else the 15CB/15CA would have been issued before money is credited in NRO account. Also, before money leaves India, RBI needs to make sure that tax, if any, on the transfer is paid. As transfer of money from NRO to NRE has the same meaning of remitting funds from NRO account to abroad, RBI/Bank insist on the 15CB/15CA for the same. Please consult your CA and the bank to understand the procedures. Thanks.
thank you sir
Dear Mr. Patel,
The source of the funds in my NRO account is “Rental Income(TDS not deducted)” and “Savings & FD Interest”. This amount would be less than Rs 5 lakhs for this financial year. I would like to transfer these funds to my NRE account in this financial year.
1) If I transfer less than Rs 2.5 lakhs, which “Form 15CA Part type” should I use?
2) If I transfer between Rs 2.5 lakhs and Rs 5 lakhs, which “Form 15CA Part type” should I use?
Do I need to submit “Form 15 CB” for both the above scenarios?
Thanks,
Balu
1. As you are an NRI, TDS needs to be deducted on the rent @ 30.9%. Similarly, TDS @ 30.9% will apply on interest from NRO savings and FD account. As long as TDS is deducted, you are allowed to transfer the funds to NRE account. For that, you may use Form 15CA part A.
2. If TDS was not deducted, I would recommend that you obtain a CA certificate in form 15CB and file form 15CA part C to transfer the funds. Thanks.
Sir
One client has sold property is india and received the money in NRO account. Now he wants to repatriate some part of amount to NRE account. Please suggest:
a. Form 15CB requires to be made for original sale transaction or for Repatriation from NRO to NRE?
b. If for repatriation, then the remitter and remittee are same and hence no question of TDS. So in the form, total amount received after TDS on original sale can be mentioned as amount to be transferred and NIL TDS in form 15CB?
c. Since the repatriation is not taxable, in form 15CA, the part D can be filled without any reference to Form 15CB?
1. Yes. As the sale of property results into a capital gain, a taxable transaction.
2. The buyer needs to deduct TDS. You may indicate the same in explanation/ basis for determination of tax liability. For NRO to NRE, you may mention that as TDS properly deducted, no need for additional tax.
3. Form 15CB and Form 15CA part C will be required. Thanks.
Dear Sir,
I am a CA in Mumbai. Recently my client told me that he wants to transfer funds from his NRO a/c to his NRE a/c (Which is obviously in INR). However all the funds in his account are incomes on which taxes have been paid earlier. I would like to know the following things –
1. Whether TDS is deductible on the transfer from NRO to NRE ? If yes, then at what rate?
2. Which part of Form 15CA should i fill ? (The amount is more than Rs. 5 lakhs.)
3. In form 15CA should i write nature of remittance as Transfer from NRO to NRE ?
Thanks in advance.
1. TDS is on income and there is no tax on the transfer. As tax is paid on income, there is no additional tax on transfer between accounts.
2. 15CB and 15CA Part C.
3. Yes you can. However, a purpose code needs to be included as well. Thanks.
Hello Jigar,
Here is my concern. I have read from lot of places that transferring funds from NRO to NRE is possible given correct documents are provided. However, when I visited my CA to get the 15CB form, he had doubts about my procedure.
Here is what I am simply doing-
-Had some money in NRE account
-Transferred to NRO part by part
-Widhrew cash from NRO and gave to relative in need
-Relative returns cash in NRO part by part
-I want to transfer to funds form NRO back to NRE part by part (reverse from above)
-The part by part us spread over some time.
So the source of the funds is originally from NRE account. However, the CA feels that since my withdrawal and deposit mechanism in NRO is cash, I might be subject to questioning and my procedure seems very shady to him.
Please note that I do not earn any kind of interest in giving the borrowing to the relative.
Is there any issues in doing the above? Thanks!
1. I don’t blame your CA. The transaction does look shady. If you wanted to give money to your relative in need, you could have easily given it by cheque or online transfer. There is no need of withdrawing and giving cash.
2. Depositing cash in a bank account is tracked by the Income Tax department and if it is above a threshold, suspicion may arise. Especially if the cash was deposited during denomination period (Nov-Dec 16).
3. Unfortunately, you would need to convince your CA of the genuineness of the transaction and get the CA certificate in form 15CB. You may have to explain the situation, ask your relative to visit your CA and/or give declaration or provide any documentation. Thanks.
Hi Sir, I am buying a property from NRI, TDS deducted at 20%, now the NRI needs to remit the money back to US, after the form 15CB & CA is obtained does the NRI also need PAN card for money remittance from his NRO account.
Yes. PAN is required for remittance. Also, the NRI seller is required to file the tax return and would need PAN for the same. And, without PAN, he may not be able to get the credit for the TDS deducted. I highly recommend to get the PAN first and then do the transaction. It will make your and his life a lot easier. Thanks.
Question for a friend. My friend and her huband have stocks that they bought almost 40 years ago and now in their demat PIS account. They have been living in the USA for over 35 years. Since it is a long term investment I think there is not capital gain. If they sell the stocks can they transfer the money from NRO to NRE and repatriate the same. Do they have to fill form 15CA and CB?
Thanks,
Pema
1. Yes, your friend can transfer the funds from NRO to NRE or repatriate the same to USA.
2. I think form 15CB/15CA would be required as it is a result of sale of shares, resulting into a capital gain subject to income tax. While it is not taxable due to certain conditions (STT paid, LTCG, etc.), only a CA can determine that. As a result a CA certificate in form 15CB and filing of form 15CA would be required. Thanks.
Hello sir, one of my client want transfer money from his nro ac to nre ac under purpose code s0014. Please tell me what part of 15CA to be filled and let me know Form 15CB is required ? Thanks in advance
There is difference between the actual purpose and use of purpose code for simplicity. Please understand the source of funds and reasons for transfer and then accordingly suggest the forms and procedures for transfer. If the source of fund is of taxable nature (salary, interest, rent, business, capital gain, etc.), 15CB/15CA would be required if the amount is more than 5L. Thanks.
Hi Jigar
I had bought an apartment few years back by remitting into my NRE a/c. Now for some urgent family maintenance and child education expenses, I tried to sell my apartment. Since that didn’t work out, I took a loan ag the property to meet some urgent needs. Can I approach the bank to allow me to remit the proceeds to my own a/c abroad. Tks.
Loan amount is not allowed to be remitted abroad. Thanks.
Sir,
Very good article. Thanks for sharing the information. As per the updated Rule 37BB, it appears that for several reasons we can do NRO to NRE transfer without form 15CA and 15CB effective 1st Apr 2016. What is your view on that? Why are banks still insisting on these forms though the income tax department directive is very clear?
http://www.incometaxindia.gov.in/Lists/Press%20Releases/Attachments/424/Press-release-Rule-37BB-17-12-2015.pdf
If you can prove that your nature of transfer and source of fund is included in the specified list, there is no need for 15CB/15CA. However, the key is that the funds is after tax or not taxable. It is very difficult for bank to know whether funds in NRO account is after-tax funds and there is a human tendency in India to declaration to simplify the matter i.e. an NRI is likely to say the amount is not subject to tax, even if it is just to transfer the funds. He/she know that once money is out of country, Indian government will not be able to tax and the NRI is not afraid of any penalty or fine by the Indian government as they can resolve any action by corruption or other means. As the responsibility if of the bank to ensure tax is paid, bank insist on the CA certificate in form 15CB and filing for form 15CA. Thanks.
I have transferred Rs.16 lakhs from my NRE account to a fixed deposit account of a private bank. After 3 months I have withdrawn the money and the same got credited in my NRO account without any interest gains. Now i want to transfer the entire amount back to my account in UAE in dhirhams. What are the procedures should i follow and whether i have to pay any tax for the entire amount. If so how much will be the rate?
If you have kept deposit in NRE account, on cancellation, the money should be credited to your NRE account and not NRO account. If NRE account, you just have to file some forms and money will be remitted to your account in UAE. If bank made a mistake by crediting NRO instead of NRE, you can ask them to first credit NRE and follow the same procedures. If the account is NRO, you would need a CA certificate in form 15CB and filing form 15CA to transfer the funds. Please contact your bank and CA. Thanks.
Hi
I have a basic question related to understanding Taxable vs Non taxable income
Scenario-
1. I am a EU national Who received money from beer as well as end of employment settlement when I left my job in India. When the money was paid to me they ensure that the TDS as deducted.
2. Then I invested this amount in the liquid fun with the daily dividend option which also means that TDS is deducted at every day on the dividend paid out at the rate of 30%
3. No I want to move this money back to EU,, as it out remittance from another account.
Question-
Since the TDS is paid on mutual fund investment at the time of redemption for me the amount is nontaxable as I will be providing tedious certificate.
So when I would like to limit this money outside India from my and our account I believe that I qualify for an RBI regulation where in under section 33 BB I can move back my money as Surplus savings to you account for family maintenance and savings.
which also means that I do not need form 15 CA /CB for repatriating money
While your reasoning appears correct, it is the job of a CA to determine if the tax has been paid or TDS has been deducted as per law. Bank can not determine the same. I think you would need 15CB/15CA for transferring money to EU. Thanks.
Hello
I would like to submit the form 15 CA and my CA will help me with form 15 CB, but can you pl confirm, if DSC (Digital signature certificate) is required for me?
I am bit lost and need a help in this regards.
DSC is not required to submit 15CA. You can submit the form, a copy will be sent to email. Print, sign and send a copy to the bank for the transfer. Thanks.
Sir,
After closing my NRO account got the payment in DD and don’t have any account in India where I can deposit the DD. What are the options here to get the money from Bank.
Thanks,
Yogesh
NRO account can only be credited in NRO account. You would need to open an NRO account and credit the money in the same. You may later decide whether you want to keep in NRO or transfer to NRE or to outside India and would do the procedures for the same. Thanks.
Sir,
one of my NRI client from Australia has sold a land in India. He would be receiving the funds in his NRO account . The buyer does not intend to deduct TDS. My client would pay the self assessed capital gains tax before transferring the amount from his NRO to NRE account. Can you guide me through the process to be followed for executing this transaction.
Regards.
Intention is not enough. It is the law. Your client needs to inform the buyer of his residential status and buyer needs to deduct TDS @ 20.6% and not 1% which is applicable to residents. Please contact us if you need our guidance. Thanks.
Hello Mr. Jigar,
One of my clients, Mr. XYZ is a Non Resident in India and would want to transfer funds from his NRO to NRE Account in India. The bank is asking for Form 15CA & CB for transfer of such funds. The funds in NRO account are accumulation of Redemption of Mutual Funds and Long Term Capital Gains on sale of shares in India both of which are exempted from Tax as per Indian law. The funds in NRE Account are proposed to be retained for few years and would not be repatriated outside India after transfer is effected.
Requesting you to kindly advice on following:
1. Whether such transfer of funds from NRO to NRE account would be deemed to be chargeable to tax as there would be no restrictions on repatriability of funds in NRE Account?
2. Which RBI Code would be required to be mentioned in Form 15CB – Certificate of an Accountant for such transfer?
3. Whether the Part C of Form 15CA would be appropriate for such transfer?
1. Sale of investment is taxable as capital gain. Whether it is taxable or not would depend on certain conditions – LT, equity, etc. So the restriction on repatriability of $1M will apply.
2. It would depend on the purpose of transfer. It may be for family maintenance and savings as well.
3. I think 15CB would be required as well. Thanks.
Dear Jigar,
I have a question if you can help please:
1. I had loaned rs 20 lakh to a relative from my savings account which I am going to close as I am residing in Australia now. He will transfer it back to my NRO account. Can I repatriate that amount to Australia from my NRO account. If not, then what is the process for me to get that amount back to Australia?
Thanks!!!
The money can only go to NRO account and after 15CB/15CA, you may transfer the same to Australia. Please contact your bank and your CA. Thanks.
Dear Mr. Patel
As I am resident in U.K. And having NRO account in India and all the amounts in my NRO Account inherit from my parents a year ago and they already paid the tax for their saving in banks. Now as the amount inherit to me from my parents after their death and I file the tax on interest gained on this inherit saving. And I asked the bank requiring CA CB report. Do I need to pay any TDS on this inherit savings.
And how long will it take to get the approval from RBI.
PLEASE REPLY
There is no tax on the inheritance received. The tax is only on income of the investments made on the inherited amount. TDS would apply based on the nature of income as per income tax. You may also have to file the tax return. If you want to transfer funds from NRO account to NRE account or to UK, 15CB/15CA would be required as only CA can determine the taxability of transaction and whether you have paid tax, if any on the income. No RBI approval is required for the same. I hope this helps. I am not sure if you meant anything else. Please elaborate. Thanks.
Sir – this side is very helpful. I have a few questions. I am an NRI who moved to US from India last year. I have got NRO / NRE opened but now want to transfer money from NRO to NRE.
Question 1
I am transferring my own money from NRO to NRE; I had got the money when I was employed in India – all from Salary and no other source. While selecting the kind of form 15CA, I should chose Part D right ?
Question 2
For the remitter, Remitte – should I enter my own addresses ? one for India and the other for US ? or something else?
Question 3
Nature of remittance? This is for my personal use – so what should I fill in here? Is repatriation of surplus funds correct?
Question 4
Relevant purpose code as per RBI ? What should that be ?
Any clarity on this will be super helpful
I would think 15CB and Part C of form 15CA would be required. The remitter and remittee may be the same person. The purpose code may be the family maintenance and savings. Please contact your CA and your bank. Thanks.
Dear sir,
I am an NRE, resinding in UAE, for the investment purpose i would like to transfer 20 lakh Indian Rupees to UAE. i have an NRE & NRO account with Vijaya Bank, but my fund is in NRO FD, i want to transfer this 20 lakh to my NRE account, my question is How much tax i have to pay for the 20 lakh Rupees transfer to my NRE account ?
There is no tax on transfer of funds from NRO to NRE. The tax is on income i.e. interest on NRO FDs. If you have paid the tax on NRO FD interest, you may transfer the funds to NRE or directly to UAE. Please contact your bank and CA to understand and complete the procedures. Thanks.
My client has given loan from his nre account to other bank resident account. Now he got the loan amount back to NRO.Can he transfer funds from NRO to nre account.
Only loan given on repatriable basis can be credited to NRE account. However, certain conditions relating to person, amount, interest, term, etc. need to be complied. If not, the money would be credited to the NRO account. Thanks.
Dear Mr Patel,
I am an NRI, going to sell my property with a sale amount of 2 crores.
I bought the property 10 years before. The cost inflation index calculation now is 22 Lakhs. I have booked an apartment in India which cost 1.25 crores which will be handed over at the end of 2019.
Please let me know:-
1. How much TDS the buyer needs to pay – 20% or more? Is it for capital gain or for the whole sale amount?
2. When can I claim back the whole TDS amount? after the apartment is handed over or when I file my income tax return in 2018?
3. Does the furnishing amount also will be considered as property investment?
4.Could I repatriate the amount after paying 20% tax?
Would be grateful for your reply.
Regards,
M Varghese
1. The long term capital gains tax rate is 20%+ cess i.e. 20.6%. So the buyer will deduct that much. If you have proof that your gain is less, you may contact your IT officer (Assessing Officer) and get lower deduction certificate. The TDS would be deducted as per the certificate.
2. Yes, if the TDS is deducted more, you may claim the refund.
3. Do not understand the question. Please elaborate.
4. Yes, you are allowed to remit the funds out of India. Please contact your bank and CA. You may also contact us if you need our help in transferring the funds. Thanks.
Dear Sir,
A person gave advance of Rs. 20 Lakhs for a investment in residential plot through cheque from NRO account in 2014-15 but since the land did not get NA certificate and as such same amount got returned in NRO account during 2017-18 and purchased shop from that amount.
Whether 15CA 15CB required in this case.
Regards,
Bhavik Joshi
There is no 15CB/15CA for buying shop. 15CB/15CA is only when an NRI is transferring money from NRO account to his NRE account or remitting money outside India. Thanks.
Hi,
I accidently transfered money (Rs. 45lacs) from my NRE saving account to my NRO savings account. I was in the middle of opening a NRE PIS account to buy stocks. I just realised that i wont to able to transfer funds from my NRO savings accounts to my NRE PIS account to buy stocks as it only takes funds transfer from NRE savings account. Need advise on how i can transfer my money back to my NRE savings account from my NRO savings account. I am a US citizen currently in India. Thanks
I would suggest you to contact your bank and explain the situation and check if they would allow to transfer the funds from NRO to NRE without 15CB/15CA. If not, you would need to follow the procedures and may have to provide 15CB/15CA. Thanks.
Dear Mr. Patel
I recently came across your blog and thought to discuss with you my specific situation and possible assistance.
I resigned from my Indian job and permanently moved to Canada in 2005. Upon my resignation, my company issued me account payee cheques of approximately 15 lacs towards my comapny Provident Fund & Gratuity. I invested this money in Term Deposits in SBI. In 2009, I adopted Canadian citizenship and during my subsequent visit to India I transferred these funds into NRO account in SBI.
Now I have recently opened NRE account and want to transfer my NRO funds into NRE account. I still have documents showing the issuance of Gratuity and Company Provident Fund but I didn’t keep the transaction record of 2005 investments. I’m trying to get help from SBI to get this old transaction record of 2005 to prove the source of fund. But if I can’t get help from SBI, then whether it”s still possible to transfer the fund from NRO to NRE account.
After the deposit of Provident Fund & Gratuity amount to my SBI account in 2005, there was a very small addition of funds in 2006 which was again by my former Indian company towards 2005-2006 interest payment for my PF account. After this there has been no further addition of funds to my SBI account. Is this not enough to prove that the source of fund was Provident Fund & Gratuity and so it’s non-taxable despite the absence of 2005 transaction record?
I will greatly appreciate your kind advice in this regard. Also I would like to know whether you would provide assistance for this transfer.
MOHAMMED SALIM
As long as you have paid tax, if any and if applicable, on the amount, you are allowed to transfer the funds to NRE account. I think proof of filing return on your last year in India would be enough. Also, the bank would have deducted TDS on the NRO deposits so you are okay for that too. Thanks.
Hi,
Thanks a lot for the valuable information.
I have few query.
We (My family) are NRI and have NRE & NRO account in India.
I have property in India, which I bought through NRE account paying 1 Cr.
My wife has received one inherited property in 2011 and in
2014 her parents passed away. Her parents inherited this property from her deceased Grandparents.
Now I am looking for some funds (2.0 Cr) to be repatriated to Kuwait.
My question is
1-Can I sell my property to an NRI and receive the fund to my NRE account.
2.If not, if I sell my property to an Indian for 2.0 Cr and get the funds to NRO account,what tax I have to pay and what procedure I have to follow to transfer the 2.0 Cr to NRE account.
3. If we want to sell my wife’s inherited property and get the funds to NRO account, what tax we have to pay and what procedure we have to follow to transfer the fund to NRE account.
4. If I don’t get a buyer, can I pledge my property in bank for loan and transfer the loan amount to NRE.
Thanks a million and really appreciate your service.
1. Any property given during lifetime is a gift and after death is inheritance. I am not sure how your wife received inheritance before death of her parents. Please
2. As transfer from NRE to NRE is technically outside India, I would not recommend. However, if the buyer deduct TDS at applicable rate (not 1% but 20%+surcharge+cess), and 15CB/15CA is prepared, it may be okay. However, I would recommend crediting the money in the NRO and then transfer to NRE.
3. Loan amount is not allowed to be remitted abroad. Thanks.
I am from Ahmedabad and residing in USA from the last fifty year. I need your help in the following matter:
I have an NRO and NRE accounts with HSBC at C. G. Road, Ahmendabad. I have less than Rs. 40,000 (forty thousand rupees) in NRO account. I submitted form 15CA to HSBC for wire transfering the money to USA Bank. But the HSBC insists to submit 15CB.
Is it necessary to submit form 15CB? I would very grateful to you if you can answer this question.
15CB is required for a taxable transaction. 40,000 in your bank may be taxable so bank usually insists on the CA certificate in form 15CB. If you can’t convince the bank that 15CB is not required, you will have to provide 15CB. If you don’t want to do it, you may withdraw and spend/use the funds in the NRO for personal purposed during your next India visit. Thanks.
hi
I have a question.
My wife holds an NRI account and I have an NRO account.
If she transfers funds from her NRI account to my NRO account, do I have to pay taxes on capital gains?
If I make an FD of that amount, do I pay tax on interest earned?
Also, can I transfer back the same amount back to my wife’s NRI account in future
without any complications?
thanks a lot.
1. There is no NRI account. It is either NRE or NRO.
2. In India, husband and wife are two different person and are taxed separately. Any transfer between spouse is disregarded and income generated from the gift of spouse is added to the income of donor, i.e. it would be considered as your wife’s income.
3. To avoid any complications, I would advise against transferring funds from husband to wife or vice versa. Invest in her name. Thanks.
Hello Jigar,
I have mistakenly remitted my savings from salary in NRO account instead of NRE. It is Non-taxable in India. To transfer these funds to NRE account, I have been asked to fill Form 15 CA Part D by my bank. Could you please guide me what to fill under ”
Nature of remittance
Please furnish the relevant purpose code as per RBI
Thanks a lot in advance for your advise.
Regards,
Gaurav
Nature of remittance and Purpose code would be the same as you would declare in form A2. I think it would be nature not taxable – other or NRO to NRE transfer of own funds. However, I would request to confirm with the bank. Thanks.
Dear Mr Patel,
Thanks for your blog. It is very useful and informative.
Please let me know how the revenue calculate the date of reinvestment of capital gain in an ongoing apartment project –
Is it the date of agreement to sell the undivided land for construction?
OR the date of agreement to construct?
OR the date of the allotment of the apartment?
Also will the cost of furnishing the apartment be considered as capital gain investment?
Many thanks
M Varghese
I think it is the date when you made the payment and date when you register the property in your name. Registration proves transfer of ownership. If you are constructing, the building needs to be completed within 3 years from date of sale. If buying, the purchase needs to be completed within 2 years from the date of sale of old property on which you are trying to save the capital gains tax. Thanks.
Dear Sir,
I have both NRE and NRO account and its a joint account for me and my wife.
I have property in Chennai which i bought through NRE home loan from HDFC bank..
From my deceased mother i received amount of 15 lakhs.
Now i want to use this amount for repayment of home loan.
Please clarify.
what document are needed and what is the procedure .
As the loan is NRE, you may not be directly payoff the loan from the funds received from inheritance. The money received from your mother can only be credited into NRO account. Once in NRO, you may transfer the funds to NRE account after CA certificate in form 15CB and filing of form 15CA. Once the money is in NRE, you may use the same to you payoff your loan. Thanks.
Excellent blog.You are doing a great service to clear doubts about NRI taxation.The best thing is that the questions are the engine through which the subject becomes clear.
My doubt is NRI transfers land and invests in AY 2017-18 in NRO account.Now he transfers it in AY 18-19.The TDS on NRO interest is duly deducted by the branch and NRO paid the Capital gains tax also.
1 Whether only interest TDS to be mentioned in Form 15CB
2 What would be the RBI Code and nature of remittance.One there is interest on deposit for which TDS is deducted.Two There is sale of land for which tax has been paid.
What would be the RBI Code for Interest plus Principal repatriation.Is this enough or land sale to be mentioned .But there is no option to provide 2 codes.and also land sale took place last year not this year
The transfer would be NRO to NRE transfer and won’t be taxable. The transfer out of NRO on sale of assets and interest after payment of tax is allowed. You may only enter one code. Your CA would know which code to use. You may also confirm with the bank. Thanks.
Hi Mr.Jigar Patel,
I have a question about above subject.
The house site originally purchased by us(NRI and later OCIs) .Now a developer is asking to give the site under JDA(Joint development agreement) who will share some number of flats to us(owners).
We believe that it is allowed by FEMA and IT.
Can you kindly advise on this?
Many Thanks,
Rag
As long as the land is a non-agricultural land and you are not involved in the trading but developing activity I think it is allowed. However, I would suggest you to contact your CA and have him review the terms of the JDA. Thanks.
I am an NRI residing in africa on employment since 2003 till date. From 2004 onwards I use to visit India once in a year on holidays for 30 days . In 2013 mid I lost my first 2 passport in africa which were kept together as my laptop bag was stolen and both the passports were inside the laptop bag. Out of 2 passports one was expired and cancelled while the other one was still valid. Now I do not have details of Dates of of Arrival or departure in India.
As from Next year onwards I am going to work from India in the same company
but will travel every alternate month due to this i might become NOT ORDINARY RESIDENT ( as per income tax act)
so Now as per income tax act onus to prove that I am a NOT ORDINARY RESIDENT lies on me and for that i would need passport as evidence of dates of arrival and departure from india and As i have lost my passport i am not able to present that as evidence.
can u please advise is there any way out in above circumstance to prove myself as Not ordinary and to get non india income exempt. I did tried and written many emails to immigration bureau but i dont get any reply from them.
will appreciate if i get some way out to prove my self NOT ORDINARY RESIDENT
regards
samir
1. I would assume you have a valid passport since 2013.
2. As for considering residential status, preceding 7 years of stay is to be considered i.e. 2011-2012 to 2017-2018, only 2 years of data is in question. Please check if you have photocopies of your old passports. If you have tickets with you or your company, it will also help to establish the actual dates.
3. I think it would be only for 2 years as you would be Ordinary resident from 2020-2021.
4. The only difference is that your foreign income would not be taxed in India. However, if you are physically present in India and working for a company, the salary income would accrue in India and would be taxable in India. The residential status would be important only if you have any other major income outside India other than salary. Do you have any? Thanks.
Dear Sir,
I am an NRI (UK Citizen with OCI). I have NRE and NRO accounts. I am selling a property in India and expecting an amount of 50 lakh rupees in the month of March 2018. I have few queries.
1) Do I need to pay Capital gain tax in India (I boutht this property in 2003 with my NRI loan).
2) Do I need to pay capital gain tax for same in UK also?
3) And how do i get this money transferred to my NRE account?
Thanks
Sesha
1. You would pay the tax only if the sale of property results into capital gain.
2. The buyer will deduct the TDS before making payment to you so you don’t have to pay from UK. The buyer will pay the tax on your behalf to the income tax department and will give you the TDS certificate. Please note that TDS @ 1% is for resident seller and as an NRI, in your case, TDS @ 20.6% will apply.
3. Once TDS is deducted and money is in your NRO account, you would have your CA issue a CA certificate in form 15CB and you would file form 15CA and provide documents / information to the bank’s satisfaction for transferring funds into NRE account. Thanks.
sir we have a client who is a non resident. He sold his house property in India on 01/03/2018 which he bought in 2005. The client wants to transfer his sale proceeds amount from India to US.Does he need to file 15CA and 15CB? and what is self remittance 15CA and 15CB
As the sale of property may result in a capital gain i.e. income chargeable to tax in India, 15CB/15CA would be required. As the client will be remitting from his NRO to US, the remitter and remittee would be the same person. Thanks.
Hello Sir,
I had booked a flat in Hyderabad in 2014 for a sum of 87 Lakh which was duly paid over the course of 4 years to the builder. Last year the flat was ready but I wanted to sell it off. I found a buyer and sold it for 54L and got the flat registered on the buyer’s name. Please note that I only have a Agreement of Sale with Builder and no Sale Deed issued on my name. Also note that there are no capital gains for this as I sold it for a loss.
The funds are sitting in my NRO account and I want to transfer to my US Bank. Reading through 15CA, I should be filling Part D as there is nothing registered and no gain made through this transaction. If that is correct, what should I put for “Nature of remittance” and “relevant purpose code” ?
Only a Chartered Accountant is authorized to determine if the sale resulted in a gain or loss. As the source of money in NRO is as a result of sale of property, that could result into an income chargeable to tax, a CA certificate in form 15CB and filing of form 15CA would be required. The bank would not take any responsibility of tax compliance. Please contact your CA. I would also recommend to file the tax return for the year inwhich property was sold to avoid any future complications. Thanks.
Dear Sir,
Is it compulsory to issue Form 15CA along with Form 15CB.If we not required Form 15CA. As we want to issue Form 15CB for taking the benefit of DTAA. Please aid.
If 15CB is issued, it needs to be accompanies with 15CA part C. If you are taking the benefit of DTAA, you would need to issue 15CB and also need to file form 15CA part C. Thanks.
Hello Mr. Patel
Many thanks for the blog it’s really helpful and gives great insights.
I would like to clarify couple of doubts regarding my situation
i) In Year 2014 Money transferred from foreign account to India savings account and invested into Fixed deposits.
ii) The interest earned on fixed deposits is subjected to TDS by the bank.
iii) Now i want to open a NRE account and move funds from this saving (which will become NRO when i open NRE)
iv) Will i need to submit for 15CB/CA to the back or will this transaction qualify for S1301- Remittance by non-residents towards family maintenance and-savings
15CB/15CA would be required as the income generated since 2014 in FD is taxable. If TDS is properly deducted and income tax return is properly filed for last 4 years, you would not have to pay the tax again. But, whether proper tax is paid or not, a CA certificate would be required. Thanks.
I need to consult an expert like you. Can you suggest and provide contact information of an accountant in Hyderabad, Telangana with expertise in U.S. taxation laws?
Thank you.
Unfortunately, we do not know anyone in Hyderabad. However, you may contact us as we do have clients from Hyderabad. Thanks.
dear sir,
im a Ugandan citizen with a oci card.
i have been investing in chit funds thru my nre account, all the installments of the chit funds were transferred to the chit fund company from my nre account, now the chit has mature and the funds have not come to my nro account in the same bank as i hold a nre and nro account in the same bank, my question is
can i transfer this mature chit fund amount back to my nre account ?
Investment in chitfund can only be on a non-repatriable basis so the money can only be credited to the NRO account. As an NRI, I would not recommend investing in a chit fund. Please contact your CA for the 15CB certificate as you may remit the funds after payment of taxes. Thanks.
Dear Mr Patel,
I’m a NRI and have recently sold property with no gain, I obtained Nil Tax deduction certificate (u/s 197 certificate) from Income Tax.
Sale proceeds were deposited into NRO bank account.
Now I want to transfer that fund into my NRE bank account.
So do I need form 15CB from my CA OR I can just fill Form 15 CA (Part b) and give same to my Bank?
Thanks in advance.
As you already have obtained nil deduction certificate from ITO, you would only file form 15CA part B. Thanks.
Hi,
I am NRI, bought underconstruction apartment yet to be built in 2014. Over period sale agreement was made and possession and registration is due 2 months. Bought at 82.6 lacs and now its sold for 1 crores. What are the taxes i am due? Is it LTCG 20% or sale on total value 20% . If it both i will be at aloss considering nothing that i can repatriate.
The tax is on gain and not sale amount. Also as you have been paying installments over last 4 years, you would get an indexation benefit and may not have to pay tax at all as after indexation, the sale of property may result in a capital loss. Thanks.
Dear Sir
My client Mr. X is NRI propose to transfer from NRO to NRE account Security Deposit refundable amount Rs. 14.5 Lakhs . For this transaction 15 cb is applicable and in 15 CB which column the amount as bee showed .
You would enter 14.5 L as Indian currency (INR) and convert the same to USD or any other currency for amount in foreign currency. Thanks.
Dear Mr. Jigar,
I want to transfer money from my NRO to NRE account. I have already spoken to my Accountant for the 15 CB form.
While filling the 15 CA form, the remittee and remitter Pan card, Name etc. are same since both the NRE and NRO accounts are in my name.
Just wanted to confirm if that is ok.
Thank you
Yes, it is okay. Also, if your CA has filed the form 15CB, the information will populate automatically. Thanks.
Hello Sir,
I want to transfer funds from my NRO to NRE account. Do I have to pay any tax?
i) Source of funds is my Singapore salary
ii) My salary was credited to HSBC account.
iii) I transferred most of the savings in my HSBC account into my SBI NRE account.
iv) When I moved to India in Jun 2015, my SBI NRE account got auto-converted to Resident account.
v) Meanwhile I transferred about INR 1.32 cr from DBS Singapore to HDFC Bank (resident account) . This was then booked into FDs (for 1 year).
vi) Finally, I moved abroad. The money deposited in SBI account was finally transferred to HDFC account in Dec 2017. And i closed SBI account. Now HDFC itself has all the savings of about 2cr. Note that HDFC changed the status of my resident account to NRO in Dec 2017.
vi) I have recently also opened a NRE account in HDFC where I wish to transfer my NRO savings.
Yes, you can transfer the funds to NRE account. I would assume that you have been filing income tax return and have been reporting the income and paying taxes regularly. There is no tax on transfer of funds from NRO to NRE as the money in NRO is after tax paid money. Please contact your CA or us if you want to transfer the funds as a CA certificate in form 15CB would be required. Thanks.
Dear Sir
I had gifted around 20 lacs to my parents over time. Now I am NRI. Can take that money as gift from my parents as gift into my NRO ac as a help to buy some property? Will it require my parents to fill 15CA/15CB forms etc.
Thanks
1. Giving money to parents with an intention to take it back in future is not a gift but a loan.
2. Ignoring this, parents are allowed to gift money to NRI son. I would recommend transferring gift money directly from their savings account to your foreign account under LRS. There is no need for 15CB/15CA. Thanks.
Hi
I’ve gone through all of your posts here and I must tell U they are extremely helpful. I have recently received my Canadian PR and would be moving soon. I have around 35 Laks savings wid me out of which, I would be carrying about 10 lakhs. Rest, I’m planning to invest in NRE fixed deposit for a long period. For that purpose, I’ve opened a combination of NRO+NRE account with HDFC bank as they do allow it prior to departure. I would be transferring the funds from SBI savings account to HDFC NRO and from there to NRE account. All my saving is tax paid and accounted for. What documents/certificate do I need to produce and what are the charges I would have to pay if any. Also, let me know if I’m on the wrong path or missing something.
Your help in this matter would be greatly appreciated.
Thanks in advance
1. Technically, you are not an NRI unless you leave India. Having PR does not mean that you plan to live outside India. There are many people having foreign citizenship and permanent residency are living in India. They are residents and can only have a resident savings account. They are not considered as NRIs and can not have NRO/NRE account. I doubt if the HDFC bank allows you to open the account while in India, unless you make a declaration that you are an NRI living out of India having a PR and currently visiting India. I would recommend opening the account only after you have moved out of India.
2. Anyway, You would need a CA certificate in form 15CB and also file form 15CA for transferring the funds from NRO to NRE. Thanks.
Dear Mr. Jigar,
Thanks for this informative blog. I have below question:
I am US resident for tax purposes and I own a flat in India. If I gift that flat to my father via a gift deed , are there any reporting requirements in US while filing taxes? (Flat value is about 50-60K USD).
Also, can he sell that in future and send me money as a gift? (after paying due taxes in India)
Thanks.
1.As you are gifting the property, you may want to report this as gift to IRS with the fair market value amount. If you do not report as a part of your lifetime gift lmit, you may have to pay gift tax.
2. If you plan to receive the funds back as re-gift, I would recommend not to do such transaction. You would have to pay stamp duty on the property amount for gift and it is not worth all the hassles. Also, gifting property to receive the amount as gift is not technically a gift. I would recommend not to complicate the matter but to keep it simple and clean. Thanks.
Hi Jigar,
It appear that your blog has been very helpful to many. I am straggler who has been trying to repatriate his money from ICICI Bank for over 6 months and still unsuccessful.
I live in Canada and recently transferred a property (from builder to a buyer, no registry was done). My NRO account received that money. I have provided bank 15CA and 15CB back in January 2018. They delayed the whole process for some other requirements (never ending). They are not looking at it again after the escalation.
I also transferred some money to India with the intent to buy a land and establish a business but later decided to so the amount transferred from NRE account to NRO still sits in NRO, and bank won’t allow repatriate it without 15CA and 15CB, that too issued and signed by a CA.
PS: I have already paid Rs 25,000 to CA producing 15CA and 15CB. Bank has delayed the overall process and is now asking for a refresh of 15CA and 15CB in order to transfer a lesser amount that I originally requested.
My questions:
1. Do I need to have a Chartered account issue and sign 15CA and 15CB?
2. Do I need 15CA and 15CB for repatriating the money that was originally transferred from Canadian account, then transferred to NRO?
3. Do I pay still have pay capital gain in India while I have reported and paid due taxes in Canada on capital gain (from a property sale)?
4. Do I have to pay “service tax” deducted by buyer at the time of sale? The buyer whom I sold the property in 2016, has been asking for Rs 50,000 that he claims to receive as service tax and pay to the IT.
I am in general very frustrated with the amount of documents that are required for repatriation of my own money where bank has all the records (ICICI to ICICI bank transfer – proceeding from a flat sale).
Adarsh
1. If TDS has been deducted from the payment, you are allowed to transfer the funds. As sale of property is a taxable transaction and as CAs are authorized to consider the tax treatment, a CA certificate is required.
2. Yes as the bank does not know whether you earned any money and paid tax on the same.
3. As the property is in India, your primary liability of paying tax is in India. You can claim the tax paid in India as credit in Canada but you first need to pay tax in India.
4. There is no service tax but TDS. Please check with your CA.
5. If you have paid tax and have the documents registered, you do not have to worry.
I think you booked an apartment but not registered but then found a buyer and then registered the property in his name directly and received payment from buyer. If you had cancelled the property and builder found a buyer, it would be easier as you could show this as a refund of money. It pays a lot if the transaction is properly understood and planned. Thanks.
One of my relative (resident of UK) had a house property in India and they sold this property should they pay capital gain while transferring money from NRO to NRE account?
There is no tax on transfer of funds from NRO to NRE. The tax is only on sale of property. If TDS has been property deducted or advance tax has been filed or tax return is filed after paying proper tax, there is no additional tax to be paid. Thanks.
Hi
I have a basic question about repatriation from NRO to NRE or an offshore account.
I had paid money to a builder for purchase of property. Now I have cencelled the agreement and I am getting all my money back which I paid.
So how do I repatriate.?
DO I need to fill form 15CB/frm 15CA ?
What is the role of Chartered Accountant here, in getting my own money back to NRE account for which I have already paid taxes
Thanks for your help!
If you have paid the purchase price from NRE or from inward remittance, any refund on cancellation can be directly credited to the NRE account. There is no requirement for 15CB/15CA. However, if the money is credited to NRO account, while you can try to convince the bank to transfer without 15CB/15CA, the bank may ask for 15CB/15CA. Thanks.
Hello,
Could you clarify something for me? I am an NRI and I want to transfer money from my NRO account to mt NRE account both in ICICI.
So in form 15CB, what should be entered under ‘Country to which remittance is made’ – should this be entered as ‘India’?
If so, what currency should be mentioned under ‘Amount payable:In foreign currency’? Can I enter INR amount in this field?
I have noticed that in your response to a similiar question in 2015/2016, you said:
‘The country of remittance is India so the foreign currency would also be INR. So you would mention both local and foreign currency as INR and write the same amount.’ But in May 2018, you said:
Dear Sir, My client Mr. X is NRI propose to transfer from NRO to NRE account Security Deposit refundable amount Rs. 14.5 Lakhs.
Reply
Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:
May 2, 2018 at 12:19 am
You would enter 14.5 L as Indian currency (INR) and convert the same to USD or any other currency for amount in foreign currency. Thanks.
So have the rules changed, and does the amount to be transferred from NRO to NRE (in India) have to converted to foreign currency on Form 15CB?
Thanks for your answer,
Ruchi
1. Yes, you can have India as country of remittance.
2. As the limit is in USD equivalent, better to convert in USA and then report as foreign currency. Thanks.
My mother passed away in 1998 and she did not told me and my brothers (2) that she had some equity shares in Indian companies. However her Brother who was holding for her told us three and gave us. After a lengthy process of establishing, through court, that we three are the legal children of her the shares are now each of three demat accounts and in final stages to sell and the proceeds from NRO account to NRE account so that it can be legally transferred to USA. What are the forms required for my bank to fill out to submit to CA. Can you recommend a CA in Vadodra or can youhelp me, if so where is your office.
1. For 15CB/15CA, you would only need to show the proof of purchase, inheritance and sell. I would also recommend to file your tax return showing the sale of shares and capital gain, if any. While I don’t think you would have to pay tax, it is recommended to file the tax return.
2. We do not know or take responsibility of any other CA than us. We are based in Ahmedabad and will be happy to help. Our office details are in “Contact Us” Page. Thanks.
Dear sir,
One of My client sale indian property and receive 60 lakh in NRO A/c.
But he want to transfer this money from NRO to NRE A/c and bank required 15 CA and CB Form. But we are confused in selecting options in 15 CB and CA form.
Please guide us.
If TDS is deducted u/s. 195, he would be able to transfer the funds. It would depend on the nature of transfer. Usually, it is sale of property, long term capital gain or if transferring money with other past savings, it could be out of savings/other income. You may also contact bank to understand and agree on selecting the options. Thanks.
one of my client is NRI and got the salary in NRO a/c and now he wants to transfer the fund to NRE a/c. what will be purpose code as per RBI to be filled in 15CB certificate?
I think it would be related to primary income / current income and/or out of savings. However, the question is if he is an NRI, why is he getting salary in NRO and not in an account in a country where he lives and work? Your client’s correct residential status needs to be checked, whether he client is a resident or an NRI. Thanks.
Subject: TRANSFER FROM NRO TO NRE ACCOUNT-CURRENT INCOME
Dear Sir,
I am NRI and having NRO and NRE Saving bank accounts and FDS with SBI in India. I want to transfer net interest income from NRO FDS after TDS to my NRE Saving Bank account in the same branch of SBI.
I am a regular income taxpayer and file a regular tax return in India. All funds available in my saving bank and bank FDs are tax paid and or provided for.
I would like to have clarity particularly on the following points:-
1. Can I transfer my net current interest income from NRO Bank FDS after TDS to my NRE account with the same Bank?
2. What procedure I should follow for this. In such cases are the certificates 15CA and/or 15CB required.?
I shall be highly thankful to have guidance from you on this
1. Yes
2. Yes, as the nature of money that you transfer is interest, which is subject to tax, 15CB/15CA would be required. Thanks.
Hi, I recently sold a property In India for 51Lacs. TDS deducted was approx 11lacs at 22.5 %. As per my CA I have to put 3 Lacs in capital gains account before filing return, my question is I have the balance amount in NRO account, can I transfer the balance 37 Lacs in NRE account ? Do I need the Forms 15BC/CB As mentioned in the posts above ? Do I still no pay any tax ?
Yes, you can transfer the balance amount to NRE. Please contact your CA, who will issue a CA certificate in form 15CB and after filing 15CA and completing procedures with bank, you will be able to transfer the funds from NRO to NRE account. As TDS is deducted, you do not need to pay any additional tax. Thanks.
I am an NRI. Migrated to Australia on 2019. I invested in Equity Mutual fund since 2013 and not invested in MF after migration. Redeemed MF and got money in NRO account.
1) Is it only way to transfer money from Bank to Bank not Via money transfer company approved by RBI? The reason is Bank is exchange rate is (doller rate is higher and charges also higher)
Yes, you need to transfer funds via banking channels. There will always be different between rate at which you transfer to India and rate at which you transfer out of India. However, you can talk to bank and get better rate for your benefit. Also, as the money is in NRO account, you may also need to provide CA certificate in form 15CB and file form 15CA. Thanks.
A NRI has sold property in India and received sale proceeds in NRO A/c.
Now want to transfer these funds to abroad.
1. What will be the RBI purpose code to be used in 15 CB ?
2. Buyer has deducted. Whether TDS amount to be mentioned in 15 CB as there is no reference of buyer as funds are being transferred from own NRO a/c to foreign
3. Whether it is to be mentioned as taxable or not. There is net Long term capital loss.
1. It could be either related to sale of property or transfer out of savings. It may depend on when whether you are transferring only proceeds or also your other savings/ amount in NRO. Sometimes, bank also require certain purpose code.
2. If buyer has deducted TDS, there is no need to deduct additional tax.
3. I would just indicate that the funds are being transferred from my one account to another out of my savings and not include the TDS/tax part. Sometimes bank disagree. But how your CA responds would be the key so please check with your CA and bank. Thanks.
Dear sir
I have finalised deal with a NRI for purchase of his flat in Delhi. I have to make payment for purchase through Demand Draft after deducting NRI TDS. He has a NRO account with ICICI in India. The NRI seller is asking me to provide form 15CA, CB etc. Please confirm if I have to provide the same or the NRI has to get it himself.
Request your early reply…
Thanks & Regards
Sonal
Technically, a person who is making a payment to an NRI is required to provide 15CB and 15CA. However, practically, the buyer makes a payment that is credited in seller’s NRO account and then the NRI seller transfers the proceeds with his/her other savings in the NRO account to NRE. So, the seller does the 15CB/15CA. In your case, it appears that the buyer may not have other money to transfer and would like you to provide the same. Please contact your CA. Also, make sure that the rate of TDS is including surcharge and cess for the value of transaction. Thanks.
Your information is very useful. Thank you. My question is:
I am a long time NRI & have NRO and NRE savings accounts in India. Funds in my NRO savings account is the accumulated savings of many years, consisting of interest income from bank FDs and house rent income in India which I have declared in all my tax returns. The FDs in my NRO account have matured and I want to move the funds to my NRE account and open FDs there, to save tax on interest income. This is not a remittance but a transfer of money from my own NRO to NRE accounts. Do I need to fill part D of Form 15 CA? In the 33 items listed in Rule 37BB there is no mention of this nature of funds transfer, as option to tick. How do I proceed? Thank you.
1. NRO to NRE is also considered as a remittance as once money in NRE account, there is no limit or restrictions on remitting out of India. So transferring funds from NRO to NRE to be done as if it is being remitted out of India.
2. You would need CA certificate in form 15CB and also file form 15CA PartC for transferring funds from NRO to NRE. Once funds in NRE, you would not need any other certificate for remitting funds abroad. Thanks.
Ref your reply to Mr Sanjay. If taxes have been paid, the money in NRO a/c should be considered NOT CHAGEABLE TO TAX. But it appears ‘chargeable to tax’ has a different meaning. If money is tax paid can we submit form 15CA part D? Proof can be copy of ITR submitted. Please correct me if I am wrong. Thanks.
Only CAs are authorized to make a declaration whether taxes have been paid or not. An account holder is no allowed. Else, just to transfer funds, everyone would say tax has been paid. As all credits to NRO may not be after tax, CA certificate is required for ensuring compliance. RBI has asked banks to remit funds only on verifying proper tax payment. As banks doesn’t want to take any responsibility for tax compliance, they would not want to take a risk of remitting money without CA certificate so would insist for the same. So, practically, you would need a form 15CB/15CA for remitting funds out of NRO account. If you have the documents, just show them to your CA who will issue the certificate immediately. Thanks.
Hi,
I am an NRI
I have booked property however the deal cancelled after my payments through my NRE account
Now builder is issuing me a cheque for refund which i can deposit in my NRO account
Can I transfer funds back to my NRE account from NRO account?
Thanks
Please credit the cheques directly to the NRE account. You may submit a copy of account and a letter by builder that he is refunding the payment received from NRE account. If the money is deposited in the NRO account, the bank may ask for a CA certificate for transferring funds from NRO to NRE account. Thanks.
Hello Jigar
I am thinking of selling a property in India.
Realistically how long does it take to get 15CB/CA form filled and transferring funds from NRO to NRE.
Regards
If the TDS compliance is properly completed, you would be able to remit the funds in about a week assuming bank would not take much time in its review. If we have all the documents and information, we have issued the certificate and filed the forms in 1-2 days.However, 1 week is more than enough for the formalities. Thanks.
Thank you Jigar! Appreciate your kind reply. Regards
Hello Jigar,
I had taken LIC policy as a NRI in India, always paid premium via NRE account. However, on maturity LIC said they are unable to payback surrendering amount in NRE account. On my request they accepted NRE account details but was rejected by RBI.
Could you please advise in regards to above rules/regulations.
Kindest regards
Credit into NRE account is limited and the proceeds from insurance may not be credited to the NRE account depending on the policy information. If RBI rejected the request, it may not be credited to NRE account but only in the NRO account. You would need 15CB/15CA for transferring money from NRO to NRE account. Please consult your CA. Thanks.
Thank you Jigar
Really appreciate your kind response
Kind regards
Which part shall we have to filed
When a CA certificate is issued in form 15CB, only part C of the form 15CA needs to be filed. Thanks.
Dear Sir,
I recently moved to Australia about 3 months ago and I have received my EPF savings for about 6.5 lakhs into my HDFC account from my last company I worked in India. I wanted to check which Part do I need to file in income tax portal for 15 CA document (PART A,B,C or D) and also wanted to know if I will be charged tax on this amount ? Can you please help me out sir.
Also, for proof of funds what document do I need to show for EPF ?
1. The taxation of EPF depend on certain conditions. If you fulfil those conditions, it would be exempt from tax in India. However, your CA would be able to guide you for that.
2. EPF can be considered as a taxable payment, so bank would not remit the funds without 15CB/15CA. If you are required to obtain a CA certificate in form 15CB, you would need to file Form 15CA part C. Thanks.
Sir
when 15CB is issued by CA for a remittance from NRO to NRE arising out of the property deal and where TDS has been deducted by buyer on NRI u/sec 195 ,what is the nature of remittance to be mentioned in sl No 6 of 15cb and what is the purpose code to be mention in sl no 7 of 15 cb.There is a long term loss in this case and assesseee is a NRI is entitled to refund his TDS in full
Regards
The purpose could be transfer of immovable property – Capital receipt or out of family maintenance and savings, if you are remitting after some time combined with other income or only part. Please contact your CA. Thanks.
For a US based NRI, if he rents an apartment in India and get the rent deposited in NRO account (ICICI Bank), does he still need the 15CA form to be filled out? Or it’ll be only needed when transfer to NRE or remit some other way out of country? Technically, money is still in Indian Rupee account and not remitted out.
15CB/15CA would be required when the money is transferred from NRO to NRE account. I would assume that the tenant is deducting TDS at applicable rate of 31.2%. Thanks.
Hi
Thank for useful info. Just a query.
I am an NRI/OCI. I have some unit linked insurance products which I intend to encash shortly- The ULIP company ( ICICI Prudential) will only credit this to my NRO account.
If I wish to then transfer this to my NRE account- do I submit the relevant forms 15 CA and 15cb to my bank, or so I submit them to income tax department directly and give a copy to the bank? Would any other documents be needed?
Also, is this a service which you would be able to provide and how do I get in touch privately with you? I assume this can be managed online / by email etc?
many thanks
1. Form 15CB and 15CA are submitted online to the income tax department only. You would only submit acknowledgement of the forms to the banks. The bank may ask other supporting documents as per their internal requirements.
2. Yes, we do provide the service. You want us to provide the service please contact us. Thanks.
Hi sir,
I am a NRI. My father has a NRO account. I am listed as a nominee. He recently passed away. I want to transfer the funds to a foreign bank.
Do I need a PAN card?
Is the funds taxable? Do I need to a 15CA/15CB?
As you are a nominee, it can only be credited to your bank account (NRO) in India. Once credited in your NRO, you can remit the same with 15CB/15CA. As 15CB/15CA is required, you would need a PAN. You can try to convince the bank where your father had an NRO account to transfer without 15CB/15CA as it was inheritance but bank may not agree and you would need to follow the procedures.
Also, please note that a nominee has a right to receive the funds not own. so while you are a nominee, the money would go to the person as per will of your father. If there is no will, all the family members would have equal share. Thanks.