Finally, the Central Board of Direct Taxes (CBDT) issues Notification no. 93/2015 dated December 16, 2015 that is both reasonable and practical for anyone making payment to a non-resident or an NRI remitting money outside India or transferring from NRO to NRE account. The important changes under the revised Rules are:
- Form 15CA and 15CB will NOT be required for
- Any payments included in the specified list. The nature of payment in specified list has been expanded from 28 to 33 including payments for imports, family maintenance and savings.
- Any payment by an individual for remittance which do not requiring RBI approval under its Liberalized Remittance Scheme (LRS)
- Form 15CA has been revised and now has 4 parts (Part A, Part B, Part C and Part D) to be used under specific circumstances.
- For any payment chargeable to tax, if the aggregate of such payments during the year does not exceed Rs. 500,000, Form 15CA Part A is to be submitted.
- For any payment exceeding Rs. 500,000, if a certificate or an order from the Assessing Officer is obtained, Form 15CA Part B is to be submitted.
- For any payment that is (i) chargeable to tax, and (ii) amount of payment or sum of payments exceeds Rs. 5,00,000 during the year, and (iii) order or certificate from Assessing Officer is not obtained; A CA certificate in Form No. 15CB and Form 15CA part C will be required. The CA certificate in Form 15CB is to be submitted electronically.
- For any payment that is not chargeable to tax and is not included in #1 above (i.e. Form 15CB and Form 15 are not required), Form 15CA Part D is to be submitted.
I have prepared a flowchart for better understanding. 
In summary, Form 15CB and Form 15CA are now required only for any taxable payment exceeding Rs. 500,000 for which Assessment order or certificate is not obtained.
The amended Rules are applicable from April 1, 2016.
Hi
I am citizen of canada
My mother is citizen of india and permanent resident of canada
My mom has money in saving account in bank of baroda little more than 5 lacs
If she wants to transfer this money from india to canada as gift to me do dhe need to fill form 15 CB and 15 CA
Amar
You both are NRIs and can only have NRO account. Please convert your mother’s resident account to NRO. From NRO, shce can transfer funds to her NRE or her Canadian account easily and then she may gift to you in Canada. Thanks.
If a mother wants to give gift to their son and daughter i foreign currency, so in 15CA which part are require to be file part A, B, C or D..?
I don’t think it is not required as it is included in the specified list. If the bank does not agree, you would need to provide the form as required by the bank. Thanks.
What I am not able to clearly understand that if NRO to NRE transfer is treated as family maintenance and Savings.. Bigger issue is if banks will still enforce or request 15 CA and 15 CB as they have been doing now for NRO-NRE transfer.
Can you make this a bit little more clear?
1. How can a transfer from NRO to NRE treated as family maintenance? You may argue family maintenance only if you are transferring amount in USA. Also, reasonable amount as I don’t think transferring Rs. 1 Cr can be for family maintenance.
2. Actually, the bank is not ready to take any chance about wrong declaration being made by their account holders so insist on CA certificate that there is no income tax outstanding on such transfers. Thanks.
1) Even for family maintenance and amount is low, you can not transfer the money to USA without converting the money to NRE.
2)Why NRO to NRE for the same person is not treated as SAVINGS. It may not be family maintenance, but it surely is savings..
1. You can also directly remit to your US accounts.
2. As local funds can be deposited, and as there is not much awareness about Income Tax and FEMA laws relating to payment to NRIs, especially relating to TDS, there is no way for banks to know whether tax has been paid or not. Once money is in NRE account, there is no restriction on repatriation so banks/RBI/Income tax would like to make sure that there is no tax liability on the amount being transferred to NRE account. Else, no NRI will pay the tax in India. Thanks.
Can you also please also make it clear for me that if NRO to NRE transfer is chargeable to TAX or not chargeable to TAX?
Even prior to this rule update in December 2015, family maintenance and savings was in the specified list and I do not think it is newly added. Banks were requiring Forms 15 CA and 15 CB all along… ICICI, HDFC, SBI, none of these banks have updated their websites yet for any different action from April 1, 2016.. It is evident that there is still plenty of confusion out there…
Each bank has its own procedures and internal requirements to comply with legal requirements. With change in laws, confusion is common as while bank wants to be more customer friendly, they do not want to be against the law. Unfortunately, a lot of people are ready to make wrong declaration about actual purpose or ultimate use or source of funds and then please ignorance or mistake. I don’t think bank is ready to take that chance so want to be more conscious. However, if you can prove with proper documentation, I would think they do understand and make customer experience simpler and less complicated. Thanks.
I have NRO and NRE both the accounts and I am Biritsh citizen, last week my PPF account is matured (after 15 years) and bank has given me the final settlement cheque which I deposited in my NRO account and now can I able to transfer that funds from NRO account to NRE ? Do I need to fill up form 15CB & 15CA ?
I need to transfer only 4,75,000 Indian Rupees from NRO to NRE and then I might take funds back in UK or put it in NRE fixed deposit in India.
Please help.
Thank you.
Maulik
I would think you would need only 15CA Part D as per updated notification. However, please check with your bank and get a confirmation. Thanks.
Hello Mr Patel,
My mother recently passed away and I’m the nominee on her bank account. Her bank is sending me a demand draft that I will deposit in my NRO account at ICICI bank. I would like to repatriate those funds to my US bank account. The amount will be somewhere between 6 to 8 lakhs. I have already left India and am back in the US.
1) What category does cash inheritance fall under? Gift? Family Maintenance?
2) Will I need to file Forms 15CB and 15CA?
Thanks!
1. Please note that as a nominee, you have right to receive not own the funds. So, if your mother had a will and if she willed that the money is to be paid so someone else, it won’t make you the owner of the amount. If she died without a WILL and you are not the only child, all siblings would have equal right on the amount.
2. Amount received during lifetime is gift and after death is inheritance.
3. Assuming you are the only child or your mother willed the amount to you, it is your property and you are allowed to transfer to NRE or to USA. If the amount is more than 5L, 15CB/15CA would be required. Else, you may just file 15CA part A to transfer the funds. Thanks.
My wife (NRI) got some money in cash from her parents and this amount was invested in the NHAI 54EC Capital Gains bonds. These have matured and she wishes to transfer this amount along with the relevant interest to her NRE account so she can set up NRE FD that is tax free. Can you advise on the various forms that need to be sent to the bank? All transactions were carried out from her ICICI NRO account and the NRE account is with ICICI as well.
Thank you
1. Why would your wife invest in capital gains tax bonds unless there is a capital gain on sale of an asset. Any gift money received from parents is not taxable.
2. Anyway, please contact the bank and understand the required forms and procedures. I would think Form 15CB/15CA would be required as the nature of remittance is part taxable (interest). Thanks.
Person A is having the sale proceeds of Residential House in India in NRO account and he want to transfer the same in to his NRE account. In this transaction he is not having any Capital Gains and hence no tax liability. In this case what is the form to be submitted to the Bank along with request to transfer the funds.
Only CA or Income Tax officer can determine whether the sale of property resulted in a capital gain or not. As sale of property is a taxable transfer, I would think you would either need a certificate from ITO or CA (15CB) as well as Form 15CA to transfer funds to NRE account. Thanks.
my uncle is residing in US and has been receiving monthly pension,but for the past 3 months pension has been stopped.On contacting the branch the bank officials says FORM 15CA 15CB is to be submitted.Please confirm does he need to fill form 15ca and 15cb
You may convince them that this amount is for his family maintenance and no 15CB/15CA would be required. However, if they don’t agree, please open the NRO account and credit the funds in NRO account and then transfer the funds to his US account. Thanks.
Pl tell whether form 15ca generated as per previous (old) rule 37bb before 31st march, 2016 is valid for use/to give Bank after the applicability of revised rule from 1st April, that is now. If applicable till what time can we continue to do so, the validity, to a bank for transfer. . .
As 15CA includes proposed date of payment and date of payment would be in April, I would not think the old form will be allowed. However, as you have already submitted it online, you may argue with the bank to remit using old 15CA and bank may agree. But I doubt that they will agree as they will insist on following updated procedures. Thanks.
Hello Jigar,
I have found your posts very helpful and I am in a unique situation that I am hoping you can provide some advice. I have an NRE account having funds remitted from overseas. I am planning to utilise these funds in India. At some stage (about 12 months from now) I would want to deposit these funds (same amount as withdrawn) back into my NRE account with a view to either create a NRE FD or remit back overseas. Will this be possible and if so will I need any declaration of these funds being non taxable from a CA? Thanks for your help.
Regards – Rani
It would depend on where you plan to utilize the funds out of NRE account. Certain investments or utilization is on repatriable basis so can be credited directly to NRE account. Some are not. Thanks.
I want to transfer Rs20 lakhs ( received from PPF maturity) from NRO to NRE account.When filling in form 15 CA online it asks for RBI purpose code in the field – nature of remittance..I have checked list of pupose codes.Only family maintenance and savings code S1301 suits for such transfer.This code does not come in list of value so I believe that form 15 CA is not required for NRO to NRE transfer.Is my assumption correct? Code S1301 family maintenance falls in scheduled list which does not require form15 CA and form 15 CB.
Please note NRO to NRE can never be covered under family maintenance/savings. Banks also would not allow it as they are not sure whether tax, if any, has been paid. Please note the purpose code is of “nature of payment” and not of “funds/amount”. Thanks.
Hi Jigar,
I am a British Citizen. I have a NRO FDR with Bank Of Baroda. Every year I keep on renewing it but it’s not helping my cause as I can’t utilise the funds. I wish to repatriate the entire FDR. The funds are in excess of 6 Lacs. What shall I do ??
Kindly help. Many thanks.
Please contact your bank and understand their revised procedures. Please contact your CA and make sure he files/help you file required forms. Thanks.
Dear Sir,
First of all, A Big Thanks to you for helping us with your knowledge.
Iam an individual (graphic designer by profession) and I make payments online to the tune of Rs.300000 (per Financial year and no single payment exceeds 25000) to google and Rs.70000 (per Financial year and no single payment exceeds 10000) to any other foreign company or national.
What is the tax liability on me & what is the procedure to be followed.
Thanking you in advance.
I think with the revised procedures, you may not need 15CB. But may be able to remit by just filing 15CA part A. While there is no tax, you may need to consider Equalization levy, introduced by the recent budget. Please contact your CA. Thanks.
Hi
I am a British Citizen and hold an OCI card. I have about INR 6000000 in my NRO account. INR 3500000 was a refund from a deposit I sent to a builder in India but then withdrew. The rest is from rental income for which tax has been paid. I have approached my bank HSBC in India who suggest I fill form 15CA / CB. I am having difficulty filling 15CA as the reason for transfer has a drop down menu and not sure which one I should choose. Any thoughts / suggestions will be much appreciated
Please get a confirmation whether 15CB would be required or not. I don’t think so. However, if it is required, get the CA certificate in 15CB and then file Form 15CA part C. You may also have your CA file the form on your behalf. Thanks.
Hi Jigar!
First of all thank you for the very helpful post.
I have an NRE account which I need to convert to resident account since I am back in India and don’t have any legal status in any foreign country.
I am planning to go back to Canada and I wanted to know if forms 15 CB and 15 CA will be required when I convert the resident account to NRO in future and transfer money back to a new NRE account. Annual interest that I am currently earning (at 4%) is well below the taxable limit of 2.5 lacs (if am not mistaken).
Also, if CA certificate is needed in future, will it be enough to show the original inwards remittance transactions to NRE acc as well as the NRE account statement as proof of source of funds?
Thanks!
1. If you transfer funds to resident account, on becoming NRI in future, you would transfer funds to NRO and then to NRE account by following procedures and requirements applicable at that time. If you are planning to go to Canada, you may want to transfer funds to RFC (Resident Foreign Currency) account and when you move to Canada, transfer the funds to NRE account to save all the trouble. Thanks.
Hi,
My cousin brother staying in Kenya has sold his immovable property in India which he received as inheritance due to death of his father,
Property purchaser deducted TDS @ 20% and balance payment made through Demand Draft in Indian Rupee, my brother has deposited the DD in his NRO account in India..
Now my brother want to transfer this money in his bank account at Kenya so what procedure he need to follow, as bank insist for FORM 15CA & CB but since tax already paid on this amount and also it is only for personal usage we think Requirement of Form 15CA & CB no need to follow.
please advise your comment…
Nirmal Shah
As TDS is deducted, it would be very easy to prove to bank that tax has been deducted and remit the funds. If bank insist on 15CB, please contact your CA for the same. You would follow whatever the bank tells you as you want the money remitted to Kenya. If you don’t want to transfer the funds through a bank who does without 15CB/15CA. Thanks.
Dear Sir,
My uncle had an NRO account with SBI in India and he deceased 2 years back. He left a will in favour of his daughter who is residing and a citizenship of Swiss. She approached to the said bank with claim to remit the money into her Swiss account which is lying in her fathers account in the said bank. She already provided all the documents required by the said bank. Please let me know whether 15CA & 15CB require to remit the fund to her Swiss account by the Bank. Weather it can be treated as inheritance due to death of his father?.
Please give me your valuable advise through my e-mail.
Regards,
Mani Nair
1. Yes, it is inheritance through WILL.
2. Technically, 15CB/15CB is not required but bank may insist for both. However, I think your cousin may just fill 15CA part D and will be able to remit the funds. Thanks.
Dear Sir,
I am an NRI staying in Australia and want to transfer money from NRO TO NRE account of amount Rs.15000000/-. I asked my CA to fill up form 15CB but it seems they are confused with this revised form of 15CB and for nature of remittance coloumn they are not able to understand which option to select. Rs 15000000/- is divided in two parts 50 lacs belongs to sale of property receipts on which TDS of 20% already deducted and remaining Rs 1 Crore belongs to FD Maturity. Please advice and if possible please provide a sample filled up form 15CB for transfer from NRO TO NRE.
As both nature of payments are taxable, 15CB/15CA would be required. The purpose code may be combined or two separate 15CB/15CA would be submitted. Please contact your CA. Thanks.
Dear Sir,
My client is a canadian citizen and wants to transfer his funds from NRO to NRE account.
His funds consist of two parts major portion belongs to NRO FD maturity amount and remaining part belongs to sale proceeds of property sold in India on which TDS of 20% already deducted. Query is i have to fill form 15CB for such transfer but as per new form what would be ‘ nature of remittance ‘ to be selected is not clear. Please advice on that.
Regards,
Ruchika
You may combine or generalize the purpose or issue two separate forms. Thanks.
One of my client who is NRI has sold the immovable property in india on which TDS @ 20% has been deducted. The NRI has filed the ITR in India and claimed refund of TDS.
Now, he wants to transfer funds from NRO to NRE account ( Sale proceeds + TDS Refunded) total sum exceeds 50 lacs
I have tried to fill Form 15 CA- Part D, but i am having one query as below:
The purpose code as per RBI to be selected in this case?
S 1301- Remittance on family maintainence & savings
S1306- Remittance towards refund of Taxes
S1307- Ouflows on account of migrant transfer including personal
which code to be selected??
Please advise
Thanks in anticipation
As payment is taxable, you would need to issue 15CB and provide 15CA part C for transfer, provided the buyer did not give 15CB. Thanks.
Sir,
In the above case, the transfer was made in FY 2014-15 and ITR has been filed by NRI showing capital gains ( -80000) in the year and claimed refund of Tax.
But he is repatriating funds in Dubai Account in FY 16-17.
So, if he fill these details in current year wont be there any problem.??
In that case, the transfer would also include an element of interest. I would suggest you to contact the bank and follow their instructions as bank needs to be convinced for the same. Thanks.
Grateful if your could answer my query.
Myself and wife moved overseas in 2011. We did not convert any of our resident savings account to NRO. One of my wife’s account has several FDs and we currently escape TDS by filing up the 15H form as her total income is below the exemption limit. We are now thinking of converting the account into NRO. Post conversion to NRO, would i be able to easily transfer the funds into an NRE account? We intend to do this immediately as we do not want to go through the hassle of claiming refund from the Tax department on any TDS deducted on interest income on the term deposits. Grateful for your advice.
1. You are in contravention of FEMA law as you have not changed your residential status with the bank. NRIs are not allowed to maintain resident account and submit form 15H. Currently, FEMA and Income tax laws are lenient but if they found out, you may be subject to penalty.
2. Yes, what you plan to do is okay. Thanks.
Thanks. Isn’t this common among NRIs to not change the status of their bank accounts to NR when they move overseas? I intend to transfer the funds ASAP. I understand this will require a certificate from a chartered accountant certifying that tax been paid on the amount being transferred. Will any CA be willing to provide me such a certificate given that I have claimed TDS exemption and change to NRI status 5 years ago and breached FEMA/IT laws? May i avail your services? What kind of fees are we looking at to get this done? Tks.
I would recommend you contact your CA for the same. Thanks.
I need to transfer money from my ICICI NRO account to my NRE account so I can repatriate the amount to my US bank, as I need to clear my credit card loans here in the US. I am an US Citizen, and have Overseas Citizen of India card as well as PAN card of India.
Source of fund: In 2014, on the death of my father, I inherited his house in Bangalore. Now, I sold the house in 2016. I got INR 1.2 crores as payment.
a) As I inherited the house from my father, hence it’s ancestral property. Do I still have to pay 20% tax for the transfer from NRO account?
b) As I am transferring most of the amount to clear my loan do I still have to pay such a huge tax?(I intend to transfer INR 1 Crore of which INR 60 Lakh will go in clearing my credit card debt)
c) I would like to transfer INR 10 lakh first, and then the remaining amount.
Kindly advice how best I can transfer the money to the US.
1. There is no tax on transfer from NRO account. The tax is on sale of property. I would assume TDS was deducted or you have paid the tax on sale of property. Only after that you may remit the funds to USA.
2. As mentioned above, there is no tax for transferring money in your one account to your another account.
3. You would need to complete procedures for every transfer. Please contact your bank and your CA. Thanks.
Hello sir I’m an Indian and my fiance is from Africa. I just wanted to ask is there any tax to be paid or any form to be filled if I made an international trip and if so how many times can I travel aboard cause some people asked me to write a letter to concerned officer and also fill a form regarding this as tax may be applicable. My next question is if my fiance sends cash through western union or money gram should I still have to pay tax even on this? I would appreciate your kind reply and also I’m happy I found this blog which was quite helpful but I’m just confused with people’s advise on this. When I reached here to this blog I got a new hope and now I’m kind of relaxed. Thanks for your blog it means a lot to me. Blesses
1. You can travel as many times as you want. There is no need to inform income tax department.
2. As you are not married yet, any transfer from your fiance to you would be considered as gift from non-relative and would be included as income if it exceed Rs.50,000 in a year. Once you are married, he may send funds as family maintenance and won’t be taxable for you. Thanks.
Hi Jigar,
Recently, my friend and I entered into an arrangement to exchange USD for INR. My friend needed USD to pay her son’s school fees in the US. I wanted to exchange USD for INR and deposit the INR in my NRE account with ICICI Bank.
I do have the receipt of the transaction in USD that acknowledges the funds in USD that I transfered to my friend’s son’s account here in the US.
I have paid the taxes on this amount in the US. Neither my friend nor I are making any profit in this transaction.
Can my friend deposit a cheque for equivalent INR in my NRE account?
If not, what are my options to get these funds deposited in my NRE account?
Thanks,
Rohit
1. This is a hawala transaction. The transaction occured outside of the banking transaction and is not allowed.
2. Transfer from your friend’s account to your account would be considered as gift from a non-relative and would be included in your Indian income tax return in India. As per FEMA, gift to an NRI friend is not allowed.
3. Your friend may not deposit the funds into NRE account as only External (foreign) source money can be credited to the NRE account. Thanks.
Hi,
Thanks for running this extremely help forum! I am a US Citizen and an OCI who would like to transfer funds from my own NRO Savings account to my own US bank account i.e. I am the outward remitter and I am the beneficiary (USD). This money is for ‘Family maintenance’. Do I need to worry about 15CB and 15CA or can I remit the money by simply filling out the Indian bank’s outward remittance form?
Thanks.
I doubt it as the source of money needs to be checked. If source is taxable, (e.g. rent, interest, capital gain), 15CB/15CA may be required as the bank would not know whether tax has been paid or not. However, if the source is not-taxable e.g. inheritance, you may not require 15CB/15CA. Please contact the bank and understand the procedures. Thanks.
Hi Jigarbhai
I a recent NRI from USA will be returning to India in June . I ave stocks , MFs which I plan to sell and put the money in NRO after opening one. As resident I do have SB , fixed deposits in banks in India. Now will I be able to switch over to NRO a/c and from NRO to NRE what is the procedure and what docs are required to do so.
Thanks
Savithri
I am not sure if you are moving back or just coming for visit. If you are moving back, you would be considered a resident and can only open resident account. If you are coming only for a temporary visit and are still an NRI, you can open NRO, convert all accounts as NRO and then transfer to NRE. The only requirement is that you need to convince the bank that all tax on the NRO funds is paid and no tax is due. Please contact your bank and understand the procedures. Thanks.
i bought a immovable property(agriculture land) before 35 years and sold in 2015. i paid capital gain tax with my income tax return. i deposited the after tax paid amount in NRO acct. now i want to transfer the same to NRE account. do i need only 15CA with partD or both 15CA and 15CB?
please guide me in the matter. Thank you
As the money in NRO is as a result of a sale of property subject to capital gain i.e. income chargeable to tax, you would need form 15CB and form 15CA for the transfer to NRE account. 15CB Part D would not apply to you. Thanks.
Hi,
Thanks for all the replies to make every one understand the NRI money transfer procedures.
I was transferring funds from Australian account to ICICI bank account in India, through SBI Sydney. This was over a period of 6 years. ICICI bank account was a resident account.
3 years back I became permanent resident and 2 years back, got the citizenship. But I converted my resident account to NRI account 6 months back.
My dividends, bank and FD interest got credited to my resident account and also I spent money from this account on my trips to India.
For the last 6 months, I am trying to transfer my funds from ICICI bank NRO to NRE account, without success.
Bank wanted, 15 CB and 15 CA, it was provided. Later they wanted FIRC/KYC certificates, which i got from SBI and provided to ICICI bank. After this 15 CB got expired, so they wanted a new one. Latest 15 CB was also provided to ICICI. Now they have come back to me saying some RBI scrutiny team is saying funds consumed from NRO account is not allowed and only 50% of the money transferred will be transferred to NRE account.
Please guide me the next course of action to put an end to this saga.
Regards,
Sunil.
This is the first time I heard about partial transfer. If you transferred the money from Australia and you want to transfer the funds back to NRE, I think it is allowed. The only non-compliance in your case would be that you maintain the resident account as an NRI. While there may be penalty, as the source of funds is from your Australian account, I don’t think it can’t be allowed. I don’t want to speculate more without knowing the details. Please email with additional details to jigar@nareshco.com and we can review the same in detail and help you transfer the funds to NRE account. You understand that the service would be chargeable. Thanks.
Hello,
Greetings!
Is there a sample 15CB form to understand the information requirement? or a guideline document available?
Thank you!
Chetan.
Please check the CBDT notification 93/2015, which has a blank 15CB form. Thanks.
Hello Jigar ,
I would say one of the best advices /queries answered related to NRE .
I am living in Europe and transferring money to my Indian Savings account from last 6 years .
The money is used for expenses in India like construction of house,family expenses etc I opened NRE account last year only
I have Fixed deposits worth 15 lacs in my Saving account ( TDS deducted regulary during FD maturity). i never filed TAX return from last 6 years as there was no income in India .
I have sold the house this year which is on my Father’s name for around 40 lakhs . Now part of this money is paid in cash and part by cheque .All money is currently in saving’s account
Is it possible that i transfer all my FD’s and 40 lakhs (from House which i sold) to my NRE account ?
Will there be any TAX liability ?
1. Cash received on sale of property is not official sale amount and may not be able to remitted abroad as you won’t be depositing the money in the bank account.
2. If the investment and sale of property is in your father’s name. Your father would need to pay tax and file tax return. He may give gift of the money to you in your EU bank account.
3. There is no tax on the gift received from father in India. The tax liability would be on sale of property only. Thanks.
my brother booked a flat in bangalore 2 years back value of which is around 1.25 crores. He had paid 70 lacs for the same through his NRE account. The builder is not in a position to complete the project and have refunded the money after deducting 7 lacs Rs 63 lacs. The amount is received in NRO account. Now my brother wants to transfer the amount from NRO to NRE account. Is there any tax implication of the same. How to transfer the same in the NRO account. D i need for file 15 CA and CB.
1. The return on cancellation of immovable property can be credited directly to NRE account. You may need to prove that it was a refund of money paid from NRE account. It is allowed. Please try to convince the bank to directly credit to NRE account.
2. Tax is only on income. If your brother received any additional money than he paid for purchase of property, it would be considered as income and chargeable to tax.
3. I would think you do not need any 15CB/15CA. However, if bank insist, you may just use part D of 15CA. Form 15CB and Part C of 15CA are the last resort. However, please check with the bank. Thanks.
Dear Mr. Jigar,
I’m an Indian national based in China and have lived here since 2006. I was working for an Indian firm that closed down its China operations in 2014 . I have paid Tax in China and have all Tax certificates till 2014 .
From Jan 2015 till Dec 2015, I have been providing freelance / consultancy services (usually expediting, sourcing leads, inspection services etc) to a mid sized Indian company based in India who have promptly remitted me with monthly payments.
However these past two months (Apr, May 2016) they have have been insisting me to provide a Tax Residency Certificate from China and fill up FORM 10F.
My Payments have been held up due to non availability of this from my side. I could not furnish a TRC as I was out of employment last year and hence couldn’t file any taxes in China last year (2015)
1. Could you kindly suggest any ways for the Indian firm to remit my consultancy charges without deducting the hefty TDS charges.
2. Is it possible for them to use Western Union to remit the payment ?
3. I can furnish a TRC for this year (which will be issued in 2017), as I have currently found employment in small Chinese company here. I however wish to continue providing my consultancy to the Indian company and would want them to continue paying me for my services.
My family CA has no clue on this and I would highly appreciate Your guidance and help on this matter.
Kind Regards
Jason
1. Without TRC and/or 10F, your resident country can not determined and benefit of DTAA – Double Tax Avoidance Agreement can not be claimed. While you did not have an employment, you earned as a consultant so you should have filed the tax return and claimed to be resident of China for tax purpose. However, you may provide your Indian PAN and may reduce the rate of TDS%.
2. Western union is for personal remittance and can not be used for business remittances.
3. If you can wait to receive payment for a year, you can do that. I am not sure about the DTAA rate between China and India but I think it would be about 10%. If you provide PAN, your rate could be 10.82% so not a big diff. However, please check with your client. Thanks.
Thank you so much for your valuable time and comment Sir.
Sir
Can u advise what is the position if the person is chinies private company or local chinies authority and that don’t have any Indian PAN but they have remitted certificate TRC
You would need to understand the nature of payment. If no PAN, TDS @ 20% will apply. However, recently, the CBDT has issued a notification no. 53/2016 dated 24 June 2016 indicating the non-applicability of 206AA if certain nature of payment and conditions are met. If the payment qualifies nature and conditions, you may deduct TDS without regard to 206AA i.e. 20% if no PAN. Thanks.
Thank you so much for the information provided in your blog.
I would appreciate if you could provide me your expert advice on my queries.
I’m holding an Indian Passport and working in since year 2007 with Singapore Permanent Resident status.
I am moving back to Ahmedabad-India permanently in Aug-2016 and still I will be holding a Singapore Permanent status which is due to renewal in 2018.
Here are my queries:
1) I haven’t filed a tax return in India since I moved out of India from Feb-2007. However, I have been paying a tax in Singapore for year 2007-2015 and in Australia for year 2015-2016.
Is this okay?
I don’t have any income in India other than interest earns in NRE saving account.
2) Is it okay to transfer the money from overseas bank account to NRE account in India once I moved to India permanently
(I will be still holding Singapore PR status while in India).
3) Do I need to pay income tax OR declare while filing a tax return in India (financial year 2016-2017) for the money transfer from overseas bank to Indian bank after I moved to India permanently.
4) I may need to transfer money from Singapore provident fund (cpf) to India in year 2018/2019 after I surrender my Permanent Resident status in Singapore.
Any advise on money transfer and for tax in India?
5) I will be in India >182 days and no income earning in India during financial year 2016-2017. Do I need to declare my overseas earning in year 2016-2017 while filing tax return in India? I will be paying a tax in Australia for my overseas earnings.
6) Can you please recommend investment in Bank FDs/Mutual funds/FCNR in India which gives guaranteed/secured tax-free return?
7) Can I make FD/FCNR for 5 years in India just before I move there. Is it legal to have NRE FD/FCNR for a period of maturity (e.g. 5 years) regardless of resident status in India?
8) What is the time line for transferring the amount from overseas to India once become a resident in India.
9) How long I can keep my NRE account in India. (I will be still holding Singapore PR status while in India till mid year of 2018).
If I must need to transfer NRE account to local saving account, any tax ?
1. IT return is required to be filed only if the taxable income is more than basic exemption amount.
2. If you are moving to India, you are not allowed to maintain NRE account and any interest on NRE account/FD would be chargeable to tax in India.
3. Tax is only on income and not on money transfer.
4. It is not possible to answer now as the tax and money transfer rules and requirements may change in future.
5. Foreign income /asset declaration is for Ordinary Residents of India only. Your permanent residency and/or citizenship of other country do not matter.
6. Please contact us for detailed advice.
7. While you may have FCNR FD until maturity after return and earn tax free interest. NRE FD interest would become taxable on return.
8. There is no time limit. You may continue to hold the same in future. however, it would be taxable once your status is “Ordinary Resident” of India.
9. PR and citizenship do not matter. As you move back to India with an intention to stay for an uncertain period or for a job or retirement, you are considered as “Resident” under FEMA and not allowed to maintain NRE account.
It is very critical to plan your finances and invest in a way to save the tax in Indian and/or abroad as well as for global compliance. Please contact us if you seek our advice for effectively managing your investments. Thanks.
Hi,
I am currently working in Abudhabi i.e UAE. I have recently opened an NRO account for trading Indian Futures & Options segment. I also have a NRE account with the same bank. I want to transfer my profits from the trading i.e from NRO to my NRE. Is this possible? I read that it is not possible to transfer any money obtained by any investments. If possible then do i have to fill 15CA & 15CB? I also read that i can transfer the amount after paying the taxes for that money. How often can i do this transfer? I know that i cannot exceed 100,0000 USD per year. Should the investment come from my NRE? i.e Is it necessary to transfer money from NRE to NRO and then trade using this money and transfer the profit back to NRE? The purpose of this transfer from NRO to NRE is for clearing loans & credit card debts in UAE.
Investments in F&O in India can only be made on non-repatriable basis so you are not allowed to invest from NRE. While you can, the proceeds can not go back to NRE but must be credited in NRO account only. Also, restrictions on remittance would apply. Thanks.
Hello jigar
I want to deposit 50000cad dollar into my nre account in india for 5 years when I bring this money back to canada I have to pay any tax on this money thank you
I am not able to understand your question. Please elaborate. Anyway, if you transfer funds in to NRE account for 5 years and wants to repatriate the same from NRE to your Canadian bank account, you can do that. There is no tax on the transfer of principal amount. However, if you earned any interest, you may have to pay tax in Canada depending on tax laws of Canada. There is no tax on NRE interest income in India. Thanks.
someone wants to remit some amt from its NRO to NRE, as the amount is refunded back into NRO a/c via builder on cancellation of property purchase, however earlier payment was made from NRE a/c , i.e non -taxable, what should be selectd in rbi purpose code,
“capital “or “others”. and further which is in the secondry code under the same. Plz help.
You will select the codes based on the drop down list that closely match the transfer/purpose. Thanks.
no code specifically or closely matches with it, thats why which should be selcted, in others there is an option for “refund fon account for non-export” and else capital recipt in supra column
It is not a refund. I think the closest would be “Family maintenance and/or savings”. However, please check with bank and/or CA. Thanks.
Hi Jigar,
Thanks so much for sharing your knowledge. I have remitted money to NRO account a few years ago and would like to get back money in Australia now. Can you suggest me what to do and which form do I need to submit? I also do not have NRE account, only NRO.
Thanks
As an NRI, you are allowed to remit upto $1 million out of India. So, you are allowed to transfer money back to Australia. Please check with your bank where you have NRO account to understand the procedures and requirements as you need to follow and convince them about the same. I think bank may ask for 15CB/15CA for the transfer. Please contact your CA or us for the same. Thanks.
Dear Sir, i have both my nro and nre account with same bank in india. I have taken a loan, the emi will be deducted from my Nre account and my rental income will be deposited in nro account.. both emi and rental income monthly amounts are same. Can i put standing instruction to transfer amount from nro to nre account? So that i will not have to send money every month from outside india.
Please change your loan so that you can also pay from your NRO account. As per RBI, 100% of rental income should be used to pay for the loan, even if it is higher than the installment amount. For transfer from NRO to NRE, you may not give standing instructions as a CA certificate may be required for the transfer. Thanks.
Thanks sir for valuable comment.
What do you mean by “please change your loan”
Please contact your bank and request that they allow you to pay from NRO account. Thanks.
I HAVE A PARTNERSHIP FIRM,
I HAVE TO MAKE PAYMENT AGAINST ADVANCE PAYMENT FOR PURCHASE OF MACHINES FROM CHINA
WHETHER THE SAID TRANSACTION IS CHARGABLE TO TAX AND ON WHAT RATE AND WHAT FORM SHOULD I FILLED FOR REMITTING THE AMOUNT WHICH IS MORE THAN RS 5 LACS
If the supplier has no business connection in India, I don’t think you need to deduct any tax as it is import of machinery. Thanks.
Client lives in USA as a US Citizen. He has an OCI (Overseas Citizen of India) passport–not a NRI. Sold capital gain property in India and deposited to an NRO account at Axis Bank in India. Does not have an NRE account. He wants to wire some of that money to his bank in the United States. When we call Axis Bank to ask the procedure to wire funds, no one gives us an answer. Some representatives say you can’t wire from an NRO account, only from NRE. No details are given. Can you help?
As sale of property is a taxable transfer, CA certificate in form 15CB and filing of form 15CA would be required. If you provide both forms and other documents as required by the bank, they would transfer the funds. Please contact the bank and understand the procedure. Please contact us if any question. Thanks.
Hi,
Me and my wife received some funds as gift from my Canadian citizen Son into my Ordinary Savings bank account and I earned interest by investing in FD’s. I filled the return in India and tax is paid for this earnings every year.
Me and my wife are now canadian citizens and hold NRO / NRE accounts in same bank in India
1.) Is is possible to transfer above principal / interest earned in Ordinary savings bank to transfer in NRO account and herewith to NRE account for me and my wife. If yes what will be the procedure of doing so.
2.) If above option is not possible, is it possible for my son to repatriate the funds Principal and / or Interest amount back in Canada and than transfer to my NRE account in India. If yes what will be procedure of doing so and tax obligation in India
I will be thankful for your advice on this
1. I understand that you are not Canadian Citizen. The question is whether you are a resident of India. If you live in India, you are still an Indian resident and can not open NRO/NRE account. Assuming you are an NRI, you need to inform your bank of your change of status and your resident account would be converted (re-designated) as NRO. From there, you can transfer to NRE account. Please contact your bank and understand the procedures.
2. I would not recommend as this is not his money. As he has gifted the same to you, the money is yours. Also, by transferring and converting back, you would end up paying 2x conversion charge of banks. Thanks.
Good morning Sir,
I live in UK and have British passport with OCI. Iam about to buy a property in UK.
I need initial deposit of 42,000 pounds.
Unfortunately I have only 10,000 pounds here in UK for the deposit.
So I have to sell a residential plot in India worth 19 lakhs and bring the money to UK. Government value of the plot is 8 lakhs though (in documents ).
My wife who is having an Indian passport is going to get a loan from INDIAN bank against an agricultural land which she owns- for 8 lakhs.
My Father in law is going to give us 3 lakhs as gift.
I read your various post and it was very help full. My question here is, Could you please kindly let us know, the taxes we have to pay when transferring money to UK.
Do I have to pay taxes to all the above money to be transferred to UK
I bought the above plot less than 3 years using the money I earned in UK to buy it.
Also, Iam sending regularly around 200 pounds every month to India for the last 5 years to my family.
Please advise.
Saravanan
1. Amount borrowed in India can not be remitted outside India.
2. Consideration received on Sale of property after payment of tax can be remitted to UK provided you have paid the tax and submitted form 15CB/15CA to the bank for transfer.
3. Your father in law (resident) can gift your wife (his daughter) under LRS – Liberalized Remittance Scheme and can be remitted to UK.
4. Your parents can also give gift to you under LRS to be remitted to UK.
Thanks.
Hello Sir,
Thanks for sharing information on NRO to NRE transfers.
My query is – NRI wants to remit the proceeds out of sale of long term capital asset in India from NRO to NRE Account. He wants to avail for the exemption under sec 54 or 54EC of the Income Tax Act. But since there is time limit allowed to assesse to invest in new house property (1 year before ; 2 years after sale) whereas he wants to transfer now. Can I go for 15CA (Part D) and 15CB along with taking a declaration from NRI about he investing as per 54 or 54EC. Or he needs to keep money as per Capital Gains Account Scheme and then he can seek for 15CB certificate and file 15CA?
Also please confirm part D of 15CA will be applicable in this case.
Thanks in advance.
I think Form 15CB/ Form 15CA part C would be applicable as this is a taxable transfer. If an NRI is investing to save capital gain tax, the remittance would only for remaining amount. Also, I am not sure how much you can rely on the declaration. I would require client to either buy bonds or open and transfer funds into capital gains savings account. Thanks.
Dear Mr. Patel, I want to transfer my funds from NRO account to NRE account. Both these accounts are with the same bank in India. Source of all funds in NRO account is my salary remittances received from USA in my NRE account with same bank while my status was NRI. Later when my status changed to Resident Indian for the FY 2013-2014, these funds were transfered to a newly opened saving account in the same bank and the bank closed my NRI account. My status again changed to NRI in FY 2014-2015 and the bank opened a new NRE account and the bank converted my saving bank account to NRO account. I would like to transfer these funds from NRO to NRE. As mentioned above source of all my funds is my salary remittances from my employer when I was holding an NRI status and my current is also NRI. Please advice as what procedure I should follow to make this funds transfer. Thanks and regards, Rajesh
Please contact your bank and understand the procedures. Try to convince them to transfer funds without 15CB/15CA. If they insist for the same, you would need to contact your CA and complete the procedures as required. Thanks.
Hi
Wanted clarification on India-Singapore DTAA regulations on following income earned in Singapore for investment done when i was NRI but now am in India with resident tax status in India.
1. Rental income from property in singapore
2. Dividend income from equity investment in singapore
3. Interest income on bonds invested
want to know in each country ie Singapore and India which income will be taxable and what rates the income would be taxable in each country.
Thanks in advance
If you are an Ordinary Resident of India, all your income in Singapore would be taxable in India. If you have paid taxes in Singapore, you would get the credit in India. You would also get the benefit under DTAA between India and Singapore. Thanks.
Thanks a lot for reply. Under DTAA will rental income be taxed in India too if I am resident in India and if yes then at what tax rate please
You would need to check the DTAA article for the same. I think the India-Singapore treaty suggest taxing only in the country where property is situated. However, please consult your CA. Thanks.
Hello Jigarbhai,
I came across your website and read your blogs and replies to so many individuals and I personally want to thank you for providing this service. I have had NRO/NRE accounts with CITI NRI for over 15 years and I have had several NRO deposits (like Ladder) with CITI NRI and every time, Bank pays interest, the TDS of 30% plus CESS fee is deducted at source. Are there any procedure that I need to or can follow or comply with so that I do not have pay 30% plus CESS fee? Please advise.
Also, do your provide your service with fees and if so, can you kindly share it with me here or if you prefer, I deal with you on this outside of this blog? I am certainly looking for a CA like yourself with so much credentials about Indian Taxation and law for NRIs.
Thanks and Regards,
Nitin Gandhi
1. Thank you. We really appreciate your nice words.
2. You can transfer your funds from NRO to NRE and there won’t be any tax deducted.
3. You can file the tax return in India and claim the refund of extra tax paid. Also, you can claim foreign tax credit for taxes paid in India. In short, you would not pay additional tax or more tax but you would need to file tax returns.
4. We provide consulting for investments and taxation for NRIs. Please email at jigar@nareshco.com for the same. This is a public forum for general information purposes for the benefits of NRIs and we would like to keep it that way. Thanks.
If we are Canadian Citizen & we have NRE FDRs in INR with Citi Bank whether it is taxable in Canada because In India it is non Taxable.
Please reply
Thanks
I think the interest would be taxable in Canada. Thanks.
I am a us citizen. I have invested in a company in India in $. Which they used in India and gave me shares of the company. The company recently went public and has deposited money from sale of my shares into my NRO account. I have NRE account at the same bank. What do I need to do to transfer money to USA?
Thanks
You can transfer funds from NRO to USA or from NRO to NRE and then to USA. You would need a CA certificate and file form 15CA. Thanks.
I am a permanent resident in USA and my parents are resident Indians.
Can my father gift money to me under the Liberalised Remittance Scheme ?
Does my father need to deposit money to my NRO account or can he
directly send the money to my bank account in USA ?
Yes. He can directly credit your bank account in USA upto $250,000 per person i.e. $500,000 (father+mother). Thanks.
Dear Jigar,
I am residing in UK for the past 3 years and want to invest in property here. I recently converted my saving bank account in India to an NRO account. The amount in my NRO bank account is due to maturity of fixed deposits obtained as part of inheritance after my mother’s demise in 2015. The tax on interest received on the FD amounts has been deducted at source by the bank. I want to transfer this amount to my UK bank account.
The bank where I am holding the NRO account is asking me to file form 15 CA and 15 CB. I am being advised to fill in section C of form 15 CA which implies I have to also submit form 15 CB and that I will have to pay tax on the amount I am remitting to UK. Vide rule 37BB if I am remitting money to invest in real estate abroad, do I need to file 15 CB as advised by the bank . Also Can you please clarify which section of form 15 CA I need to fill and submit? Your advise in this regard will be very helpful.
Thanks & Regards
Rohan Pradhan
If 15CB is required, you would fill Part C of Form 15CA. As you are an NRI, the key is to transfer funds into NRE or to UK and then decide what to do with the money. Thanks.
Hi,
I came across your blog and was greatly impressed by the responses you have provided to NRI queries concerning taxation in India. I have got a question I am worried about and would be grateful if you could shed some light on the requirements;
I am a PIO holder UK citizen and sold a property in India in 2014. The sale proceedings were amounting to 29,00,000 INR which I invested in REC government bonds concerning capital gains (54EC) for 3 years. Being a UK citizen I had to declare the capital gains accrued when I filed my tax return and paid the tax at the UK income tax body HMRC. Following maturity of the bonds I would like to transfer the proceeds to UK through my NRE account in India and would like to know what kind of documentation/forms will be required to do so. The bank staff doesn’t seem to be very conversant with the process but if I have some primary information it might be an easier process to discuss with them.
Once again, I would be really grateful to your response in this matter.
Regards,
V Patel
The proceeds would be deposited in the NRO account. From there you need to follow procedures required for remittance of funds from NRO account to UK. As rules and procedures keep on changing and you still have 1 more year to go, please contact us when you receive the amount from the REC bonds. It is allowed to be remitted abroad. I would assume that you have been filing tax returns reporting the interest on REC bonds as income in India. Thanks.
Hello Jigar, as always an excellent and informative post. Thank you for your contributions. I had one question:
I bought some shares when I was a resident Indian. I am now an NRI and have the NRO and NRE bank accounts with ICICI Bank in India. The shares I bought when I was a resident Indian were transferred from my resident Indian demat account to a non-PIS NRO demat account.
If I sell these shares now, the funds will be credited to my NRO bank account. Is it possible for me to request the bank to do a transfer of these funds to my NRE account? Or is this NRO to NRE transfer not allowed in case of proceeds of share sale?
Thank you!
Datin
I am not sure about non-PIS Demat. I think NRIs can only invest in shares under PIS and the NRO-PIS account would have been set up. Anyway, assuming you have been holding shares as required by FEMA, you are allowed to transfer proceeds of share sale to NRE account. Thanks.
Sir we are doing business in the hotel industry so we get hotel bookings from booking.com which is a non resident company, it gives us hotel bookings for both people in India and outside India .The company also has NRO a/c in India . Earlier company did not had NRO a/c so payment was also made outside India .So we use to deduct TDS and get 15CA and 15 CB prepared. But sir according to us TDS should be deducted on bookings of India and Please tell whether now 15 CA and 15 CB is to prepared now after amendment and tell whether TDS will be chargeable or not. Kindly enlighten . Thanks in advance
Any taxable payment made to an NRI or a foreign company is subject to TDS. Only the forms and/or procedures have changed that require the forms to be filed online. I don’t think it will change the taxability or requirement. Thanks.
Dear Jigarji,
I would appreciate if you kindly le me know regarding GST bill which has passed in our parliament and mostly it will be implemented by nest year, whether any income generated by way of rent on immovable property the home owner will have to pay any GST on it and secondly that amount of GST can be recovered from my tenants.
Thanks
vyomesh shah
GST is an Indirect Tax and is bourne by the ultimate user i.e. Tenant. It is not a tax on you but on tenant. Currently, the service tax @15% is applicable if rent income of a person is more than 1000000. It is borne by the tenants only. So you must recover from tenant. However, it would depend on the agreement and the negotiation skills. Thanks.
I have sold an immovable property on which TDS @ 1 % has been deducted as the Capital Gain amount has been invested in Capital Gain bond . My query is whether for transfer of this sum ( 35000 Euro ) to Belgium ( my status is NRI ) form 15 CA /CB is required .
I am not sure which sum you are talking about. Anyway, you can transfer the funds on sale of property after payment of tax outside India. As the nature (capital gain or interest on bond) is taxable, 15CB/15CA would be required. Please check with your bank and consult with your CA. Thanks.
I have some FDs in my NRE account with ICICI bank which are due to mature in another 6 years. After having lived outside India for a period of more than 10 years, I am getting transferred to India for a period of 2 years after which I will return abroad again. I understand that I would need to convert my NRE account to resident account when I return. Once I return abroad, the account will be re-designated to NRE again. What will be the status of the FDs during the time I am in India from the tax point of view? Would I have to pay the tax on their interest during the time I am in India (2 years) even though I will be NRI again when they will mature?
As you can not maintain NRE account, you need to transfer funds either to resident account or to RFC – Resident Foreign Currency account. There is no tax on RFC account as long as your residential status is “Not Ordinary Resident”. The interest on resident account would be taxable. Funds in RFC can be credited to NRE on becoming NRI while there may be some restrictions for transferring funds from resident/NRO to NRE in future. Please contact your bank as the procedures would depend on the bank. Thanks.
Hi,
I recently transferred money (more than Rs. 5,00,000.00) from my NRO account in India to my Checking Account in the US (both in my name) under the purpose code S1301. Do I still need to furnish the form 15CB/15CA?
Best,
Mohit
As money is already in your account, you don’t need to do anything. Thanks.
Yeah, I told my bank (HDFC) the same but they are still asking me for the forms.
You can’t any more. I think it was bank’s mistake not to ask the forms BEFORE transferring the funds. Please tell them that it is not possible to issue/submit backdated forms. However, you can give a backdated letter of the situation/declaration if they want. Thanks.
Hi Mr.Jigar,
Thanks for your valuable support through your blog. It is really informative and useful. I have a small query and request you to provide your suggestion. I am NRI for the past 7 years. Before 2011, I transferred my NRE funds (say roughly 10 L) to domestic fixed deposits. Now I want to put this money back into my NRE a/c as per the procedure allowed under “NRO to NRE funds Transfer.”
What is the procedure?
What are the documents needed?
How much time it will take to get credit into my NRE a/c?
Thanks in advance for your help.
Regards,
Pavan Kumar
As you are an NRI, you are not allowed to maintain resident account and can only maintain NRO/NRE account. I would recommend you to first inform the bank of your NRI status and change your account to NRO and then do the procedures required for the transfer of funds. I would think CA certificate in form 15CB, filing of 15CA as well as providing documents/form as per bank would be required. The timing would depend on the bank and your CA. Thanks.
Sir my query is simply regarding transfer of funds from NRO A/c to NRE A/c
I am NRI and Currently I have Fixed Deposits done from NRO A/c and Bank is also deducting TDS. Apart from this I also have rent income in India.
I have been advised by Bank to shift the said FDs as NRE FDs in order avoid TDS as interest on NRE FDs is tax free.
I am regularly filing returns in India and also paying taxes.
Please advice as to which part (Part A, B, C or D) of Form 15CA would be applicable in my case.
Regards
Prateek
The requirement of forms would depend on the bank’s internal requirement. I would think the bank would require form 15CB and form 15CA Part C. Please check with the bank. Thanks.
I am a US citizen and have OCI. I deposited money from my closed out PPF account to NRO account 3 years ago. I want to wire transfer USD$24,000 from my NRO account to USA. Please kindly let me know which form are required to be filled out.
Thanks, Behram
The forms and procedures would depend on the bank. Please contact your bank and CA to understand and submit the required forms and complete the procedures. Thanks.
Hi,
Is there any Maximum Limit of amount that can be sent in a day from U.A.E. to my NRE savings account in SBI through any Money transfering exchanges..? Thank You.
I don’t think so. You may send your savings from foreign income to India without any limit as per RBI. There may be some limit for money exchange house but I am not sure. If it is a big amount, I suggest you send a wire transfer and negotiate better exchange rate with the bank. I think it can save you more than 20-50 paise per AED. Thanks.
Hi Mr. Jigar,
Your blog is very helpful. What is procedure to be followed by a subsidiary Indian company to remit money to holding company in USA. USA holding company had remits money to subsidiary Indian company against invoices as well as advances. Holding company in USA needs money for acquiring certain business in USA. Please advice.
If the payment was for invoices, it can only be sent as a refund due to cancellation of order / invoice. For advances, I think it can be returned, provided advances were made as per FEMA rules. I suggest you check with your CA. Thanks.
Hi,
If I need to transfer funds from my NRO account to my Savings account in UAE (as that is my place of residence) under the purpose code S1301. Do I need to furnish the form 15CB/15CA?
It would depend on the source of money in your NRO account and the bank. I think it may be required unless the source of funds is from outside India (transferred from UAE) as banks do not want to take risk about whether tax, if any, has been paid. Thanks.
Hello Sir,
Can 15 CB uploaded be revised??
Unfortunately, you may not revise 15CB in sole/by itself. However, 15CA can be revoked/cancelled. So if 15CA is cancelled, 15CB is also cancelled and then you can issue an updated 15CB and submit revised 15CA with the acknowledgement number of revised 15CB. Thanks.
whether any change has to be amended in 15CA if payment is made into beneficiary’s sister concern account number. Remittee name should be of party who has issued invoice or of sister concern.
While 15CA can not be amended, you may revoke/cancel the Form 15CA and resend it with correct information. Thanks.
Hi,
I am holding an NRE & NRO account. I had created an FD in NRE. At the time of maturing, for the transfer account option , i mistakenly selected NRO for transfer. Now I want tone transfer back my mony with interest to NRO account. How can I do it?
Please contact your bank and explain the error. If they can transfer, good; if not, you would need to follow procedures and submit forms as required. Thanks.
Dear Sir
I am Non Resident . In 2014 i transferred 50 lacs to my Mother’s account to buy some property in India but the deal couldn’t happen and that money left in her account. She received interest on that amount and paid tax on it but now i want to transfer that money to my NRE account.How i can do that
Thanks
It would depend on how you have treated as a nature of transfer when you transferred to your mother – as gift or as loan or as income. FEMA rules are different for each nature. I think it would be easier for your mother to give you gift of 50L. Please contact your bank to understand the procedures for gift and transferring funds from her savings account to your foreign account. Thanks.
Sir,
i transfered my salary foreign income into indian Saving Account, when i was not converting my saving account to NRO. Now i want to know, can i transfer this amount to NRE account? Can i need Form 15CB/ 15CA for that. Please guide.
Yes you can transfer. Please check with your bank to understand the procedures. I think it may not be required but the bank would insist on the same. Thanks.
Dear Sir, I am an NRI for 30 years. I have funds about RS 20 lacs matured from PPF account and is now deposited in NRO account. I think these funds are non-taxable in India. I want to convert into NRE account. As per new regulations, I can do it by filling form 15CA part D only. Please clarify, as bank is asking for form 15CA part C. Your suggestions in this regard will be appreciated
Thanks
Yes, but if bank does not agree, please have your CA to issue form 15CB with no taxable income and submit form 15CA part C. Thanks.
Hello Jigar,
A very timely and useful blog.
The banks are still insisting on the Form 15CB even for remittances under Rs 500,000 and for the specified purposes. That defeats the entire purpose of the new regulation.
Maybe someone will take this up with the Ministry of Finance.
Thanks
Raman
My Bank A issued me a letter stating that my original source of fund of Rs.50Lakh was from from NRE A/c transfer to my NRO A/c. Based on the letter from Bank A, I transferred Rs.50Lakh from Bank A to Bank B NRO A/c. And subsequently my Bank B transferred 50lakh from NRO A/c to NRE A/c in F.Y.2013. I did not file any Form 15CA Part C with CA cert in Form 15CB. Since I want to ensure that it is regularized to avoid issues with IT Authority – is it possible for me to file the above 15CA Part C and 15CB forms now for transaction exectuted in F.Y. 2013? And is it compulsory to file above forms or not?
It is not required for you as the money is already in your NRE account. Thanks.
Hi Jigar
I am resident & I want to transfer indian private limited company shares to non resident.
whether in that case I need to file Form 15CB? if yes what do I mentioned in that.
As money is coming in from an NRI, 15CB is not required. Only when you pay to NRI, 15CB may be required. Thanks.
I am a citizen of India. I went abroad for employment 0n 15-03-2010 and returned on
06-april-2016. Am I eligible to RNRO status under second clause of not staying for more than 729 days in india in last 7 previous years? My stay in India is as following:
2009-2010 365
2010-2011 49
2011-2012 64
2012-2013 59
2013-2014 67
2014-2015 78
2015-2016 41
Total 723
Yes. Your status would be RNOR for 2016-17. However, you would be ordinary resident for 2017-18. Thanks.
My relative who is nri & settled in UK,he has taken loan agnst property in India.Now he wants to transfer this fund from nro a/c to nre a/c,what process need to be followed?
He can’t as the loan amount is not allowed to be transferred out of India. Thanks.
Hello Jigar,
Hope you are doing well.
I have sold a property in India that I had purchased when I was a resident. I am now an NRI holding Indian passport and looking to remit the sale proceeds back to UK. The funds are in the NRO a/c in my name.
1) Do I have to pay tax in the UK, even if I bought this as a resident Indian?
2) I have been made aware that I need to submit forms 15CB & 15CA inorder to transfer the money. Is there any benefit of remitting from an NRO a/c to a foreign country bank a/c vs. transferring from NRO to NRE and then remitting to a foreign country bank a/c?
Thanks.
1. Yes, as I think the UK taxes your global income of her residents.
2. Transferring to NRE has the same meaning of transferring to foreign country as funds in NRE are considered repatriable funds. I would recommend submitting 15CB / 15CA and transferring to NRE account and invest from NRE account. Let me know if you need any help. Thanks.
Thanks Jigar for your response.
1) The ultimate aim is to remit the money to the UK as I intend to buy a property here in UK. Once the forms 15CA/CB are filled in, the money whether in NRO or NRE a/c shouldn’t make a difference when it comes to sending it to the UK, right?
2) Also, a capital loss has been incurred after applying the indexed cost of purchase and relevant expenses. Form 15CB asks whether taxes has been paid. I am under the impression that since there is a loss, no tax should be applicable here and the entire sale proceeds can be remitted/repatriated to the UK. Is my understanding correct? If yes, what are the steps to ensure this?
Thanks.
1. Yes, after submitting 15CB/15CA, you would be able to remit the funds to UK.
2. Yes, however, your CA needs to calculate and certify the same in 15CB. Thanks.
Amazingly wide, deep and clear information for NRIs/ PIOs/ OCIs. Very useful.
Thanks.
Sir,
Is there any requirement of 15CA and 15CB for payment made for the purpose of Tution Fees in Abroad??
The tuition fees in any education institution does not require 15CB/15CA as the nature of payment is included in the specified list. Thanks.
Mr. Patel, I’ve been trying to reach out to you thru phone and emails. Can you pls respond. What’s the best way to contact you..
Thank you. We have responded through email. Thanks.
Dear Sir,
I am an NRI. I got a notice from IT. Information summary says: PAYMENT TO NRI – TDS RETURN SECTION 195.
I made a payment (20 lacs)from mY NRO A/C to my friend’s NRO A/c.
I made anothor payment (21 lacs) on the same day from my NRE A/C. to his NRE A/C.
No. TDS was deducted. Both transfers done in FY 2013-14.
The payment is for : For a property deal with another resident peroson. That means there is no connection between fund transfers and property deal.
How do i explain to IT DEPT about these transfers. What is the nature of payment? How do i complete the filing of ITR. Is these transfers are taxable as per Section 195?
I am very much worried about this. If it is taxable, i have no way to get back this money from my friend.
I am very much grateful to your valuable reply, please.
best regards,
davis
1. The question is to determine the payment to your friend as gift, loan or income. If gift, as your friend is not a close relative, he needs to include the gift amount as his income. If as a loan, it needs to be repaid as per FEMA laws. If income, your friend need to report the funds as income. I am not sure about any other nature of transfer.
2. As the money eventually went to the resident person for property deal, there is connection. Please note that FEMA/RBI does not allow benami trnasaction when the beneficial owner and legal owners are different.
3. I am not able to fully understand the notice or the transaction. So may not be able to help you more. Please contact your CA. Thanks.
My son an NRI living in NZ has an NRO account with an Indian bank in Pune I am his father and the mandatee He wishes that the balance in this account is remitted to his own account in an NZ bank for his maintenance and saving Amount is of the order of INR Ten Lakhs As per your flow chart it would appear that Form 15CA CB are not required but the bank insists on it They also say I cannot sign the forms for remittance as as mandatee I need your clarification whether i) I can sign the forms as mandatee transferring this sum to his account in NZ ii) whether Form 15CA CB is required or not No other FE remittance has been done or intended this year
1. It is bank’s responsibility to make sure that the tax, if any, on the remittance has been paid. As the bank would not know or does not want to take responsibility for whether tax has been paid, they would ask for 15CB/15CA. You may want to convince them of the tax paid and that it is for family maintenance and savings, which is included in the specified list, not requiring 15CB/15CA. However, if the bank person insist on 15CB/15CA, you would have to provide the same.
2. Allowing mandate holder to sign for remittance is an internal bank procedure and I won’t be able to comment on the same.
3. If you have balance in your account, you may be able to transfer 10L from your savings bank as a gift to your son’s account in NZ easily. However, there can not be a circular transaction i.e. your son gifting money to you and you again sending the gift to your son. Thanks.
Thank you Jigar for your prompt response This account till April 16 had my mother as Principal holder and my son as second holder My mother died in April 16 at age 94 and my son was made principal holder and the account converted to an NRO account as he is NRI The entire proceeds in this account were my mothers accumulated pension and interest from FD which were all coming to less than Rs 5 Lacs per annum She being over 80 it was not taxable and so no tax was paid Both mother and son have PAN cards Being inheritance for my son now from my mother the balance in this account should not be tax liable (?) Under these circumstances since no tax was liable for my mother or now for my son (?) and hence not paid how do I tackle this issue of furnishing Form 15CA and CB for the money to be remitted out from this account to my sons account in NZ Thanks for your advice
As your son has received inheritance, the money is not taxable. Please try to convince the bank to remit without 15CB/15CA. However, if the bank does not agree, please have your CA issue the 15CB and file 15CA to remit the funds. Thanks.
Der Jigar I am sorry to bother you again I am going thru the process of forms 15 CA and CB resp Question Can I sign form 15CA Part D as remitter even if the money is being transmitted from the NRO account of my son ( I am the mandatee) My son is the beneficiary of this amount in his account in NZ Amount as mentioned earlier is for family maintenance and savings
Please contact your bank and understand the procedures and requirements as the bank would ultimately remit the funds. Thanks.
Dear Jigar Patel,
My friend is Uk national was employed in India for few months . He received salary in INR and TDS certifcate. Now he shifted back to UK and he want to transfer his balance money laying in Indian Banks. He approached the Bank , they insisted him to bring the Accountant certificate.
The question here is
What certificate it will be. Is certificate should be in online form submission or hard copy issuing by accountant.
is it need to file with income tax dept.
Thanks
Kadir Bappa
The bank would need the CA certificate in form 15CB and online filing of form 15CA to remit the funds. Both 15CB and 15CA need to be submitted online to the Income Tax department and a copy to be given to the bank to process the remittance. Contact your CA. He would know how to file both forms. Thanks.
Hi,
I’m a resident of india.
I have sold a house in india in Oct 2015, paid capital gains and have received Assessment order for last 2 years.
The proceeds are available in a domestic savings a/c.
Now, I’m planning for higher education in USA for Fall 2017 and will become an NRI.
Can the proceeds available in this resident savings a/c be converted to NRE a/c?
Is the facility to transfer from NRO to NRE a/c at the discretion of the banks?
I see Citibank india does NOT permit to transfer from NRO to NRE.
Only after you leave India, you would be considered an NRI. As an NRI, you would convert/ designate your account as NRO and then would transfer the funds from NRO to NRE account. All banks permit the transfer provided they are satisfied with the documents and forms and genuineness of the transfer. Thanks.
Hi Jigar,
I am an Canada based NRI and invested in HDFC Mutual fund on repatriable basis using my ICICI Bank NRE account and gave same NRE account details for direct deposit of redemption amounts. Now I would like to redeem and checked with ICICI Bank if they accept Indian rupee redemtion proceeds to my NRE account? Bank is saying directly deposit of MF redemtion will not be accepted in NRE account and I have to deposit redemtion only in NRO account. I invested in HDFC Mutual Fund using NRE funds assuming it will be hassle free to repatriate when I redeem and funds can be directly deposited to NRE account (That is how all leading Mutual Funds advertise for NRIs). Can you help me and reconfirm if redemtion amount cannot be deposited to NRE account even for Mutual fund investements done on repatriable basis using NRE funds? and please let me know the procedure for transferring repatriable mutual fund redemption amount from NRO to NRE account.(Like should I use CA for forms .. etc )
Thanks in advance
If you invested using NRE account, any redemption would also be credited in NRE account. Thanks.
Dear Jigar,
I have a query about NRO a/c retention. I am an OCI holding foreign citizenship. After passing away of my father last year, I have been staying in India to look after my mother, alternating the stay with my brother who is also a foreign citizen – he stays for 3 months and I stay for 9 months in the year. My family is still in the foreign country where I am maintaining household. As my stay is exceeding 183 days, do I need to change my NRO a/c to resident account? I feel according to FEMA my stay is temporary so I could continue maintaining NRO a/c. While I am in India, I would want to dispose of my property in India and repatriate the money, that’s why my interest in keeping the NRO a/c. Please provide your opinion. Thanks.
1. Yes, you may continue maintaining NRO account. However, you would be Indian resident for tax purpose. And, if your status is Ordinary Resident, your foreign income would also be taxable in India. Thanks.
Dear Jigar Patel,
My name is Kiran Kumar. I’m living in Germany since 2012. I need to transfer the amount from NRO to NRE account. I’ve kept my all earnings (salary, children benefits money) in mine and wife NRO accounts. Now I need to transfer this amount to NRE account.
Please let me know the procedure to transfer the amount from my NRO account to NRE account.
Thanks in advance for your valuable time spent in this regard.
Regards
Kiran Kumar
You would need a CA certificate in form 15CB and need to file form 15CA to transfer the funds. Please contact your bank. Thanks.
Thank you Jigar for such a helpful blog. My friend is an NRI earning income in Qatar and he used to transfer the salary income therefrom to his NRO account as he didi not have an NRE account at that point of time. As per the DTAA between India and Qatar, the salary income generated in Qatar is taxable in that country only. Now, he wishes to transfer an amount lower than Rs.5 lacs from NRO to NRE account. So my first question is whether such a transfer from NRO account to NRE account is taxable in India? Again assuming that it is not taxable, according to Rule 37BB, the same should fall under PART D and not PART A and CA certificate in Form 15CB is not required. However the Bank is insisting on the same. Can you please suggest a solution?
Please contact the bank. If you can convince the bank for transfer of funds to NRE without 15CB/15CA or just Part A or Part D, fine. If not, you would need to provide the 15CB and Form 15CA Part C. Thanks.
Respected Sir,
You seem to have resolved a lot of queries here. I have also a similar query.
My sister is abroad with her husband. She bought house with foreign loan there. (Quatar).
Now, she changed her job and new employer could not extend her visa. So she has to come back to india immediately. Her loan is outstanding, so she can not leave that country also.
Hence, Her parents are trying to send money by way of Gift (in form 15ca and 15cb) to her foreign account so that she can repay her loan and come back to india.
Whether – personal gift heading is correct ? and I am filing both 15CA and 15CB. Is there any harm if Form 15CB is filed when not needed.
Gift by parents to daughter is allowed and 15Cb/15CA may not be required. Please contact the bank for detailed procedures. Thanks.
Dear Mr Jigar Patel
Me and my son have joint property registered in our name. I am managing the property in India while my son is a NRI. The rent on the property is received by me and the same is accounted by me and Income tax is paid by me on the rental income. However, my son provided additional amenities, at the request of the tenant, to the property(flat) on hiring basis for which he has been receiving Rs.20k per month as hiring charges. As this is the only income for him India, it is falling within the IT exemption limit, he has not been paying any tax in India on this income. This amount is accumulated in his NRO account for the last 6 years. The amount lying in his NRO account is Rs.15 lacs. Can he now transfer this from NRO account to NRE account without Form 15CA&15CB?
Shall appreciate your clarification.
The question is who paid for the property. If your son paid for the property, it is his income and not yours. Also, any rent paid to NRI is subject to TDS @ 30.9%. So while, even if the rent is 240,000, TDS would apply. If TDS is properly deducted, he may remit the funds. Please contact your CA for guidance. Thanks.
Dear sir.
I ma nri residing in paris and have nro account in indian bank.
Now from nro i have to transfer total of 50 lakh to nre account .
My issue is that i have to make this transfer in break up of 10 lakh every month.
Can i make a single 15Ca & 15CB form of Rs 50 lakhs having proposed date of 6 months and on the basis of it can i make transfer of Rs 10 lakhs every month.?
or
I have to make each time 15ca form to make the transaction.
For each transfer, 15CA/15CB ay be required. I would advise to transfer all at once to save time and cost. Thanks.
Hi Jigar,
For a hotel booking payment , I used net banking to transfer funds from my NRE account to the hotel’s account.But later I had to cancel the booking and hotel is supposed to return the money. Can the hotel , located in India , transfer the funds (originating from cancelled booking) back to the same NRE account from which it was payed?
Please advise.Thanks.
While you can try, I doubt it as it is not specifically allowed. Any refund from investment out of NRE account is allowed. However, you may try to convince the bank to accept the refund in your NRE account. Thanks.
Sir,
Iam a NRI and I want to transfer my sale proceeds from sale of fixed asset to my NRE accout. I have filed the Income tax return considering capital gain from sale of fixed asset. So which part of form 15CA to be filed and Whether Form 15CB is required .
Please give suggetion.
Thanks in Advance.
As the nature of transfer is taxable i.e. sale of asset resulting in capital gain, you would need a CA certificate in form 15CB and file Form 15CA Part C. Please contact your CA or us for the same. Thanks.
Hello,
Am an NRI, recently sold a commercial property in India and the sale proceeds are now deposited in my NRO a/c.
The said property was bought with funds from my NRE a/c.
Now, I want to move the sale proceeds from my NRO a/c to NRE a/c
Since the original funds were from my NRE a/c, do I need to pay any taxes for moving them back to where they came from?
Many thanks for your valuable input.
Regards,
Vinod
The tax is only on the income. So if the sale of property resulted in capital gain, you would need to pay tax on the capital gain and then you would be able to transfer the funds. I would think as the nature is taxable (sale of property resulting in capital gain), 15CB/15CA would be required. Thanks.
I have a private limited company in India. i want to pay a person in Germany professional fee from this company. He is a resident of Germany and has provided services to my company from Germany. As he is a non-resident, his income is taxable only in Germany and not in India. Can I furnish Form 15CA & CB mentioning 0% TDS as per Income tax and DTAA?
The TDS would depend on the nature of the service provided. The professional fees may be termed as “Fees for Technical services” and TDS would apply. The rate of TDS would depend on whether the person has a PAN and/or TRC – Tax Residency certificate. Thanks.
Hi,
I am a NRI living in US (been here for 4.5 years). From last 3 years I am sending money to my own SBI saving bank account in India. Now I want that money back in US. Its the money which I earned in my job in US and already paid tax on that in US. I dont have any income on that money in India.
I already filed an application to convert my saving to NRO account.
Questions:
1. Can I transfer that money back to US?
2. Will that money be taxed in India?
3. Will that money be taxed in US after I bring it back to US?
4. Do I need to fill in 15CA and 15CB to bring back that money?
5. Please help me with the process to do the same.
Thanks
Total amount is ~$30000
1. Yes
2-3. No. Tax is only on income e.g. interest. If you pay tax on interest, you would be okay.
4. I would think so as the bank would need to be certain about payment of tax, if any.
5. Please contact your bank and CA. Thanks.
sir,
i have a query regarding Part A of 15CA
in part A of 15 CA , remittance is chargeable to tax under the provision of the income tax act 1961 and remittance or the aggregate of such remittance , as the case may be , does not exceed 500000 during the FY,
i have query, that limit of 500000 is applicable for only one party or agrregate of all payment to all party in FY
I would think it is per party. However, better to be conservative and also consider the limit per nature as well. Thanks.
Hi, i live in canada for last 5 yrs. I would like to buy a house here. My parents and my wife’s parents helped us with some amount and i deposited the same in my NRO account. After a few weeks, Indian govt implemented demonitisation and meanwhile i was in contact with my bank in india to remit the amount from my NRO ac to Canadian ac. Bank treated me like i am a suspect. I gave them the source. They asked me to submit form 15ca and 15cb. What are they? What will happen if i fill ip those forms. Does it worth.?
1. Yes, for transfer from NRO to your Canada account, you would need 15CB/15CA. 15CB/15Ca just certifies that income tax, if any, have been paid on the amount.
2. If your parents had given gift from their savings account to your Canadian account, you may be able to do it without 15CB/15CA. Similarly, your in-laws may gift money to your wife (not you). Please contact your bank as you need to follow the bank procedures,which may vary. Thanks.
I’m an NRI – I bought an apartment in India using my NRE fund in 2007. Now I sold that apartment and the funds are in my NRO account. I have paid capital gain around Rs. 1.6 lakhs – my auditor has prepared the work sheet and came up with this amount. Now my bank is asking me to furnish 15ca and 15cb to repatriate. My auditor is saying it is not necessary to file 15ca/15cb as this comes under the new “Specified List” as “family maintenance”. But, my bank is not accepting this argument. Please let me know if I need to file 15ca and get the certificate from my auditor (15cb).
Thanks,
Bala.
Yes, 15CB/15CA would be required as the source of funds in taxable in nature i.e. sale of property resulting in capital gains income. Thanks.
Dear Sir,
In the above situation if the property sale resulted in loss due to indexation then is it required to obtain 15 cb.
Or both 15 ca and 15 cb are required
As sale of property is a taxable transaction that could result in a capital gain, I would think the bank would insist on the CA certificate in form 15CB to confirm that there is a loss and no tax is payable. Thanks.
We have recently sold a flat and due to indexation no capital gain has arisen. We have managed to obtain a tax exemption certificate but the bank insists on 15CA/CB forms to be submitted by a CA. This will allow a transfer from NRO to NRI accounts. Is this the correct procedure? Would part D be required (no tax variant?)
Please advise on how we can register for e filing as a NRI – the online form asks for an India located address and Indian mobile number for account activation? Is there a way around this for NRI applicants who hold PAN cards? ie use UK address/mobile number?
Thank you
1. If you have received the tax exemption certificate, you need to submit Form 15CA part B. No need for CA certificate. The IT department has given the certificate that no TDS to be deducted so no need for CA certificate for the same.
2. For NRIs, India located address and mobile numbers are not required. You can register with just your email. Thanks.
Thank you very much indeed
Dear Jigar Patel,
Thank you for this very useful blog.
The list of exemptions for forms 15 CA/CB is for remittance from NRO to international account. Can they also be applied to NRO to NRE account transfers?
Also, can a bank ignore the list of exemptions and still request 15 CA/CB?
Regards.
1. Technicaly, payment to NRE is at par with remittance outside India. However, I dont think all natures of payments in the specified list apply for payment to NRE account. If you read the specified list, you would notice that almost all of the payments needs to be remitted outside Inda.
2. RBI has authorized banks to ensure that any payment outside India comply with the income tax and FEMA laws. Every bank has its own rules, regulation and internal requirement to ensure the same. While you can try to convince the bank (if it is a genuine request, they do entertain), if bank is not convinced, you would need to provide the documents/certificate as per their requirement.
3. As different banks have different requirement and procedures, you may also change the bank and select a more lenient bank for the transfer of funds. Thanks.
Dear Sir,
Please reply me, my client is Resident Individual want purchase a house property in Pattaya in Thailand, whether TDS is applicable or not at the time of remittance of foreign currency
I don’t think so as the TDS @ 1% as per Income Tax Act is applicable for payment to an India resident. As your client is purchasing a property in Thailand from a Thai national in Thailand, he would need to follow Thai laws. For remitting funds out of India for investment abroad, he would need to follow FEMA laws. Only when he sells the property at a gain, he would follow Indian Income tax laws. However, if he is buying a property from an Indian resident, he would deduct TDS @ 1%. Thanks.
Dear Jigar,
First of all, great job for putting up the info in the blog. I have a small query, hope you can help.
a) I’m a UK based NRI. I have to help my relative with some funds from my NRO account( Money from NRE moved to NRO and then to relatives account)
b) After some time, my relative will return the money I lent into my NRO account. Question is how I can get that money back into my NRE account from my NRO. I checked with my bank, they said forms 15CA/15CB will be needed and proof of source of funds have to be shown. Relative will be selling his agriculture land to return the money, do you the proof of sale of his land can cause any issue in the process (15CA/CB or showing it as source of funds??).
Any help you can render, will be great.
Regards,
Amit
1. I would recommend that you transfer the funds directly from your NRE account.
2. You may give loan on a repatriable or non-repatriable basis as per FEMA. The conditions relating to both needs to be complied with. The repatriable loan can be directly credited into NRE account (provided cheque paid from NRE account).
3. You may not give a loan to relative for any investment or buying agricultural land. your source of funds is key. Contact your bank and your CA. Thanks.
Hi Mr. Naresh,
I am an NRI living in Australia for past 3 years. I am about to buy a property here and hence getting fund from India. I have NRO and NRE account in India. How can I remit fund from India to Australia. What are the steps to follow. Do I need to pay tax?
Any help on this matter will be highly appreciated.
Kind Regards,
Siddhartha
1. You will be able to transfer your funds in NRE account to Australia very easily. For transfer from NRO to Australia, you would need a CA certificate in form 15CB and file form 15CA. Please contact your bank and CA for the same.
2. Tax is only on income and there is no tax on the transfer of amount. However, if funds are in NRO or NRE, the tax on the funds needs to be paid or TDS deducted. Thanks.
Hello Sir,
Thank you for the reply. Further to my question, I am expecting fund from my LIC insurance which will be deposited to the NRO account. Can you please provide me with a contact at Kolkata who does the CA certificate? Will you be able to do the certificate for me by any chance?
Thanks,
Siddhartha
We do not have any association with a CA in Kolkata. Any CA would be able to issue the CA certificate and I am sure there are many CAs and you will be able to find one nearby your place in Kolkata. Thanks.
Dear Mr. Jigar,
Thanks for the great work you are doing for the NRI community. I have very simple question and would like to have your view on that.
I am an NRI working in middle east for last 20 years and i have a regular salary plus i do part time works.
1- When i transfer money online from my bank account in Gulf to my NRE account in India. is their any tax liability on the remittances by me ?
2 – If a 3rd party (part time employers) from Gulf transfer funds to my NRE account directly. Is their a tax liability on me?
Your help will be much appreciated.
1. No, I don’t think so as the money is transferred after receipt i.e. it is a remittance and not considered as income received in India.
2. If a part time employers transfer funds directly, they may not have shown/reported this payment as consulting services or employment charges and you may not have reported the same as income or receipt. As the money is received in India (not remitted or transferred from your account), it may be taxable in India. Thanks.
Dear Mr. Jigar,
I sold my property in Bangalore in July 2016. I obtained exemption certificate for TDS on capital gains. TDS was done by buyers bank using the challan number for exemption. I invested the capital gains into NH bonds. Now I want to repatriate the amount I have via the sale in my NRO account. To issue form 15 for repatriation my CA is insisting that I make my buyer file e-TDS otherwise he will not do it. My CA has info about TDS and I have provided the challan copy as well as SBI receipt of TDS done by buyer. Is the e-TDS required for 15?
As it is the rules are pretty unclear for non TAX/CA person to navigate and this CA seems like putting undue burden.
Any advice is helpful. Thanks in advance
Regards
— Jeegar
As you have obtained a certificate from the Income Tax department, you do not need a CA certificate in form 15CB. You would only need to file Form 15CA part B, which you can file by logging into your account. If you don’t know how to do it or don’t want to file on your own, you may also instruct the CA to file on your behalf as you would be responsible and not your CA. Thanks.
Dear Mr. Jigar Patel,
I am an NRI living in Canada. My grandmother died a couple of years ago and left me Rs. 15 lakhs which my mother wishes to gift to me in India. Can I repatriate this in dollars to Canada? What is the procedure for doing so? Can I deposit the cheque from my mother in my Indian bank account and get it exchanged to dollars to carry back to Canada with me? Or should I open an NRO account and repatriate the money in smaller amounts over the next few years?
Thanks so much
Anita Rau
Your mother can gift the money from her bank account directly to your bank account in Canada. Ask your mother to visit her bank and tell them that she wants to gift 15L to her son under LRS – Liberalized Remittance Scheme. It is allowed and CA certificate in 15CB and filing of 15CA may not be required.
Depositing the money by opening NRO account and transferring from NRO to NRE and then to Canada or from NRO to Canadian account may require the CA certificate and other procedures which may unnecessarily complicate/delay the matter. Thanks.
Dear Mr. Patel,
Thanks very much for this information. Much appreciated.
Anita
Dear Mr.Jigar
I am a merchant navy captain and have been filing zero ITR .Recently One of my insurance policy (ulip) got matured and I received a Sum of abt 55 lakh in my NRO account.I had made all the premium payment from my Nre savings account for the mentioned policy.Can I transfer the money received in my NRO account back to my Nre saving account ?If yes .please guide me with the procedure and also please let me know if I will be liable for any taxation while doing so.
Thanks
Capt Ranjan
If the amount received is on the maturity of ULIP and sum assured was atlest 5 or 10 times your annual premium (based on when you took the policy), I think the maturity amount would not be taxable. However, please contact your insurance agent or CA for the same. Please contact your bank to understand the procedures for transferring funds from NRO to NRE account. I think form 15CA would be required. However as bank would be transferring the funds, you would need to provide documents and complete procedures as per their requirements. If CA certificate in form 15CB is required, please contact your CA for the same. Thanks.
Dear Sir,
I have never seen such an informative blog anywhere. Thanks for your services.
Ours is a partnership firm. An NRI wishes to lend Rs.50 Lakhs from the balance lying in his NRO account. Repayment to be after 2 years by crediting his NRO account.Though , generally such loans are not repatriable , my question is :Whether the principal repaid can be repatriated by transferring to NRE account within the overall $1 million limit after submitting CA Certificates??. Or to rephrase it , Is the $1 million limit applicable only for sale proceeds of properties etc , or does it include loans returned by non-relative??Thanks in advance. Guru
The loan would be on a non-repatriable basis so the terms and conditions relating to term, rate of interest (no more than 2% from prime lending rate), use of funds (not for re-lending, investments or RE or agriculture) etc. need to be complied with. Being non-repatriable basis, the repayment can not be credited to NRE account but can only be credited to NRO account. From NRO, while the remittance requirement is out of sale of assets or personal savings, banks do allow transfer. Please check with your bank, your NRI friend’s bank and CA. Thanks.
DEAR SIR
WE issue seaman books of various foreign countries who has appointed there distributors in INDIA.
When we send payment to them in INDIAN account they take 15% tax.
they say if we transfer money to there DUBAI or CYPRUS account then they wont take TAX.
but when i went to bank they said to bring CA CB form .
when i went to ca he said i have tot pay 15% tax.
can you tell me how can i transfer money without paying tax.
thanks
RAJNISH
IMPERIAL MARINE AND EDUCATION SERVICES PVT. LTD
1. If I understand correctly, I think you are purchasing from Indian distributors and making payment in India. I think you would pay applicable VAT or GST taxes. Service tax is 15% and if what you are buying is chargeable under service tax, you would pay service tax of 15%. I am not sure what other 15% tax they take.
2. Assuming this is regarding service tax, as you have utilized the service in India, service tax would be applicable. So, your CA is right that you would need to pay service tax on the reverse charge mechanism. If it is another tax, I am not sure.
3. If I have not understood correctly, please elaborate. Thanks.
Dear jigar,
I’m uk resident from last 10 yrs, I’m getting rent in my Indian regular bank after I went back to India for 6 months and now returned back to uk. However never changed my regular account to NRO. I also got two properties which I’m intending to sell and remit money to uk. under double taxation system will I be benefitted and save on tax. Please show me the path to take correct actions.
I suggest you change your bank account to NRO first. When you have identified the buyer, please contact us and we will guide you at each step during the selling of properties, transferring money to UK, paying tax, if any, and filing tax return in India. Thanks.
Dear mr Jigar Patel
Is it mandatory for NRI to get Adhar card
No. Aadhar Card is not required for NRIs. It is not mandatory even for residents. I don’t have an Aadhar card. Thanks.
Sir,
I have a query wrt payment mode. If we pay by paypal or some similar sites any payment out of India, which is a very nominal amount, do we require to file Form 15CA. If yes, the how to write BSR code.
Further, do we need to provide form 15CA and 15CB,in case tds not applicable, but equlisation levy is applicable?
The TDS, 15CB/15CA and equalization levy would depend on the nature of payment. Also, I don’t think you can pay out of India through Paypal. I do have a Paypal account but it is used for accepting payment. Also, paypal is not authorized to keep money and the amount is converted and deposited to my bank account on a daily basis. For remiting funds out of India, please contact your bank and your CA. Thanks.
NRI customer of nationalised has been asked to produce CA certificate fr to. Of fund from NRO TO NRE .Balance as on today in Nro account will stand transfered to nre account , the accumulated balance lying in nro account created out of maturity of various term deposits only for which tds made by bank.NRI has only interest income in India but not filed I. T return in India. Now at this juncture of transferring fund from NRO TO NRE requires CA CERTIFICATE in part D non taxable or to disclose in other part of 15 CA CB
The maturity of FD has 2 parts – Principal and interest. Taxation of both needs to be determined. I would think 15CA/15CB would be required as NRO interest is taxable. However, you may contact the bank and request to transfer without 15CB. If you can’t convince them, you may have to issue 15CB and complete 15CA Part C. Thanks.
Hi sir
My brother wants to gift me some Australian dollars through EFT From his Indian bank to my bank in Australia. Apparently bank has mentioned about a CA’s certificate. Is it mandatory to furnish such certificates for gifts through LRS? Also could you please advise me about the monitory ceiling for the LRS
Thanks
Sree
I don’t think a CA certificate would be required as it is covered under LRS and gift to brother within LRS limit of $250000 is allowed. Please contact your bank. Thanks.
Hello Jigar,
Happy new year to you.
How much approximately a CA should charge to give the certificate (15 CA, 15CB), file an ITR and calculate capital gains tax.
I know this is bit subjective but what is according to you are reasonable charges?
Please advise.
Thanks
Ganesh
It is subjective not only on the CA but also on the complications of the ITR. It could be as low as Rs. 5000 and high as 500000. It would depend on the complications of the case as well as CA. Thanks.
HI !
I recently collected some Fixed deposits left by my late grandfather , these were deposited in my NRO account recently in the HDFC bank and i would like to send these abroad to my account in the gulf as i have no use for keeping a large amount in the country and i would like to know which forms would i need to do this exactly and if it can be done without me being in the country ?
1. You would need a CA certificate in form 15CB, filing of form 15CA and complete procedures as required by HDFC bank to transfer the funds.
2. Your physical presence is not required as both 15CB/15CA are filed electronically and you can courier the documents for transfer to HDFC bank. Thanks.
Hi,
recently i took a loan from UAE and sent to my fathers savings account for buying land . but we dropped the plan because of wrong deal and my father sent me back the money to NRO account. now i want to transfer the money to my NRE account. i have the proof of loan and exchange receipts. what kind of form should i need to produce to bank for transfer. please advice. thanks a lot for this forum.
1. An NRI is not allowed to invest in others name. Also, NRI is not allowed to buy agricultural property/land.
2. While you took a loan and has papers to prove, this happened outside India and are not relevant in India.
3. The nature of transfer of money between you and your father needs to be determined, whether loan, gift or income. FEMA laws regarding the respective nature needs to be complied with.
4. I would suggest you to contact your bank and your CA and understand the procedure for transfer of funds from NRO to NRE account. Thanks.
Hi,
We are resident in US an had Mutual funds investment until now in India. The money from mutual funds are now deposited in savings account after redemption.
1) How can the money be bought to US in the most efficient way.
2) Is is better to leave money in India? what are the options?
3) Do we need to do any FBAR filing or any other in US if it is not done until now. What may be the penalties if any (amount is less than USD50000)
1. The legal way – from NRO to NRE or from NRO to your US bank account after complying with FEMA laws and completing forms/requirements
2. It is a personal decision. If you want to invest in India, you can do that. You are allowed to invest in almost all options – property, bank FD, MF, business, etc. If you need the money in USA, transfer to yoru US bank account.
3. I would think so. You need to comply with US tax and compliance requirement. If you can prove that the non-compliance was unintentional, penalty is 5% of balance; else 27.5%. This is in addition to paying tax on the income and interest. Please contact your CPA. Thanks.
Dear Jigar Sir,
Request you to kindly answer my query, I purchased equity Mutual funds from my salary savings around 4 years back. Now I have moved abroad last year. I have redeemed the funds now and proceed of around 6 lacs is deposited in my NRO a/c. Now I want to transfer this money to my NRE a/c. Since there is no long term capital gains tax on MFs and initial source was my salary which is TDS paid. What kind of forms should I provide to the bank for the transfer. Thanks.
1. While the LTCG is not taxable subject to certain conditions (STT paid, 1 yr+ holding), it is a taxable transaction resulting into a capital gain provided these conditions were not satisfied.
2. Also, Salary is a taxable transaction. While TDS is deducted, it may be more or less than your actual tax liability.
3. As both Salary and sell of MF are taxable transaction, if amount is more than 5L, I think you would need a CA certificate in form 15CB and filing of Form 15CA to transfer the funds from NRO to NRE account. Thanks.
Hello Jigar,
I am an NRI, having ordinary savings account (non NRE/NRO) in India, with few FD’s which have accrued interest over the years, also TDS 10% has been applied to these interest incomes . I was not aware of requirement to convert the account to NRO account. Is there any penalty for converting my account to NRO now ?
Can I transfer the money via cheque to my mothers account who is resident indian and then remit it to my US account via liberalized scheme ?
1. Currently, RBI is working hard to increase compliance so are not very strict about penalty. However, after sometime, they may come up with some penalty structure. So are advised to change your bank account from resident to NRO.
2. Transfering the money to mother and remiting abroad is circumventing the law and not legal. As an NRI you are allowed to remit upto $1million per year. So I would recommend you do the right way as there could be penalty on you / your mother due to giving false declaration and treating loan as gift and/or not reporting. Thanks.
Hi Jigar,
One of my client want to remit some amount in USD today based on the invoice raised in 2010. TDS is also deducted on the same at the applicable rate in 2010.
In form 15CB, amount payable in Foreign currency will be same as raised in 2010 but problem is in INR. The amount to be shown in Indian Rupees is of today’s rate or of 2010 rate?
Please guide
Thanks
1. As you are making a payment today, it needs to be at current exchange rate. Please consult your bank.
2. Also, I think this is hard to believe that it took 7 years to pay for invoice. So you better have strong reasons and paperwork. Thanks.
Hi Jigar, I am a New Zealand citizen having OCI and NRE / NRO bank accounts. As per my father’s will, I will inherit a certain amount of cash funds. I would to repatriate this amount back to New Zealand. It would be very helpful if you could pls advise the requirements and procedure. Thanks. Rajesh.
An NRI is allowed to remit the inherited funds outside India upto $1million per year. Please contact us if you have any question or need our help for the transfer. Thanks.
To sign Form 15CA and 15CB does the Chartered accountant need to hold a certificate of practice?
Yes. Thanks.
Dear Jigar,
Thank you for such a helpful blog and your services. I have a query. I am in USA now. My mother sold property in India and she kept all the amount in the bank in India. My mother wants to gift me some amount through Indian bank to USA Bank transfer(or deposit on my travel card).
1. Is the amount will be taxable in USA for me?
2. What is amount limit that she can gift to me ?
3. Does my mother need to get any certificate in India(My mother is Senior Citizen)?
Thank you very much.
1. As long as your mother has paid tax on the sale of property, she will be able to give gift of funds to you.
2. There is no gift tax in India. And, there is no gift tax on foreign gift received by US resident in USA. However, the gift needs to be reported to IRS.
3. Assuming she is an India resident, she can gift upto $250,000 per year under LRS to NRIs.
4. No CA certificate would be required. Please check with your bank and your CA. Thanks.
Hi,
I run a company (Pvt. Ltd.) which needs to make monthly / quarterly payments to a company in the US for a service they are providing to me (online – its a software on my server). The annual sum exceeding $ 10,000.
Now I also need to withhold tax as TDS. How much should this be and can the company in the US, offset this amount paid here in India, against their tax due in the US. What certificates do I need to give them for the same.
What is the best and cheapest way to handle this.
Thank you !
1. Due to DTAA between India and USA, there is no double taxation and tax paid (TDS) in India would be used as foreign tax credit in USA against US income.
2. I would think the TDS certificate would be okay. Thanks.
Hi,
I am living in South Africa and want to transfer funds from my account in India to my account in SA. The bank in India has asked me for a CA to issue 15AB and 15CB forms. in addition to the A2 form.
Would it be easier if i take the money out and deposit it in my mom’s account in India and she can then transfer it under LRS?
How would that work? Is it a long process to get the CA forms? Look forward to your reply.
Thanks.
It would depend on whether you want to comply with FEMA laws. While the process is long but it is the right way. What you propose is circumventing the FEMA laws and is not allowed. And, if bank/RBI suspects, you/your mother may have to face non-compliance actions. Thanks.
Sir,
Reading this blog, I am impressed with the competent and valuable advice at one place to so many people.
I understand I will have now solution to my very straight forward issue/query.
My relative in US wants to Invest and trade in Indian Stock market by remitting desired money by opening NRO account (Not thru NRE_PIS route). He will file IT Return in India for the income generated thru this route.
Can he transfer the amount generated intermittently when ever need arise in USA?
For this, what documents will be required to open stock trading a/c, demat a/c and NRO a/c.?
Will it be possible to get certificate or FORM 15CB as he files IT return from CA, required by bank as mentioned in this blog to transfer money from NRO to NRE?
1. NRIs are only allowed to invest in equity market in India through PIS. If done otherwise, it would be in violation of FEMA.
2. I don’t think if he has an NRO account, any bank or broker will open / allow trading other than through PIS route as even the investment in equity shares from NRO account is through NRO-PIS account.
3. I would recommend to invest through NRE-PIS and not NRO-PIS. It will help a lot for easily remitting the funds to USA. Thanks.
Thanks for reply.
NRI has no income in USA and maintenance Resident bank account to manage Indian income from various sources in India. If NRI invest this Income in equity market in India and NRI files Income Tax Return as a NRI, what is the consequences as per FEMA and IT.
As an NRI, only NRO/NRE account to be maintained and resident account to be converted to NRO account. Now, an NRI is allowed to invest in equity market without NRO-PIS. Under FEMA, an NRI can invest in equity market with certain conditions and as per IT, an NRI is required to report all his income in India and pay tax on the same. Thanks.
DEAR SIR
OUR EDUCATIONAL INSTITUTE PAID ANNUAL FEE TO CAMBRIDGE(UK) FOR SCHOOL REGISTRATION FEE. WHETHER THIS PAYMENT IS LIABLE TO TDS. CAMBRIDGE SCHOOL HAVE PAN ALSO. BUT THEY CAN PROVIDE TRC OF UK.
PLEASE ADVICE.
Please check with your CA as he would need to check the DTAA between India-UK and determine the taxation and tax rate. Thanks.
Hello. I just stumbled on your blog via google. It is impressive and I decided to write to you about my query.
I have sold my residential property in India this tax year and paid capital gains tax. I have a CA in india, who will be dealing with the Indian taxes. The property was in joint name of myself and my wife and both have PAN cards. We are British citizens with OCI Cards.I am in the process of transferring my funds in U.K. What is the capital gains tax implication of the funds. I file my U.K. tax returns online but never dealt with this type of situation. Your guidance will be highly appreciated. Thanks and Regards- Shree
1. Tax is only on Income. There is no tax on transfer from YOUR one account to YOUR another account be it NRO to NRE or India to UK.
2. As a UK resident, you need to include the capital gain in your UK tax return. If you have paid taxes in India, you would be able to claim the tax credit for taxes paid in India in your UK return based on the DTAA between UK and India. Thanks.
Hi Jigar
I am a Canadian Citizen and have an NRO and NRE account in India. I received my share from the parental property which my Mom sold in June 2015 . Money was deposited in my NRO account. I did a fixed deposit of that amount for a year ,as i had to file my Indian income tax for financial year 2016-2017 . I did file that and got the income tax clearance. My FD;s got matured and my bank has already deducted TDS on the interest accrued. Now i want to transfer the funds to my NRE account. My CA in India is asking for form 10F and TRC. My understanding is , that this is required only in case of any benefit under DTAA is taken,whether by way of lower rate of TDS or no deduction of TDS. Your help will be highly appreciated.
Regards
Rattan Chopra
Yes, 10F and TRC is only if you plan to take DTAA benefit. I don’t think it is required in your case. Please follow up with your CA. If he insists, it is likely that he may not know the laws and you may have to find another CA. Thanks.
Hi Jigar,
I am US citizen and US tax payer. I have Govt. of India pension. To transfer my pension to USA, do I need to submit CA certification? Where do I need to Pay the tax, India or USA?
Thans,
Ranjoy
1. As your source of income is in India, you need to pay tax in India first and claim the tax paid in India as credit for your US tax return.
2. Practically, as this is your current income, the bank would require a CA certificate or if the amount is less than 5L per year, you may only provide form 15CA part A.
3. I think the Government of India pension is taxed in USA only for US residents who are also a US citizen (both). Please check with your CPA about taxability. Thanks.
Hi Mr Patel,
I will be paying a capital gain tax as well as other taxes as required to be paid in India on selling my property. This will all be done through a CA and also the profit money will be hopefully transferred to NRE account from NRO account through my CA. If I want to repatriate this money to my uk account then do I still have to pay the property gain tax to UK government even though the money was originally paid via the NRE account to buy this property. Is there any taxes applicable in UK over the repatriable money. Please advise.
Thanks.
Vasu Aras
1. There is no relation between UK tax laws and repatriation.
2. If you sold a property, it would result in a capital gains tax. As the property is located in India, your primary liability to pay tax is in India. However, as you are also a resident of UK, who charges tax on global income, you are also required to report the capital gain in your UK tax return. For any tax you pay in India, you would be able to claim the foreign tax credit in your UK tax return based on the DTAA between India and UK. This has nothing to with whether money is in NRO or NRE or in India or in UK. Tax is on income and not on transfer. Thanks.
Hi
I am a OCI card holder, I made some property sales involving more than 50 Lacs. Buyer paid TDS and the TDS amount mentioned in the sales deed, buyer submitted their TDS paid challan. As you know, there is no reference of seller PAN or name in the payment challan.
Buyer auditor says, the TDS certificate (form 26AS) will be generated only at the end of every quarter, meaning, in my case, it will be some time March 31st 2017.
Question is, what is the basis for seller’s auditor to prepare form 15CB without 26AS?
Seller wants to transfer funds now.
Thanks,
Regards,
Radhakrishnan
Trust.
As the TDS is mentioned in the agreement, and challan for the same amount is paid, it is just a matter of time when it shows up in your 26AS. Also, the CA may ask for a declaration from the buyer/seller to be extra sure. However, if the CA is not ready, just wait for 2 months. Thanks.
Dear Jigar,
The resident has purchased property from non-resident and has already prepared the Sale Deed without applying for lower deduction.
Now when resident has approached CA for 15CA/15CB , can CA consider the indexed cost of acquisition and give benefit of lower deduction through his certificate in 15CB because the Act clearly says that “income chargeable to tax.”
A CA may do that on his own responsibility. In such case, I would recommend to file the tax return and then issue the CA certificate. Thanks.
Dear Sir,
Presently my daughter is a New Zealand citizen. Much before she went abroad, I had gifted her a small flat in Thane. Later, we sold it and we invested the proceeds(after cutting of TDS by the buyer) in capital gains bond. Before investing in the bonds, NRO a/c was opened and the cheque was deposited in it, and the investment in bonds was done from her NRO a/c. Now, this year the bonds will be maturing and the maturity amount will be deposited in her NRO account. Now she wants to take the money with her to New Zealand. We are filing her tax returns, every year, but her interest income from bond and another NRO FD, falls within limits, and she gets nearly full refund of the TDS. What is the procedure she will have to adopt to transfer moneys from NRO to NRE and then transfer the same to her account abroad?
Thanks in advance for your guidance.
As the money in NRO is a taxable in nature – (capital gain, interest), a CA certificate in form 15CB and filing of form 15CA would be required. As you have been filing tax returns regularly, you have nothing to worry. Please contact your bank and your CA for understanding the procedure for transfer of funds from your daughter’s NRO account to her account in New Zealand. Thanks.
Dear Jigar
Your posts are very helpful. May be you can help me in my personal situation.
I am a UK citizen (parents are Indian), have been in UK since 2014. In 2016, I generated some income in India through investment in a company (received fixed income, not in shares or bonds) and through sale of a property.
My question, as per DTAA rule, how much tax will I pay in India. I know the rate is 15% but correct me if I as wrong.
Secondly, what is the procedure to make this happen. Do I have to obtain a Tax Residency Certificate in UK. Who do I forward it to? The bank or my CA in India. SBI has been deducting tax on the interest received at 30%. What do I do to avail the benefit of DTAA.
You advice on the matter will be very helpful.
Many thanks
Sorry would like to correct, I have been in UK since 2004.
1. Yes, you would need TRC to claim DTAA benefit. The 15% DTAA rate is correct for interest income.
2. Even if you provide the TRC to the bank, it may not deducte TDS @15% for any previous year/quarters. However, you may provide the same to your CA, who will be able to use the same while filing your tax return and get you the benefit of 15% tax rate.
3. I would recommend you to transfer the funds from NRO to NRE and then invest in NRE FD as the income on NRE account is exempt from tax in India. It will solve your problem relating to TRC, lower deduction and refund. Please contact your CA and your bank to understand the procedures. Thanks.
Hi Jigar,
I am living in US as a permanent resident.
I want to bring my money to US from India. This money I had earned while I was in India. Tax has already been paid on this amount in India.
1. Do I need to fill the 15CA and 15CB forms?
2. My bank says that they don’t need the 15CA 15CB forms and they can simply transfer the money to my account in US. Is this correct?
Many thanks,
Rahul
1. As the source of money was taxable (salary, savings, interest, etc.), you would need 15CB/15CA. Only a CA would certify that the taxes, if any, have been paid.
2. If your bank is ready to do it, please do so. But, I doubt it. Good luck. Thanks.
Sir,
My wife and I are US citizens, we sold a property in 2010 that was purchased in 1997. The proceedings of the sale(long term capital gains) was used to purchase Indian Government Tax free bond. After the Bond matured it was invested in a Fixed deposit in NRO account. We did not file an ITR in 2010 as the long time capital gains was used to purchase Tax free bond, but have since filed ITR for the 2014 and 2015. Can we repatriate the money from the home sale that is in the NRO-Fixed deposit? What forms do we need to submit to repatriate. Thanks.
1. You were required to file the tax return in 2010. You are not the IT officer and has no authority to determine the taxability. Only the IT department has authrority to ensure the tax was properly filed.
2. It appears that you started filing tax return because you wanted the refund of TDS on NRO FD interest. So, I would think that you would have invested in the bonds as a residents. You did not allow the TDS to be deducted on the interest income of capital gains tax bonds, which is also a violation.
3. Now, you want to remit all the money outside India. For which, I think a CA certificate in form 15CB and filing of form 15CA would be required in addition to the documents/form required by the bank. Please contact your bank and the CA. Thanks.
Dear Sir,
Request to comment on the applicability of 15 CB if a company in India provides dividend to its foreign stakeholder (company)
Any payment to an NRI that is taxable in nature and is more than 5L would require 15CB. If dividend is after tax paid money or is less than 5L, 15CB may not be required. However, please check with your bank and CA. Thanks.
Sir,
I opened an NRO account with ICICI bank to credit maturity proceeds from their Public Provident Fund account and the Post Office Recurring Deposit.
Since these funds are not taxable what documentation should I provide to the bank to have them remit the funds?
We are in the USA so will this need to be reported to IRS in my daughter’s tax return?
1. While PPF is not taxable, PO recurring deposit may be taxable. Also, the document requirement would depend on the bank and to determine the taxability, they still would ask for the CA certificate.
2. If this is your daughter’s money, yes, she needs to report the same to IRS. She may also need to report the interest income in her 1040. While PPF interest is not taxable as per Indian taxlaws, it would be taxable as per US tax laws. Thanks.
Hi Jagar,
I m now resident of canada.before i moved from India in 2009 I received my ist installment of my sold plot and that much portion of the plot equivlent to money received was handed over to buyer . I paid full capital gain on the money i received.The deal did not go through full because of non receipt of environmental clearance.
I kept the money in FD in bank .I have been paying IT on the interest on FD.
I want to move this money from this NRO to canada which is 35 lakhs.what should I do & what actions should i take.thanks
KS
1. I am not sure of the transaction. If the deal did not go through, why would you have money in your account. Aren’t you supposed to return the amount to the respective counterparty?
2. That being said, any income, on which tax has been paid in India, can be remitted abroad after CA certificate in form 15CB and filing of form 15CA. Thanks.
Hello Mr.Patel
I need to make payment to my Vendor in Denmark for software import (through download link, no physical import). I have few questions.
1.) I understand based on above suggestions, I need to deduct TDS under royalty head (DTAA). How much TDS needs to be deducted as firm is from Denmark?
2.) Can vendor from Denmark claim that TDS? They do not have any PAN in India and are not interested to file return in India. Can they do it while filling the return in Denmark?
3.) While deducting the TDS, which one to follow withholding tax treaty or TDS as per IT act as rates of deduction are different in both cases.
4.) I read it somewhere that from assessment year 2016-17 royalty and fee for technical services by a foreign company shall be taxed at 10% if agreement is made after 21st March, 1976 irrespective of any country. So for any country TDS of 10% needs to be deducted (if that payment comes under taxation). Is that true?
Would appreciate your expert advice. Thanks.
Regards
Hemant
1. I do not remember the DTAA provisions between India and Denmark. Please contact your CA for the same as he needs to issue the certificate.
2. They may be able to claim the refund as tax paid in foreign country based on the TDS information provided by you.
3-4. You would need to take the higher of IT, DTAA or 20% (as no PAN). If no PAN, but has TRC- Tax Residency Certificate, DTAA benefit may be applicable subject to the provision of IT Act. Please contact your CA. Thanks.
Hi,
I have been NRI (USA) for last 7 years. I learned about converting to NRI accounts 3 years back but didn’t do that as I thought it’s just a formal change to charge lower interest rate on FD accounts. Recently, I talked my HFC bank for Term Life insurance and realized that I must change accounts to NRE/NRO.
In past 6-7, I have remitted dollars to my Indian bank FD accounts(saving) and to my mother’s account (family maintenance). I don’t have any other property or income in India.Based on total FD deposits, I think my interest income is 4-5 lakh and my mother’s about 2 lakhs. I have paid taxes in US as well as India on my income. Now I would like to open NRE and NRO accounts. My preference is to save TDS on NRO interest. Would TDS rate be 15% due to DTAA?Should I transfer money into NRE to save on taxes or should I claim refund on NRO interest as I can use 80c PPF deduction that lower the total income?
In general, how can I avail of your services as I am in US and how much would be the fee to correct the situation I am in?
1. There has NEVER been any difference in interest rate between resident and NRO account. Also, there has not been any difference between NRO and NRE FD interest since last 6 years (Dec 2011). So your logic or reasoning for not converting account to NRO is incorrect.
2. Yes, you can open NRO and NRE account in India.
3. Since March 2012, I have been assisting NRIs in transferring money from NRO to NRE account to save taxes on FD interest.
4. The DTAA rate of TDS of 15% will apply only if you give TRC – Tax residency Certificate from IRS. Else, TDS @ 30.9% will be deducted. I would recommend that you transfer the funds.
5. Please contact us if you have any question using the email and phone number in the “Contact Us” section if you want to avail our service. Thanks.
In case of Transfer of funds from HSBC NRO account to HSBC savings account in USA. which currecny will come under foreign currency INR or USD???Please reply ASAP
As money is transferred to US account in USD, the foreign currency would be USD. Thanks.
Do you know CA who can do tax calculations and give form 15 CB and 15 CA
I am sure if you ask any practicing CA, he does it. We also give 15CB certificate and file 15CA on our client’s behalf. Thanks.
Dear Jigar Ji,
I recently became a NRI. I had a Resident saving account in India, which has no transactions during last 4-5 years, other than credit of interest or re-investment of FDs. The balance is more than Rs.50 lacs. I have now re-designated this account as NRO.
I want to transfer this amount to NRE account. Do I need 15CA/15CB or not. I guess this transfer could be considered as “S1301” or “S1307” as Purpose, under the “Specified list”
If I need these forms, in that case how many years I need to go back to prove the source of funds. Last 5 years there has been no credit to this account.
Thanks
Naresh Kumar
I want to transfer this amount to NRE.
I would think 15CB/15CA would be required as bank would not know whether you have paid any tax on the 50L of balance. Please contact your bank and your CA. You would need to show the proof. You may have the income tax returns to prove that you have been showing the income – interest or any other and paying tax. Thanks.
Dear Mr.Jigal Patel,
I have some queries regarding transferring my funds from NRO a/c to a NRE a/c.
I am working in Oman and I have been transferring money to my NRO account in Chennai for the last 5-6 years as a saving. (This NRO account is a joint account with my wife).
Recently I opened a NRE account in another Bank in my wife’s name and want to transfer some of the money to her NRE account so that I can put that in fixed deposits without paying tax for the interest.
It would help if you could kindly let me know the procedure to do so. Though you have mentioned that in some of your posts, it’s not clear to me.
Thanks
Thiru
I would recommend opening NRE account in your name and transfer the funds. In India, you and your wife are two separate persons for tax purpose and any transfer/gift of funds from husband to wife is considered as Husband’s money and is also included in husband’s income tax return. This will also complicate your income tax compliance as the bank will say that interest paid to wife whereas you will have to include the income in your income tax return. Please keep the funds separate. In future, she may transfer the funds from Oman to her NRE account from her savings in Oman. Thanks.
Can an NRI transfer to a foreign country a loan of Rs 2 Crores, availed from a local bank for buisiness purposes?
An NRI may not transfer the loan taken in India abroad in a personal name. However, a business owned by NRI may invest outside India of the loan amount in normal course of business in compliance with FEMA laws relating to investment in business/JV/acquisitions abroad. Thanks.
Dear sir
I have an nro sb a/c i want to invest in share market so please tell me whether at the time of sale of share whether i have to submit 15ca/cb to my broker for transfering fund in my nro sb a/c
NRI is allowed to invest in equity market through NRO account so you would not need a CA certificate in form 15CB or filing of 15CA for crediting NRO account. These forms are required only when you transfer the funds from NRO to NRE or remit funds from NRO to your resident country. Thanks.
I have a client who resides in India and is shifting to Australia within a week. He has salary income, Shares, ULIP, LIC Policies, MF’s which will be redeemed to his residence savings account. Which part of form 15CA should be submitted to the bank? Is the remittance tax free as all the investments are well within the exemption criteria. Salary Income is taxable on which TDS has already been deducted by the company.
He is a currently a resident and restrictions on remittance for a resident would apply. If tax has been paid, he can remit the funds. The purpose of the funds would determine the requirement of 15CB/15CA. If the purpose is not in specified list, I would think 15CB and part C of 15CA would be required as remittance is being made of funds that were subject to income tax. Thanks.
I am an NRI working in Dubai (been here for the past 12 years). My PPF A/c matures in Dec 2017 and I should get around INR 15 lakhs. I understand being an NRI, I am not eligible to get a block extension on the PPF.
My query is …
1) How do I go about transferring this amount to my NRE so that I do not have to pay any tax on the amount or on the interest in future?
2) If I have to deposit this into my NRO will I get taxed on the full amount that is INR 15 lakhs OR on the interest the amount would earn in the NRO?
3)What options do I have,
Please Advise …
1. The amount will only be credited to NRO account. You may transfer the funds to NRE after CA certificate and filing of form 15CA.
2. Only interest would be taxable.
3. You have many options to invest in India to earn tax free return. Please contact us if you have any question or need our guidance. Thanks.
I have a SBI NRE, NRO & a PPF Account. The PPF Account was prior to my being an NRI (based in Dubai). Please advise how can I transfer the maturing PPF Amount to my NRE Account.
The money will first go to NRO account and then after 15CB/15CA, you would be able to transfer the funds from NRO to NRE account. Thanks.
Sri Patel ..
Can you help me with advise on following .
My daughter is a UK citizen with OIC card . She has NRE / NRO accounts in India . no tax accrued or paid in India till now . She has a Pan number .
She acquired a residential property in 2010. and sold in April 2017 . value less than 50 lacs ( Approx 27 lacs ) the money for purchase was brought from overseas to her NRE account . Sales proceeds are being credited to NRO account . Capital gain is nil in India after indexation . Due to Rupee depreciation the money in Dollar terms for repatriation is lower than what was brought in .
Our questions sir ..
1. Seller has not deducted TDS or applied for nil / reduced tax
2. Can we ask a CA ( Chartered accountant ) to file 15 CA , 15 CB forms showing no taxes due and request AD ( Bank ) to repatriate the proceeds now.
3. Can we subsequently file the tax return for FY 17-18 ( AY 18-19 ) after Apr 2018 .
4. If anything patently wrong in this assumption please advise .
5. What is her tax liability at my daughters end in UK . she pays tax and files returns in UK .
Regards
Madhavan
1. Seller apply for nil deduction of TDS. If not, Buyer deducts the TDS.
2. If you your CA is ready to do the same.
3. The IT return can only be filed after year end i.e. after March 2018.
4. Yes, TDS is not deducted / nil certification is not obtained. The 50L limit is for residents. 50L limit is for residents and there is no limit for NRI for TDS.
5. If there is no gain in GBP, there is no tax liability in UK as well. Thanks.
Dear Patel Sir,
Let me start with saying that your blog is the most informative blog on the issue throughout the entire domain of internet. Your efforts and dedication in answering all the queries, in a timely, patient, respectful and helping manner is something which is rare to see in professionals these days.
That being said, I am a little selfish myself and I seek your help/advise on my matter which is exactly same to the query that you have answered. The facts are as follows:
I am an NRI. I purchased a property for 55 Lacs in 2008, using funds lying in my NRE account (Funds were transferred from NRE to NRO and from NRO payments were made to the builder and housing finance company).
I have sold the property for 80 lacs in December. The buyer has deducted only 1% TDS and remitted 79.20 Lacs in my NRO account. No lower deduction certificate was obtained by anyone. After indexation no capital gains have accrued to me and entire 80 Lacs is tax free, infact in my tax return I will apply for refund of 80,000 TDS.
My bank says i Need to give 15 CA and 15 CB for repatriation of 79.20 from NRO to NRE. My queries are as follows:
1. Do I need to myself deduct the remaining TDS of 19.6% and deposit with the government, before repatirating the funds from NRO to NRE.
2. Is part C or Part D to be filled of Form 15 CA. (I am under the impression that it should be part D, since the amount of 79.20 will not attract any tax in India).
3. What “purpose code” is to be filled in Form A-2 and form 15 CA. (P.S.: Bank is saying that in form A-2 they will simply fill NRO to NRE trasnfer and will not specify any particular code. I don’t know if that is right).
Look forward to your help.
Regards,
Kushal Gupta
1. No. You may not deduct any TDS or pay tax if the sale of property results in long term capital loss.
2. A CA certificate in Form 15CB and filing of form 15CA Part C would be required as it relates to taxable transaction. While it may result in a loss and no tax may be due, you may not decide on your own. Only CA is allowed to make that decision. Please contact your CA and bank.
3. I would include both transfer and sale of property i.e. NRO to NRE transfer of funds on sale of property. Thanks.
Hi there,
I am an Australia citizen. In the year 2014 I sold my property in India and invested that money into REC capital Gain Bonds for three years which got matured now and the capital invested plus interest has been deposited back into my NRO account, also they had been paying yearly interest into my account which I made FD of in my NRO account itself. I made two FD’s in last three years from the interest earned from REC Bonds into NRO account.
How can I transfer money from my NRO account into NRE account as I have to pay 30% tax on the interest earned in NRO account.
I also want to transfer my current 2 FD’s from NRO to NRE account.
Please advise.
Thanks
You can do it. You would need 15CB and 15CA for transferring money from NRO to NRE account. Please contact your bank and your CA. Thanks.
Request your advice on the following query:
I have entered into an agreement to purchase a ready to move in residential flat in one of the apartment developed by a reputed builder. The purchase consideration is in excess of Rs. 50 lacs lacs to be paid partly with help from a home loan. The 1st buyer is a NRI settled in USA for more than 12-13 years.He had purchased the flat from builder, at the time of launch of the project in October 2006 (FY 2006-07). He had entered into a sale and construction agreement with builder in Oct 2006. The flat was completed by the builder but possession was not taken by the NRI person and registration of the flat in his name has not been done so far. I have made the payment towards my own contribution, from my own sources, without any deduction of TDS, into the NRO a/c of the NRI person. The balance consideration will also be paid into the same NRO a/c of the NRI person. The NRI has assigned the flat in my favor as he has already paid the full value of the flat already to the builder. The sale deed will be executed between the builder and myself where the NRI person (through his relative who holds GPA issued in his favor by the NRI) would sign as a confirming witness. Myself and the NRI person have entered into an assignment agreement, assigning all his rights in that flat to me against payment of the consideration agreed. Now my query is : 1) Is TDS required to be deducted, even when there is no capital gains in the hand of the NRI in this transaction ? In fact there is a substantial capital loss for him in this transaction. 2) Since technically the NRI has not taken the possession of the flat and it is not registered in his name, Is the Builder not a seller in this case and I am the buyer, but I have not made any payment to the builder 3) If TDS is applicable , what is the TDS rate, 1% as applicable for property transaction above Rs. 50 lacs or TDS u/s 195 as applicable for payments to NRI 4) As the payment has been made into the NRO a/c, which is not be freely repartriable by the NRI, is the TDS still required to be deducted 5) If the TDS is required to be deducted, considering that there is no capital gains involved (capital loss here) can the NRI apply for a NIL Tax deduction certificate from Income Tax Department , based on which I am not required to deduct TDS? If yes, how much time will be required to get the NIL Tax deduction certificate from Income Tax Department and where and how to apply for the same. 6) What are the consequences of non-deduction of TDS, if TDS is applicable in this case, for me (buyer) and the NRI 7) If transaction is deemed to be between builder and me and the original consideration is less than 50 lacs (paid by the NRI), is the 1% TDS still applicable (in case sec 195 is not relevant here)
1. Any payment to NRI, TDS @ 20.6% is required to be deducted. You are not authorized to make an evaluation of the gain/tax. You may ask the NRI to obtain a Nil TDS certificate from the IT officer.
2. While an NRI is not the owner of property, he is the owner of rights to acquire the property, which is also an asset.
3. TDS u/s. 195 will apply.
4. Only purchase of property by NRI from NRE account may be transferred directly to NRE. Otherwise all the money will be credited to NRO account only.
5. NRI is required to get the certificate so you ask him. Else, tell him that you would deduct TDS @ 20.6%.
6. It is your responsibility to deduct tax. you could be held liable for the TDS amount.
7. Original consideration is not important. The consideration that you are paying now will determine the TDS rate. Thanks.
Hi Mr.Jigar Patel,
Thanks for your illustrative description about 15CA&15CB.
I seek your kind input in the following scenario so that we can plan correctly.
1)I and spouse are OCIs and have Joint NRE and NRO accounts. I am primary.
2)Have a joint immovable property and thinking of selling and plan to repatriate/remit the money.
3)Source of original purchase funds is finds from NRE account and direct inward remittance.
4)Regarding sale proceeds we have following questions please.(After capital gains deduction)
a)Guess ,The sale proceeds are to be equally split (since joint property) and ask buyer to credit to NRO account with separate remittances individually for same account. How about the original amount funded for purchase by $ and NRE Rs.
How about treatment of that source amount.
b)As it is joint property sale and have joint account, for repatriation/outward remittance from NRO account whether both have to submit individual 15CA&15CB a single one by primary account holder(I)?(As capital gains have to be paid individually and equally?).
Thanks.
1. In India, there is no married filing jointly concept and returns are filed separately by husband and wife. Also, the account is treated as owned by the primary account holder. I would recommend you to have a separate bank accounts for you and your wife. While accounts can be joined, you will be primary (1st holder) in one account and your wife can be primary – 1st holder on another account.
2. The sale proceeds of the property bought from NRE/remitted funds can be credited back to NRE account. However, you would need to convince the bank for the same. The gain to be credited to NRO account and is allowed to be remitted abroad or transferred to NRE account after payment of taxes.
3. If ownership is of two persons and money received by two persons, the money remitted would also by two persons so you would need 2 15CB/15CA for transfer. Thanks.
Hi,
I am an NRI . I am selling two properties in India . The properties were purchased in 2007 (1.25 crore in total ) and now fetching me 1.45 crore after 10 years in 2017. I know there is no tax liable after discounting for the indexation. The money from the sale proceeding will come to my NRO account. How do I transfer this money to my UK account. I purchased these two flats with my NRE/UK money. Your help will be much appreciated
You are allowed to remit the funds provided you have paid tax, if any. If no tax, I would recommend that you file the tax return atleast. Also, as you are an NRI, I would recommend you to get lower or no deduction certificate from the IT officer to avoid TDS @ 23.7% (20%+surcharge+cess). Thanks.
Hi Jignesh,
I am in Hong Kong since last one year. I have been transferring my funds to my saving account in India and to my NRO account since last few months. It took me few months to understand that it is better to keep funds in NRE to save tax as FD and other investment done through NRE doesn’t incur TDS.
I also understood that I can trasfer my funds from NRO to NRE however it requires form 15CA/CB. Is there anything I need to worry about? How do I get this form?
Thanks for your help.
Please contact your bank and your CA to transfer funds from NRO to NRE account. There is nothing to worry. Thanks.
Dear Jigar,
I am a NRI and purchased a property through funds remitted in my NRE account. The property was then sold and as per the requirements for NRIs, a lower TDS withholding Certificate (197) was obtained from the IT Dept. and as per the Certificate the TDS was deposited by the Buyer. The sale proceeds (minus the TDS) were deposited in the NRO account.
1. To transfer the sale proceeds from NRO to NRE account (given the above), what forms would I need to file (Only 15CA or both CA and CB)?
2. What Part of 15CA would I need to fill (A,B,D) given the situation?
3. If a 15CB is required, what are your fees for filing the same?
Thank you!
As mentioned in the flowchart, only form 15CA part B would be required to be submitted. Thanks.
Sir,
When filing of form 15-CA/CB is required? i.e. whether at the time of payment by Indian buyer to NRI or at the time of transferring money from NRO to NRE account? And by whom? By buyer at the time of making payment or by the NRI at the time of transfer of funds to NRO to NRE account.
Technically, 15CB/15CA is required at the time of payment by Indian Buyer to NRI. However, practically, while TDS may be deducted at the time of payment by buyer 15CB/15CA are not issued. Only at the time of transfer from NRO to NRE or from NRO to abroad, 15CB/15CA are submitted. If 15CB/15CA are used for NRO to NRE transfer, it is a remittance from seller (NRI) from his one account to his another account. Thanks.
Posing this question for my parents.
They recently acquired US citizenship and are based in the US. They get a pension in India that is deposited to their SBI bank account.
a) Can they get get their pension repatriated to the US on a monthly basis?
b) How would they do that?
c) Can it be done while they are in the US or do they have to go in person to India? (They are too old to travel close to 85)
1. Yes. However, a CA certificate may be required.
2. Please contact your bank and CA.
3. I don’t think physical/personal presence is required. Thanks.
hi
I live in UK and hold NRO account in India. from icici bank UK I transfered my close friend 10 lakhs rupees and my sister around 5lakhs since 2012 I have the bank transfer statement. now they want to give it back to my nro account so that I can repay my loan in UK. so that 15 lakh rupee can I do repartition to my UK account. if so please guide me the procedure and purpose code of payment.
This is considered as a loan on non-repatriable basis by NRI to resident. Please check with the bank for the procedures to transfer the funds. You may have to contact your CA for any forms required. Thanks.
Hi Jigar
We are making some International payments from Company owned Credit card. Do we need to file Form 15CA also for the payments ?
It would depend on the nature of payment. Thanks.
Sir,
If 15CA/CB is applicable and payment is made through Credit Card, What to fill in Bank Details in Form 15CA/15CB when you pay to NRI from Credit Card.
Also, if the payments are made by Paypal, etc. What to fill in Bank Details in Form 15CA/115CB?
I don’t think you can make payment through Paypal. Paypal is only allowed for inward remittance in India. You would need to pay through bank and 15CB/15CA would be required. Thanks.
Dear Jigar,
Dear Jigar,
Greetings,
Excellent answers to the queries of affected individuals.
I am an NRI resding in Hong Kong.
I am encroaching upon your precious time as I feel, ( from the replies to the typical issues faced by the NRIs when selling the house properties ) that you have the best expertise to clarify the issues especially relating to the repatriation of sale proceeds of the house property sold by NRIs in India.
Request is to please guide me on my case below:
1. I had bought an apartment in NOIDA in March 2008 ( sale deed completed in August 2008 )
2. I was advised that since the Indexed cost of purchase for the flat in NOIDA had gone up to 210%, there will not be any Capital Gain levied on the difference amount of purchase price and the sale price ( purchase px in 2008 INR 67.38 lacs and the expected sale price is INR 87 – 90 lacs ( much less than the indexed cost of purchase, if I take 210% as the correct indexed purchase price that I got from one of the acquaintances living in NOIDA )
Clarifications requested:
1. How much TDS the buyer need to deduct? ( the rate of TDS )
2. If there is no Capital Gain tax, is payment of TDS is compulsory
3. In case I need to pay TDS at the appropriate rate, Can I claim it back in subsequent year via the submission of an Income Tax Return.
4. What forms are needed that the Bank in Delhi where I maintain an NRO account will ask me to submit to them
5. As you can see above the amount of repatriation is hardly USD 135 K.
Finally are you based in Delhi? Or if in other city, do you have any branch office in Delhi?
1. If you think that selling of property results into a loss, you may contact your IT officer (Assessing officer) and get a nil deduction or lower deduction certificate.
2. Without certificate, TDS rate related to long term capital gain on sale of property i.e. 20.6% will apply.
3. If TDS is deducted at a rate higher than the tax, you may file the return and claim the refund.
4. For remittance outside India, I think you would need purchase deed, sale deed, request letter, Form A2, 15CB and 15CA.
5. We are based in Ahmedabad and serving clients from all across India and around the world. We do not have any office in Delhi. Thanks.
I moved out of India in 2016 and I am now NRI . I purchased the property in May-2009 for 32 lacs and then sold it in Sep-2016 for 47lacs .. after indexation my LTCG is less then the government value..
I am not sure whether I have to pay capital gains tax and secondly .. How can i transfer the amount out of India..
Whether you are liable to pay tax or not, you would need to file tax return. Also, the buyer was required to deduct TDS as you were an NRI. I would recommend filing tax return. Thanks.
Hello Sir,
We have to make a rental payment to NRI in his NRO account in India. Whether rule 37BB will be applicable or not as it says “payment to Non resident”
For any payment to NRI, rule 37BB will apply so if you are making a rental payment to an NRI, you would need to deduct TDS @ 30.9%. Thanks.
Dear Sir,
Taxes deducted (TDS ) in India under Form 15 CA / CB but can we reclaimed this Tax amount in Nepal ?
What is the remedy to avoid the TDS in India ?
Please advice
1. You may claim the TDS in your Indian tax return. I am not sure about the Nepal tax laws.
2. If you are an NRI, you may not have any remedy except to file Indian tax return and claim the refund. Thanks.
Hi
I am an NRI residing in Sultanate of Oman. Sometime in May 2011, I had liquidated my NRI FD – Rs 25 lakhs with a Bank in India and converted the proceeds to NRO FD with same bank as the interest rate on NRO FD was higher than NRI FD. Bank had deducted TDS on NRO FD at prevailing rates and is even doing so today. I would again like to convert the NRO FD to NRE FD as the interest rates are same and TDS is being unnecessarily deducted at 30% plus rate on same.
Please let me know the procedure for doing the same as on date. What forms I need to submit to my bank to do the same.
Thanks and regards.
Yasmin Avari
You may not tranfer NRO FD into NRE FD. You would need to first close FD and credit NRO savings account and then transfer to NRE savings account and then invest in NRE FD. You would need a CA certificate in form 15CB and file form 15CA to transfer funds from NRO to NRE account. Thanks.
Hi,
I am in USA, received inheritance from the PPF account (non-taxable) also have received money from the state government due to the land been acquired(non-taxable). Bank insisting 15CA/CB to transfer it to NRE, but as per latest 15CB can be filled if the sum is non-taxable. How do I put up case where I can provide documents and CA certificate(not in 15CA/CB) confirming sum is non-taxable in India?
You need to convince the bank that the money is not taxable. However, if the bank insists, you would need to contact your CA for the same. Thanks.
Mr.Patel,
I’m a US citizen having OCI. I have a fully paid apartment in India. I would like to avail NRI home loan against this property from ICICI or any other Indian Bank which would be deposited into my NRO account. I would like to move this loan amount from NRO to NRE account and repatriate to US $ for some purpose here in US.
Steps:
——
• Have NRO and NRE account with ICICI Bank
• Avail NRI home loan against the property and the amount would be deposited into NRO Account.
• Request bank to move the money from NRO to NRE account and repatriate to US $ account.
• ICICI Bank will know the source of fund for NRO account (from loan against property) and will have all supporting documentation
Is there a need to go through CA to complete 15CA and 15 CB forms to complete the formalities as there is no sale of property or any capital gain?
Is there any other formalities that I need to be aware to complete the whole process?
Thanks in advance.
Regards,
Kiran
Loan amount is not allowed to be remitted outside India. I don’t think ICICI will remit the loan funds outside India. Please check with the bank. Thanks.
Dear Shri Jigar,
I am proprietor of a small company which is into business of trading – spare parts for heavy construction equipment. We also import parts from UK & UAE value of which do not exceed INR one lakh. But now, we have few large orders as much as for INR 5Lacs. Like to know which / what kind of remittance are chargeable to tax, Forms 15CA/15CB to be submitted and TDS rate applicable. Do we need to specify DTAA in 15CA or 15CB?
Would appreciate your kind advice at the earliest. Thanking you.
15CB/15CA are not required to import payments. Please contact your bank. Thanks.
I am a gulf resident since 1992 and hold nro and nre accounts in 2 banks i have various nro FD totalling to 50L which i need to transfer to Gulf for purchasing a property for myself
How much can I transfer and how , i have been regular in filing my tax returns
You are allowed to transfer upto $1 million per year per person. So you are allowed to transfer all the funds. Please contact your bank and CA to complete the procedural formalities to transfer the funds. Thanks.
Hi Jigar,
What all documents are required in this case. Can you please elaborate. I have sold my property in 2016 in India when I was resident. I moved to Australia in Feb 2017. Now I want to buy a property here. How can I get that money out of India. I am here in Aus for last 8 months. When I moved out I was unable to convert my SB account to NRO/NRE. Can I transfer the money in this case? Please guide
1. You would need to prove the source of funds in buying the property, cost of property, sale price of property i.e. purchase deed, sale deed, bank statement, TDS certificate, tax paid information etc.
2. 1. You would first need to convert your account to NRO. You may open NRE account with the same bank and transfer the funds from NRO to NRE account and then transfer to AUS. You may also transfer the funds from NRO to AUS. Thanks.
Mr.Patel, your assistance & replies to queries is indeed amazing, and at the outset I wish to thank you for your kind generous gesture.
My Query –
Mr.G is a resident of Canada since the past 10 years. His mother has gifted him a house in Mumbai 4 years ago. The house was purchased in the year 1995 at Rs.3.5 lakhs. This is a small apartment and the title is not yet transferred in his name. The mother is a cancer patient, a senior citizen and is currently living with her son Mr. G.
They now want to sell the house and they are fetching about Rs.35 lakhs for the same house now.
In the last 22 years they would have spent about Rs.10 lakhs on the house for repairs & renovation.
They wish to transfer the funds accrued from the sale to Canada to the son’s a/c.
My question is –
1. What is the tax liability towards the house sale income?
2. What are the procedures to be followed fro transferring the funds to Canada?
3. From the funds which would be transferred Mr.G intends to buy a house in Canada. What could be the tax benefits/ tax liabilities there?
I thank you in advance for your valued response.
1. Please check whether the gift from money to son is genuine i.e. documented and stamp duty paid. However, if title is not transferred, the gift is not genuine and stamp duty not paid. In such case, the title and ownership is with the mother.
2. Money on sale of property is allowed to be remitted abroad. If property is owned by mother, she will sell, pay tax and transfer to Canada and give gift to son. If owned by son, he will sell, pay tax and transfer funds to Canada.
3. Tax liability would depend on the cost of acquisition and sale amount. Indexation will be allowed. However, the cost of repair and maintenance would not be added to the cost of acquisition.
4. For claiming deduction, the new house property needs to be situated in India. So no deduction for acquiring property outside India. Thanks.
Dear
A friend of mine is NRI and he is having residential property here in India. He wants to avail Loan against Prop. and would like to transfer this fund to USA. TO repay his property Loan ( which is with higher cost) there in USA.
Can he do so? what process he need to follow?
With regards
Naresh
Loan amount is not allowed to be repatriated outside India. Thanks.
Hello,
I’ve savings of 45 Lakhs lying in my NRO account in India. This fund was previously in a State Bank of Mysore (SBM) resident account. After becoming NRI, I moved all funds from my SBM resident account to ICICI NRO account.
When submitting form 15 CA and CB, I hope my bank statements from both SBM and ICICI are enough to show that the funds are from my savings in India?
Thanks,
Ramesh
The question may come how you got the funds in SBM and whether you have paid tax on the same or not. Please contact your CA as he will be issuing the certificate. Thanks.
Hi Jigar
Me and my wife both are NRIs staying in Dubai. two days back i transferred Money to my Wife’s ICICI NRO account by mistake instead of NRE account. Big mistake i made i must say. How can i correct this? I am need to have this money in her NRE for investments in India and in future if required i should be able to repatriate without restrictions the principal and gains back for my daughters education abroad. Since i have the proof of remittance receipt of the Money exchange, can my wife can transfer the money from NRO to NRE with a request letter to ICICI bank without form 15 CA /15 CB as the income is non taxable, by quoting from rule 37 BB the the nature of payment as non taxable. Is it possible? also which will be correct item no. from the 33 nos. of nature of payments listed in the table of 33 BB? Kindly advise. Bit anxious. thanks in advance.
Please check with the ICICI bank. If the bank allows transfer from NRO to NRE, good. If not, you will have to submit the form 15CB/15CA to transfer funds from NRO to NRE account. Thanks.
Dear Jigarji,
I purchased a house in India from my Indian funds in 2012 when I was resident in India I rented that house and I am receiving rental income and my tenant used to deposit the amount in my resident account latter in 2015 I migrated to U.S and I have changed my resident account into NRO account. In this case, what is the implication of tax. Has my tenant to deduct tax at a source? And if yes, what is the rate of tax.
Thanks !
Your Tenant needs to deduct TDS @ 30.9% on the rent payment to you as your status has changed to NRI from 2015. Changing status to NRI is just a formality and is not a trigger. Your responsibility is that you inform your tenant of your residential status and mention the same in your rent agreement. I would also suggest to have a clause of TDS applicability and give responsibility on tenant in the rent agreement. Thanks.
Hi Jigar. Isn’t the TDS rule on rental income applicable post a minimal rental income is surpassed?
Only for residents. For NRIs, there is no minimum threshold and TDS @ 30.9% from Rs. 1, Thanks.
Hi, I transferred fund from my NRO to NRE savings account by following all the steps as per requirement. Post which we opened NRE fixed deposit with same bank. after 3 months , by using online banking instead of some other deposit by error prematurely withdrawn one of the NRE deposit and it got credited to my NRO savings account. Now bank is asking me to follow exact same process to put the money back to NRE. Do I need to resubmit all documents and follow exact same step for getting amount back to NRE account ? The documents are require to submit for every transaction from NRO to NRE or we can submit one time ? In my case I had to submit form 15 C part D originally and we had to mention the amount we need to transfer which can not be used by bank again to transfer and avoid same document process ?
Thanks for your time to look into this.
If you can’t convince the bank to transfer to NRE, you will have to complete the procedures. Please confirm with bank whether they would be okay with 15CA Part D or would need both 15CB and 15CA part C. Thanks.
for transferring funds from NRO FDR to NRE FDR , in 15CA which part I have to fill ?
What is a procedure and 15CB is a must if I am filing return of Incoem for last 5 years and amount source is a sale of flat in 2012. In that year , I have shown LTCG and paid the tax @20% . Now I want to convert this NRO FDR into NRE FDR , what is a procedre ?
You may not be able to directly convert your NRO FD into NRE FD. The procedure would be to first withdraw FD and credit NRO account, get CA certificate in form 15CB, file form 15CA, transfer the funds to NRE with other documents to your bank and create new NRE FD. You may lose interest as interest rate is decreasing and also have to pay penalty to break an FD. Thanks.
Dear jigarji,
My mother is U.S nation and holding OCI card and she is residing in India for long time hence she is residence in India. Is it mandatory for her to provide Aathaar card to her bank account.
Thanks
Sangita
Yes, She is an Indian resident would need Aadhar. Aadhar card is for residents. It has nothing to do with citizenship, which is related to immigration and visa. Thanks.
Good day!!!
Jigar Patel
I want know about I am NRI ,I transfer money to my brother NRI ac to buy property 3 years ago now this property my brother sale ,now I want transfer this amount in my nro ac its possible that money he received saving ac
Thanks®ards
Vijay
1. NRIs are not allowed to invest in other’s name except that they are also a joint holder. This could be termed as a Benami Transaction. Please check my blog on Benami transaction at http://nareshco.com/blog/?p=1444.
2. The money transferred to your brother three years ago was a gift and not a loan as the loan received from NRI is not allowed to be used for investment.
3. An Indian resident is allowed to gift to his NRI brother upto $250,000 (about 1.6 cr) per year of his after tax money under LRS. However, it would depend on whether you want or not want to do such transaction. Thanks.
I have been in US since May 2014 and was sending money to my resident a/c in India.
In Jan 2017 I have changed my resident a/c to NRO a/c and also opened NRE a/c.
Bank is deducting tax at 30% on interest since then.
INow I have to transfer 90% of funds from NRO to NRE , do i have to fill 15CA & 15CB?
I have all proof of source of funds and paid all taxes on that amount in US.
As your account was a resident account, you may have credited other funds except from USA. Also, you may not have paid all the tax due and may still owe some tax if you have not filed your tax return as the TDS on resident FD interest is only 10% whereas you can be in a higher tax bracket (20% or 30%). As your source of income is India, your primary responsibility of paying tax is in India. Once tax is paid in India, you may claim the tax paid in India as foreign tax credit in USA under DTAA (Double Tax Avoidance Agreement). As a result a CA certificate in Form 15CB would be required. Thanks.
Hello,
I am an Indian NRI who has been living in the Netherlands for 10 years now. I have NRO and NRE accounts in India with ICICI. I have an NRO account jointly with my father who is an Indian Resident. I have a ULIP that has been running for 9 years now and is worth about 20 lakhs. Since this is a ULIP over 5 years old, there should be no tax liability on it. I also have investments in stocks and mutual funds that were invested into in 2005-2007 when I was still a resident. These total to about Rs 15 lakhs.
I wish to transfer these to my NRE account but not repatriate the money to Netherlands.
I wish to re-invest this money into the Indian stock market via Mutual Funds and repatriate them a few years down the line for the education of my child.
Can I get this money transferred from my joint NRO account to NRE account?
Does my ‘requirement’ fall in the ‘specified list’?
Do I need to prove the source of funds? I have not filed tax returns for the years I have been an NRI, do I need to do that as well?
Do you offer the services for filing the paperwork required for this? If yes, let me know, via a private message or email, how much this would cost.
An NRI can hold shares only under PIS of RBI so you would need to open/transfer shares to NRO-PIS account. As the investments were bought from local (Indian) funds, sale proceeds can only be credited to NRO account. Once in NRO account, you may transfer to NRE account after submitting CA certificate in form 15CB and filing form 15CA. Please contact your bank, broker and CA. If you don’t have any, please contact us as we provide such services. Thanks.
Mr Jigar Ji: Greetings.
I and my son are NRI at Dubai. Both have NRO and NRE A/c in HDFC jointly. I have property in my name jointly with my wife and my son has property in his name in Bangaluru. I want to sell my property. I purchased it for 70 Lakhs in 2013 and now it is being sold 1.1 Crore in 2017. I want to repatriate this entire amount to buy a house at Dubai in my SON’s NAME, as he wants to buy a house at Dubai by taking loan to meet the total cost of the house. CAN I REPATRIATE ENTIRE AMOUNT TO DUBAI to help my SON, JOINT FAMILY, to meet his needs. Please advise me so I shall seek your assistance for transfer f the funds to Dubai.
You may not be able to remit entire amount and you would need to pay the tax on the capital gain on sale of the property. However, you are allowed to remit entire AFTER TAX amount to Dubai. Once money is in Dubai, you may help your son in buying a property. Thanks.
Dear Sir,
I am a NRI for the past 8 years. I hold both NRO and NRE accounts in india. I file my returns every year. currently, I live in Europe while occasionally I travel to USA. I have now an adopted mother (83 years) who wants to help me with buying a property in india. I do have a bank account in USA.
Which is better?
Transfer the money to my NRE account from my adopted mother’s account? or
Transfer the money to my NRE account from my US account after having received the money from my adopted mother?
The amount could come to 2 to 3 crores.
Thanks in advance
I would assume that 83 year old mother adopted you recently and is official i.e. documented and reported in your/ her IDs. If not, you need to be careful as it could be seen as foreign investor (assuming your adopted mother is not NRI or OCI) buying property in India and is against the FEMA laws. You also need to be careful about the gift tax laws of your country of residence in Europe, USA (if US bank account is involved) as well as India. As amount is high, without any details, I may not be able to guide you. Please elaborate or contact us. Thanks.
I live in Canada but I am sure the procedure for remitting funds from India must be same. Here is my situation:
I draw pension in India in a NRO account. I would like to bring those funds to my Canadian bank monthly / twice a year . I understand that Form to use is A2. Could you please advise.
Regards,
Jagtar Cheema
You would also need a CA certificate in form 15CB/15CA to transfer the funds as the pension is taxable in nature. Please contact your CA and bank. Thanks.
I found your replies down to the point. My son and Daughter in law are US citizens from April 2017. In April 2016 my Daughter in laws uncle expired and he left approx Rs. 25 lacs to her. It has been deposited in an NRO account. Now that they are US citizens, they would like to have the entire money in their Bank of America account. Essentially it is legacy money in India which is in the Beneficiary’s NRO account to be transferred to Beneficiary’s US Bank account.
While money can be transferred to USA, 15CB/15CA would be required. Please contact your CA for the same. Let us know if you need our help in issue of CA certificate and filing for 15CA for transferring the funds. Thanks.
Hello Sir,
I am in USA on H1B visa from last few years, i have transferred 20,000 USD to india from my US bank account to INDIA accounts as i was planning to buy a house in INDIA, but we have dropped this decision and now planning to get this money back to USA accounts as i am thinking of buying house in USA.
My bank in INDIA (ICICI) asking the 15CA and 15CB documents to be produced, Can you let me know the process to obtain this documents from Charted accountant?
These are the funds that i earned in USA and transferred from USA to INDIA ( I have the Xoom and Bank statements showing the credits are from USA).
Thanks,
Sreekanth
If you had transferred the money to your NRE account, 15CB/15CA would not be required. As bank is asking for the forms, I would think you had transferred to your NRO account. Please try to convince your bank to transfer the funds without 15CB/15CA. If bank does not listen, you will have no option but to provide the forms. Please contact your CA. If you don’t have, please let us know and we will help you for the same. Thanks.
Sir , I need your help on this.
I have transferred few funds to Citibank ( still it is Suvidha account) and other to ICICI BANK account ( conversion to NRO is in progress) I am planning to maintain all my funds into ICICI nro account and close Citi bank account. Can you guide me on this?
Please provide your contact e-mail and phone number.
Yes, we can help you. The contact details are available in the “Contact Us” section at http://nareshco.com/blog/?page_id=192. Thanks.
Hi Jigar,
Thanks for the contents you are posting and these are very informative! I have moved out of india and have a nro / nre account . I want to transfer funds from nro to nre which is mostly my salary income from indian employer in the past. Would 15CA Part D suffice as i have paid tax on all the income (when my salary was paid)? Bank is insisting on CA and CB.
Thanks
The nature of source money is salary, it is taxable in nature so 15CB/15CA would be required. If you have filed income tax returns, you would be okay. Please contact your CA for the same. Else, let us know and we can help you for transferring money to NRE account. Thanks.
dear sir,
whether transfer of funds from NRO a/c to NRE a/c on amount received from sale of Property is require 15CA-CB. if yes, then how can NRI file 15CA as he dont have PAN no. in india and Remitter and Recipient are same in such case. And also suggest whether TDS is required to be deducted in such case?
I would be very thankful to you.
Thank you in advance.
1. Yes, as sale of property is a taxable transaction (may result in capital gain), 15CB/15CA would be required. An NRI would need a PAN for filing form 15CB and form 15CA. PAN is required for paying tax, for TDS deduction as well as for filing income tax return. Without paying tax, a CA won’t be able to ascertain if tax on the sale of property is paid.
2. TDS @ 20.6% (assuming value is less than 50L) is required to be deducted on sale amount. If you can prove the gain is less and tax liability is less, TDS at lower rate can also be deducted but you would need a certificate from your assessing officer (IT Officer). For which also, you would need a PAN. So, please apply for PAN immediately. Thanks.
Hi Jigar
My wife is a US Citizen. She moved to India. She transferred USD to her NRE. Then she was advised by the bank to place it in FD also advised to keep the FD in her mother’s account (who is an Indian Resident). After 4 months. She transferred the amount to her NRO account. Later a question was raised by IT about mother’s FD which we showed the source and we got clean chit. My wife then invested the amount in a FD for two years which was matured and was transferred back to her NRO. Now she would be charged interest for this amount. So far – From Indian tax point of view, her only income is the interest from the NRO account.
She has all the transaction details (bank statements). She wants to transfer the funds from NRO to NRE to avoid the taxes (and then claiming it back from IT department) each year. She contacted the bank. They say she needs to fill the form and as well to get 15-CA/B from chartered accountant. What is your opinion?
1. If your wife has moved to India, she is not an NRI but a resident and is not allowed to have NRO or NRE account.
2. All her income – NRE, NRO as well as saving account would be taxable from the day of her return as she is not allowed to have NRE account.
3. I am not sure of having FD in mother’s account.
4. Yes, you can file income tax return and claim extra tax deducted (TDS) as refund if her income is only of interest in nature.
5. As she is a resident and not allowed to have NRO/NRE, transfer from NRO or CA certificate or 15CA would not apply. Thanks.
I am US citizen, holding both NRE and NRO account in India. I have funds acquired through inheritance in NRO account. I am told by bank to furnish A2, 15CA, and 15CB forms in order to transfer funds to NRE, before I could transfer funds to US. I need to find out what code to be used on A2 form (the source of the funds is through inheritance). Your guidance in this matter will be greatly appreciated.
1. Inquire with the bank to understand the code and use the code in guidance with the bank personnel.
2. If you already have the form 15CB/15CA forms, please use the code included in the form 15CB and 15CA. Thanks.
Dear jigarji,
I will appreciate if you kindly answer my query
1. Can an U.S national permanently residing in India can retain aadhar card?
2. If U.S national permanently residing in India visits U.S for the period of 150 days if a financial year (I.e April to March ) works in U.S and pays taxes in U.S, had he to declare this amount to Indian income tax authorities, has he to file income tax return?, and if a person is collecting pension in U.S has he to file income tax return in India?
Thanking you!
Sangita
1. Yes, as you are living in India, you are allowed to have an Aadhaar Card.
2. If you are an Ordinary Resident of India, your global income would become taxable in India and you would need to include your US income in your Indian tax return. If tax is paid in USA, you may claim the tax paid in USA as credit while filing your tax return under DTAA (Double Tax Avoidance Agreement) between India and USA.
3. The taxability of pension needs to be checked under DTAA agreement. If taxable as per Indian tax laws and DTAA, the pension would become taxable for Ordinary Residents. Thanks.
HELLO JIGARJI,
ONE OF MY RELATIVE IS CURRENTLY HAVE USA GREEN CARD – INDIAN RESIDENT – INDIAN PASSPORT – STAY AT USA FROM NOV 2013 (APPX 4 YEARS).
HE HAD ONE PROPERTY SOLD IN HYDERABAD (INDIA) AND MONEY RECEIVED APPX RS. 49.90 LACS + INT ON THE SAME APPX RS. 4 LACS = TOTAL 54 LACS AS ON THE DATE IN HIS NRO ACCOUNT – WANTS TO SHIFT IT TO NRE ACCOUNT. BANK DEMANDS 15CA-CB CERTIFICATE.
PROBLEM / QUERY IS THAT BUYER HAS NOT DEDUCTED TDS / RELATIVE HAS NOT FILLED RETURN IN INDIA FOR CG AND INT INCOME. AS A CA , SHOULD I GIVE 15CA-CB IN THIS CASE.???? WHAT IS RISK FACTOR FOR CA???
Provided, tax is paid, you may give the certificate. If property sold in 2016-17, make sure return is filed. If sold in 2017-18, make sure advance tax is paid. Thanks.
Hi Jigar,
Say in above case advance tax is paid, still how Form 15CB can be issued since, remitter and remittee are the same person and the form addresses only tds not advance tax.
Also, transferring from NRO to NRE is not taxable transaction if advance tax is already paid. so would it be correct to file only Form 15CA part D and no Form 15CB.
Please guide.
In such case, TDS may not be deducted again and the transfer would not be taxable. You would need to explain that the tax has been paid in the basis for why transfer is not taxable. However, as the source of funds is taxable in nature, I don’t think bank would allow transfer without 15CB/15CA as bank can not determine the taxability of transfer and amount of tax / advance tax requried to be paid. 15CB/15CA Part C would be required. Thanks.
Sir kindly plz help me
I have successfully uploaded form 15CB
Then i filed form 15CA submitted it has shown form succesfully filed and transaction id is ……..
Then after that when i tried to view it with acknwoldgement number it showing record not found…
Then what should i do for that situation ??
I think on filing the form, you would get acknowledgement number. With the acknowledgement number, you will be able to see the status. Currently, the acknowledgement number is emailed to the client and thereafter, it can be accessed online. If it is showing record not found, try filing 15CA with the acknowledgement of 15CB again. If 15CA has been filed, the system would not allow you to re-file 15CA. If not, the 15CA may not have been submitted and you would have to re-file/submit 15CA. Thanks.
What is the solution for this?
15CA is emailed to the client so he would have the access. Thanks.
Hello Jigar,
I am an NRI living in Canada. I jointly hold an NRO & NRE a/c (My husband is primary account holder in both accounts)
I purchased a property in India in 2014 solely in my name and used funds from joint account and when I sold the property in loss in 2016 funds were deposited in joint NRO a/c.
My question is – Do I get 15 CA /CB in my name or my husband who is primary applicant. Property papers solely in my name and my PAN card used. But ICICI transfer form says 15CA signed by primary applicant is required.
I would like you help to make me understand as I already have got 15CA issued in my name instead of my husband. I am doubting if ICICI would accept that. Also is there a procedure where earlier 15CA can be cancelled and new one made in my husband’s name.
Kind off confusing situation for me.Would appreciate your help in this.
Thanks in advance.
Ritu
1. It is okay to issue 15CB/15CA in secondary holder’s name. I also think the 15CA / CB should be in your name as it is your income. Unfortunately, you would also need to prove that the source of money is yours. If not, it may be termed as husband investing in wife’s name, which is subject to clubbing i.e. include as your husband’s income and not yours. However, not going to too much technicality, please try to explain the bank of the situation and ask them to transfer funds in your name. Good luck.
2. The 15CA can be withdrawn (technically cancel) within 7 days of submission. Thereafter, it can not be cancelled. Thanks.
Hello Sir. I am an NRI. In order to transfer from NRO to NRE, will I have to be physically present in India or can a chartered accountant take care of the formalities including filling of forms 15 CA/CB and submitting to my bank for transfer to my NRE account.
No physical presence is required. You may have to sign and ship the documents for transfer. Please contact your bank and your CA. Thanks.
Dear Sir,
My sister is an NRI and lives in U.K. At the time of purchase of property in Gurugram, she had made 60% payment from her NRE account and the rest from her NRO account.
Recently she sold the property and received entire sales proceeds in her NRO account. She has received lower TDS certificate from ITO under section 197 and the requisite TDS amount has been paid to IT department.
She wants to transfer 60% of the entire sales proceeds from her NRO account to her NRE account. Both NRE and NRO accounts are with same bank. Please be kind enough to answer the below queries:-
1) Please suggest the modalities of the transfer.
2) Will filling up Form 15CA online suffice?
3) Is Form 15CB required inspite of having a lower TDS certificate from ITO?
4) Will there be any tax implications regarding transfer of 60% sales proceeds from NRO to NRE account?
5) Which account details (NRE or NRO) have to be filled in Form 15CA?
1. If the TDS is deducted as per Sec. 197, I would recommend to transfer all the after tax money (100%) to NRE.
2. Yes, you would only need to file Form 15CA Part B.
3. No
4. It is a transfer between Your one account (NRO) to YOUR another account (NRE). There is no income and as a result no tax, even for transferring 100%.
5. Account from which money is transferred i.e. NRO account. Thanks.
I am a non resident indian having NRO and NRE account. Now i need to transfer fund from NRO a/c to my NRE a/c. The fund to be transfered is the salary received RS 140000
I know that 15 CA and 15 CB is mandatory.
My doubt is that in which part of 15 CA should this be filed .
As the salary income is taxable in nature, you would need both form 15CB and 15CA to transfer the funds. Please contact your bank and your CA. Thanks.
Hello,
I am US citizen with both NRO & NRE accounts. I have given 50lac to my friend as loan and he is now returning it. I wanted to move this money to US.
I have been filling IT returns in India on the loan interest that I received. The original source of funds was my investments, salary etc when I was resident in India.
I do not have Adhaar hence my CA is not able to fill IT return for year ending March 2017. CA said he can’t give form 15CA/CB without filling latest return and that we cant create form 15 CA/CB online without Adhaar card.
how do we proceed? should I get Adhaar card next time I am in India? or is there another way to do this?
1. Aadhaar Card is not required for NRIs and linking of PAN and Aadhaar is not required provided your tax return is filed as “Non-Resident”.
2. I would also not issue CA certificate if tax is not paid. While it is not required to file the tax return. However, you may pay tax (advance tax / self assessment tax) for your CA to ensure that you have paid tax for him to issue the certificate. Thanks.
Hello Jigar,
You are doing a great job man.
I am a NRI based in Dubai. I want to gift some money more than INR 50,000 to another NRI who is not a relative in Dubai.
I just want to know if Income tax law of India for remitting to NRI in Dubai applies in the transaction
Thanks
Thanks
If you and the person who you want to gift money are both NRIs, it would be okay. If the person receiving gift is an Indian resident, he would have to add the amount (as it is more than 50,000) as his income in India. Thanks.
Hello Jigarji,
I am Residing in UK from last 4 years. I have a resident saving account and PPF account . Now i was informed to convert that resident saving account to NRO account . Since my dad is the second holder to that account that cannot be converted to NRE. SO do i need to open additional NRE account also, or Just NRO Account is more than enough , I dont want to transfer any major amount out side India at this moment. In future
Can i transfer and Receive money in my NRO account from my personal saving foreign account.
2 If i want to repatriate the Amount after sale of Immovable property which i purchased when i was resident in India , I am investing the proceeds in residential flat in India and balance amount after paying the Long term capital again on that part. I would be require to submit 15Ca which part part (Amount is the residue of sales proceeds after paying appropriate tax) and do we need 15CB also
Thanks for your guidance in advance
1. All resident account can only be converted to NRO.
2. While you can receive funds in NRO account from your UK account, if you want to repatriate (take money back to UK), you would CA certificate. If money is in NRE, no CA certificate would be required.
3. As sale of property could result in a capital gain, which is chargeable to tax in India, you would need CA certificate in form 15CB and filing of form 15CA part C. Thanks.
Sir, my son invested some money in ULIP 9 years back. A part of this money now withdrawn by selling some units and this has been deposited in NRO acct. Obviously , this amount , being from ULIP, is not taxable (?). Can this be transferred to NRE acct without much hassle. Pl. advise.
Whether the redemption is taxable or not would depend on the holding period and other terms and conditions. As money is in NRO account and the nature is taxable (could be cppital gain), CA certificate in Form 15CB and filing of form 15CA part C would be required. Thanks.
Firstly I would like to appreciate the crisp answers! Thank you and wish you a happy new year. I have 2 things I need help on –
1. In this blog, on the subject of “Understand new procedures applicable from April 1, 2016”, Section 1, Bullet A – reference is made to the ‘specified list’ . Is there a way to share the specified list?
2. I moved 7 years back to the US. Holding ICICI NRE and NRO accounts now. In addition I hold ICICI Prudential’s Pension and SmartKid policies, where in money was invested as a resident, I continued as a resident and didn’t change status with them. I want to withdraw the money – around INR 8 lakhs. This would mean remit to my NRO account. I understand from banks the form 15CA and 15CB will be needed. However, A. if the ‘specified list’ exempts this can I repatriate a sum less than INR 5lakhs to my US bank account in this year and the rest 3 lakhs in year?
B. Does the definition of ‘year’ goes by calendar year or India Fiscal Year?
C. If A and B aren’t possible, and I chose to transfer money out to my mother who is an Indian resident and then later she choses to return my money as a bank account transfer to my US account. Will this be a violation of any tax/ FEMA laws?
1. The specified list is part of the notification 93/2015 and is available on the Income Tax website at http://www.incometaxindia.gov.in/communications/notification/notification93_2015.pdf
2. As only one customer ID is required per bank, if your status with bank is NRI, your status with insurance policies with the bank would also be NRI. Please check with the ICICI bank.
3. Year = Financial year i.e. April – March
4. As RBI allows transfer of funds from NRO account, transferring money through mother’s account would be circumventing the law and may not be allowed as transfer of money to mother would not be a gift but a loan as you expect your mother to re-gift the same to you. The RBI rules relating to loan to close relatives will apply and the same funds can not be sent abroad. The parents are allowed to gift the funds under LRS and not return the loan received from local funds. Thanks.
Thank you!
Jigar Ji–
Here is our situation.
We are both OCIs/US citizens.
Wife’s father passed away. She was the nominee on all his FDs and one PPF.
We closed all these accounts and funds (>25L) have been deposited in NRO a/c operated by her as a primary and me being a joint a/c holder. we also opened an NRE a/c in the same bank.
What is the procedure to
1. directly repatriate to US bank, or
2. transfer holdings from NRO to NRE.
thanks
Whether you want to directly transfer to US or to your NRE account, the procedure is the same. As your wife has received funds on death of her father, the receipt is in the nature of inheritance, which is not taxable in India. However, she would need CA certificate in form 15CB and filing of form 15 to remit the funds (either to USA or NRE account). You would also need to declare the inheritance received to IRS while filing the income tax return for respective tax year and may have to report the account/asset in FBAR or FATCA forms. Thanks.
Hi Jigar,
1) Moved overseas following my husband’s relocation in Dec 2011. While I do not file returns any more (below the taxable income threshold), do I need to inform the tax authorities of my change in resident status?
2) I have some FDs in my resident savings account which accumulated over the years from my employment while in India. I haven’t converted my account to NRO yet. If I convert the account to NRO, a) what is the TDS the bank would deduct on the interest earned?, b)as my taxable income is below the 2.5 lacs threshold, can I claim a refund by filing a return?
3) Instead of getting involved in filing return, I am inclined to convert my resident savings to NRO and then transfer the funds to NRE. Do you know of any CA who can assist in certifying the 15CA, CB forms? I do not know any CA in India as I did my returns while in India on my own.
1. Yes.
2. Bank will deduct TDS @ 30.9%. Yes, you can file the income tax return and claim the refund of TDS.
3. We provide the service of 15CB/15CA. Please contact us when you have both NRO and NRE accounts opened. Thanks.
Hi Jigar, As you’d be aware, the government has recently changed rules for PPF accounts. NRIs cannot hold PPF accounts any more even if held when resident. I turned an NRI in 2011. I’ve religiously deposited every year since 2011. Does it mean I shall receive interest at 4% per annum since change of my resident status to NRI? I checked with my bank in India and they appear to have know clue at all on this new directive.
Assuming you had not renewed your PPF account after you became NRI, I would think you would get the interest at regular rates until November 2017 and 4% thereafter as the notification came out in November. However, I would immediately close the account. Thanks.
Regarding transfer of funds from NRO to NRE account.
Myself and my wife both are citizens of Canada and also have OCI status in India. Recently my wife received a share from the sale proceedings of an ancestral property (Amount Rs. 14.25 lakhs). The amount has been deposited in NRO account. We would like to move this amount to NRE. Please advise the process moving this funds to NRE account. Thanks
Regards
Ravi
If your wife were an owner of the property, there may be a capital gain consideration and as a result 15CB/15CA would be required. Also, TDS would have been deducted. Please consult your bank and CA for the procedures. If you don’t have a CA, please contact us. Thanks.
Dear Jigar Ji,
Thanks for helping people by resolving their queries , request you to please share your view on the following issue faced by me.
Thanks in Advance !
Background Information :
Remuneration by a Trust to one of the employee now settled in Canada :
• Employee is an Indian citizen , was working with the Trust for the past 15+ years in Delhi.
• She moved to Canada for personal reason and her status is NRI now,
• She is still and exclusively working for us and provides supervisory support from Canada regularly for smooth functioning through electronically (like skype calls, emails etc.).
• She reports to the senior management and around 10-15 people are reporting to her.
• She visits India every quarter ( total stay in India in a FY is less than 60 days) to review the progress of the work done.
• We are still paying her salary u/s 192 after deducting PF, TDS and transfer the net salary to her bank account in India and issue her Form16.
Queries :
We need a clarity based on the Indian Income Tax Act and India – Canada DTAA (article 14 and article 15)
Query 1 – As per DTAA – it states that the tax needs to paid in county of residence.
Query 2 – We are paying her salary in India and deducting TDS and depositing the same in India.
Query 3 – Can Canada tax department raise objection and demand tax from the employee stating that she is a resident of Canada, working from there and not paying any tax to Canada.
Query 4 – What is the correct way of paying her remuneration and taxes , to avoid any compliance issue from the point of employer & employee ?
1. As you do not have any operations out of India and she is managing your India operations as well as the salary is being deposited in her Indian bank account, the salary income would become taxable in India.
2. As she is also a resident of Canada, she would need to include the salary in her income and claim the credit of tax paid in India in her Canadian tax return. Thanks.
Thank you very much for your input.
Will be obliged if you could throw some light on the below mentioned points.
Query 3 – Can Canada tax department raise objection and demand tax from the employee stating that she is a resident of Canada, working from there and not paying any tax to Canada.
Query 4 – What is the correct way of paying her remuneration and taxes , to avoid any compliance issue from the point of employer & employee ?
Thanks,
Anil
3. Yes. However, under DTAA, she is allowed to get the relief/benefit. Thanks
4. Pay salary, deduct TDS, file tax return in India. File tax return in Canada reporting Indian income and claiming DTAA benefit. Thanks.
Thank you very much.
Dear Mr Patel
First off many thanks for taking the time to provide such comprehensive information in your blogs not to mention the 1:1 guidance you are providing to folks on their specific queries. Yours is the only website I have ever come across that provides details in such depth on Indian tax/finance related topics – for that I am extremely thankful.
I need your guidance on a specific situation I have. I am a UK resident /citizen and hold an OCI. I have an NRE account in India. Nearly 2 years ago I transferred 35 Lakh INR to my brother’s Indian account as a loan to assist him in buying a flat as he couldnt dispose off his old house in time to buy this flat. He has finally managed to sell off his old house and is ready to pay me back the entire sum of 35 lakh INR. I have opened an NRO account (and a new NRE account) with a bank. I wish to receive the payment of 35 lakh INR in my NRO account and then transfer it to one of my NRE accounts (either with this same bank or the original NRE account in the other bank). I have looked through the specified list and cannot workout which purpose code this repayment of Loan aligns with -incidentally I am not charging any interest on this loan. I wanted to understand if I need 15CA and 15CB to receive this amount in my NRO account and then transfer it to my NRE account.
Many Thanks for your time in advance. I look forward to your kind guidance.
Best Regards
Saurabh
An resident can borrow money from his close relative (brother) on repatriable basis (loan from and repayment to NRE account) provided certain conditions are met. The loan needs to be without interest, for a period of 1-3 year period. There are certain conditions for use of funds as well. If the bank where you have NRE account, agrees that the loan was on repatriable basis, the money can be directly credited to NRE account. If not, the money will be deposited to NRO and then transfer the funds from NRO to NRE. I think you would need 15CB/15CA for the same. Thanks.
Dear Jignesh,
I am Mini from Singapore. Me and husband are from India, holding Permenant Residence here. Have an idea to apply for citizen ship here. In that case ,have some doubts on Selling our properties in India and repartriate money back to Singapore.Pls help.
1. I have some land and homes in India. Both of them bought under loan from ICICI bank. Can I sell them and put the money in my NRE account and repatriate to SGD? Is there any limitation on this?
2. Can you sell gifted property (Like my father gifting me) and bring back the money here? Any limitation of the money?
Thanks.
Mini.
1. While you can sell the land and other properties, the money will be credited to NRO account. Only after payment of tax or deduction of TDS, CA certificate in form 15CB and filing of form 15CA as well as submitting documents/forms as per bank’s requirement, you will be able to transfer the funds to NRE account.
2. Yes. However, I would recommend that your father sell the property and gift directly to your Singapore account, if possible. Your father can only gift upto equivalent of US $250,000 per year. Thanks.
Good morning Jigarji,
Sir,
My client is an NRI, he has a property in Haryana. He sold the property in the month of January for around 80Lakhs , acquired/registered in the month of December 2008.
My query is:
(1) Client has already made Advance payment for purchase of property in the year 2005, However possession/ registry was done in the month of December’2008, will the indexation be done from the year 2008 or 2005.
(2.) In the both the cases there is LTCL in sale of property , do we need to deduct TDS on the sale proceeds?
(3) However Buyer has deducted TDS @ 1% in the sale proceeds of the proceeds of property, Can we repatriate the entire sale proceeds less 1% TDS i.e.(79.20 lakhs) from the clients NRO account to his NRE account?
Kindly provide your guidance ,
1. whether Form 15CA / 15CB can be issued even if TDS is less deducted.
2. Capital gain to be calculated from the date of advance or date of registry
3. Any liability on client part if TDS is less deducted by the buyer?
Regards,
1. Indexation is available based on the payment made for acquiring the house. It may not be 2005 or 2008 but multiple years based on years inwhich payment was made.
2. For NRI, TDS @ 20.6% will apply.
3. It is the responsibility of seller to inform the buyer that he is an NRI and to deduct tax as per NRI. It is the responsibility of the buyer to deduct the tax.
4. As this is a taxable transaction (sale of property may result in capital gain), 15CB and 15CA would be required.
5. If TDS is deducted less, advised to pay the advance tax for the tax shortfall. Thanks.
Hi Jigar
My mother wants to gift me 4 Cr rs as she is getting old. She is indian resident and files her tax returns. I hold NRO/NRE accounts in India. Hold british passwort and OCI.
Can she transfer 4 cr as gift to me and deposit it in NRO account ?
Do I have to worry about LRS ?
Thanks
Raj
1. No. A resident is allowed to gift only equivalent to $250,000 per year to NRIs i.e. about 1.6 cr. As the limit is per year, your mother may gift 1.5 cr before march and 1.5 cr in April to meet the limit.
2. She may write a will and give all 4 Cr under will to you. There is no restrictions about amount of inheritance from resident to NRI. Thanks.
Hi Jigar,
I had invested in an apartment (in my name) in Mumbai using my savings accumulated in UAE. The funds were transferred from an NRO account (joint account with my mother). The project got cancelled and I got the funds refunded. The funds are now residing in an NRO account, and I would like to get them back to UAE.
How do I go about it?
Regards,
Manish
You would need a CA certificate in form 15CB and filing of form 15CA to transfer the funds. If interested, please contact us at nri@nareschco.com. Thanks.
For some reason, the email has bounced back. Do you have any alternative email address?
Sorry, my mistake. There was some error. The correct email is nri@nareshco.com. Sorry about the same. The contact details is available in the “Contact US” section of the blog and are valid. Thanks.
Sir, your blog is great. A real source of knowledge.
I would like to know if a resident pays rent (after TDS) of an immovable property to an NRI in INR in his s/b a/c in India (NRI is maintaining a s/b a/c.) whether there would be any requirement of filing Form 15CA / CB as Rule 37BB says “The person responsible for paying to a non-resident”. There is no requirement in the rule that 15CA / CB is to be issued only on foreign remittance.
Would the answer be different if payment is made to NRI’s NRO/NRE A/c.
Thanks.
1. If you are making a payment to an NRI, you need to deduct TDS @ 30.9%.
2. Technically, you are right. However, if the NRI deposits the cheque in NRE account, it is required. Practically, it is okay if the NRI deposits the cheque in NRO account. An NRI is not allowed to have a resident account but need to convert the same into NRO account. Thanks.
Sir:
Need your help and advise.
I am an NRI. I have an NRE account. I have been sending USD to my parents since about 2004 with which they bought some gold and FDRs. In about 2015, they sold all gold and FDRs and saved that money in the form of INR in my mom’s resident account in India. Unfortunately, I don’t have any receipts of gold that they bought previously. And also I don’t have any traceability to my dad’s account to whom I used to send money in form of USD as my dad does not live with my mom or us anymore. All we know as of now is my mom’s resident account has INR which we saved as everything in there again as FDRs since 2015. Now these FDRs are matured and I want all the money back to me into my NRE account. Couple of reasons being my mother is moving to US and she will also be an NRI by end of this year and we cannot leave any money on my mother’s resident account anymore.
Now my question is how can I transfer all this money (about USD 570,000 – Principal + interest) FROM my mom’s Resident account to my NRE account in INDIA? My mom has paid taxes on all the interest earned so far…
I did hear about 15 CA and 15 CB but I am afraid that process in india are cumbersome and they may raise red flags as we don’t have details as to how I converted all USDs to gold and bonds before 2015 (when we converted everything from my dads account to my mom’s as they are not together any more).
Can my mom transfer all money to my NRE as a gift asap?
If not, Is there anything in 15 CA and 15 CB that I qualify where my mom can give everything as a gift to my NRE account?
Also how much time it takes for all 15 CA and CB approvals?
Please advise so I can get all my money principal + interest to my NRE account from her resident account.
Thank you, Sir
1. Money you sent to your parents were in the nature of gift and does not belong to you. Any sale proceeds would be theirs and can only be credited in their bank account.
2. Money can not be transferred from a resident account to an NRE account. While your resident mother can give a gift to his NRI son, it is only $250,000 per year. Also, the money is to be deposited in your NRO account.
3. You would need a CA certificate for moving funds from NRO to NRE account. Thanks.
Jigar,
My father had some money, which he gave to the relative to buy house. Now that relative want to give money back, but my father doesn’t want to deposit it in his account and instead he is asking me to deposit in my NRO account.
What should I do? I am US citizen and how could we do this transaction legaly? do we need to do any documentation with that relative? how?
Thanks
I would highly recommend to deposit the money in your father’s account to simplify the transaction and comply with laws. Once money is in his account, he can gift the same to you. Thanks.
Hello Sir,
Thanks for your blog and suggestions providing by you.
I am a NRI settled in Canada.
Since past 10 years , I am sending money to India by money transfer from my NRE account and also direct money transfer using “Money to india” service from ICICI bank.
Some of the the money sent to India used as hand loans to 2-3 friends. (Around 12 Lakhs) , now they want to return that money in cash to me and want to deposit into my NRO account.
Q1 : Do I need to pay tax for this deposited amount ?
Q2 : How I can repatriate this amount to Canadian dollars?
1. Tax is only on income. If any income is generated of the investments, you would need to pay the tax. If no income, no tax is to be paid.
2. I think you would need the 15CB and 15CA. Please contact your bank and your CA. Thanks.
I am resident in Sweden. I have my salary and interest from FD’s in NRO account. I want to transfer it from NRO to NRE account. Apart from obtaining 15CB from charter accountant, which part of 15CA I need to fill? As I am transferring from my own account so Part D for 15CA will be applicable?
Regards
Yogesh
If you have obtained form 15CB, you can only file for 15CA part C. Thanks.
Dear Sir
Thanks for your these Q&A, we had moved to India in 2011 for good and also got most of the funds in India. Most funds were transferred to NRE account and then further moved to NRO. We had invested in various properties, and now we would like to go back and sell these assets. These are my questions
1. Since we gained the resident status even if we hold US citizenship, now how do we go back and convert these accounts in NRE and NRO accounts.
2. Can we sell assets before we get back our accounts to NRE and NRO accounts?
3. My understanding is that NRE and NRO accounts only come into picture when we stay out of the country.
So need your help with the above questions and I would certainly contact you for forms 15 CA and CB as I did get from your answers that we would probable need one.
Thanks for your help.
1. If you are living in India (Indian resident), you are not allowed to have NRO/NRE account but can only have resident account.
2. NRO/NRE would not apply to you.
3. 15CB/15CA would be required only if you transfer the funds outside India.
Please contact us at nri@nareshco.com for any question or guidance for investments or taxation. Thanks.
Hello
I have been transferring funds to India in my normal savings account. 2 years ago, I converted that account into NRO (and I also opened a new NRE at the same time). I should have transferred the funds from NRO to NRE whilst opening the NRE account. Anyway, mistake done! Now, I want to transfer the funds from NRO to NRE. Once they are in NRE, I can easily repatriate them as and when needed. My bank is asking me to fill up 15CA and 15CB. But I am not sure which part of 15CA should I fill up. Please guide! I urgently need those funds in the UK.
My bank is also asking for the proof of source of funds. Would providing the statements be enough?
Milind
1. Please contact your CA to issue a CA certificate form 15CB. You would file form 15CA part C.
2. I think it would be enough but better to check with the bank. Thanks.
Is DSC is mandatory for an NRI to submit Form 15CA.?
No. DSC is not required for NRIs to submit 15CA. They can submit the same online without DSC. However, they would be required to manually sign the acknowledgement generated after form submission. Thanks.
Sir,
Sir, is Form 15CA-15CB required to be filed, in case of payment to N.R. for the purpose of buying Residential property from him?
Transaction Value is about Rs. 50.00 Laks.
And whether such form are required to be submitted before making payment to N.R.I.?
As the seller is an NRI, you would deduct TDS @ 20%+surcharge+cess. You may give 15CB/15CA and then the money can be credited directly in the NRE account of the seller. If the seller obtain a lower / nil deduction certificate, you would deduct the tax as per the certificate. Thanks.
Hello Jigar bhai, this 20% TDS is to be applied on the total property sales amount or on the LTCG only? If on LTCG, then who will calculate the LTCG? Kindly clarify.
Technically, 20% is applicable on the capital gain income. However, as only the IT (assessing officer) can calculate/determine taxability, a lower deduction certificate from assessing officer would be required. Otherwise, TDS would be required on the sale proceeds (payment). Thanks.
Sir,
i would like to ask you one question..
we have a company india got the consultnacy service from foreign compnay what we be TDS deducted from payment made to them.
regards
sunil kapadia
The rate of TDS would depend on the nature of service, agreement between parties, DTAA as well as whether TRC/10F is available. Please consult your CA. Thanks.
Hi
I am selling my house in India for 24 lac rupees.
But the capital gain is 4 lacs. What forms I need ?
Thanks
As sale of property is a taxable transaction, you would need form 15CB and form 15CA part C. If you are applying for lower deduction certificate from your IT Officer, you would only need form 15CA part B. Thanks.
Hi,
In Form 15CA Part C, what would be the Purpose Code. I am selling my house in India and will be paying Tax. The Money from the sale of my house will be used in paying up my mortgage. So for this reason what would be the purpose code.
It would be either for savings / investment or capital gain on sale of property. Please check with you bank. Unfortunately, I have experienced banks being extremely picky about purpose code. While I would not use their code without checking, it is recommended to know their point of view. Please check with your CA as well. Thanks.
Hi Jigar
I was in USA from 2011 to 2014; my saving in USA was transferred to my Resident Account India during this time as I didn’t have NRO account. I was in India from 2014-2015 (a year). I have been filling income tax in India every year; even when I was in USA.
I then moved to Canada from 2016 . I just converted my Indian resident account to NRO and also opened NRE account. I wanted to bring my funds /saving from NRO account to NRE and then repatriate to my Canada Bank A/c.
– I understand from your post that I had to get CA certificate (15CB) and fill form 15CA- can you guide me which part of 15CA should be filled?
– After submiting 15CB and 15CA- Part A/B/C/D as needed; do I need to complete any other documentation?
– How much time will it take to transfer from NRO to NRE? ICICI bank in India said it may take a year sometime or it may be only few days. Is this correct?
– I ‘m needing this money urgently as planning to buy house in Canada.
– Are there other legal alternatives? I was told that I can give GIFT to my wife – who is PR resident in Canada.not sure on this.
1. As 15CB is to be issued, you would need 15CA Part C.
2. It would depend on the bank.
3. Normally, it takes few days – max a week unless complicated transaction.
4. Please contact your CA.
5. No. It would be circumventing the law and not legal as you are also an NRI. Money may not be remitted abroad by an NRI without 15CB/15CA. Thanks.
Dear Patelji,
My daughter who is a US citizen has sold gold jewelry worth Rs.2.50 lakhs & paid capital Gains also. She wants this amount to be transferred to her NRE account from NRO account in which it was deposited. I understand that she has to file Form 15CA only. In Form 15CA under “Remittance” subhead, I have two doubts:
1.Proposed date of Remittance: If a date-say 20th Apr 2018- is put, is it necessary to do before this date or any time provided after this date? (Since it may take sometime to get signed copy from US & then submit it to the Bank & hence this question).
2. Nature of Remittance: What should I put in this(From the drop down menu)?
Subramanian.V
1. You can transfer only on or after the proposed date. You may not transfer funds before proposed date of transfer.
2. You would need to select the nature of remittance that is closest to yours. Thanks.
I received funds from the closure of my PPF account on maturity. I deposited the draft in my NRO account. I now want to transfer the funds to my own NRE account. Two questions:
1. Can you please confirm that the Form 15CA that I need to create is Form 15CA Part D?
2. Does the CA need to also give a Form 15CB, or is transfer of tax-exempt funds to my self not need this form?
1. The bank may not remit funds with only 15CA part D.
2. If your amount is less than 5L, part A would apply. If more, you would need CA certificate in form 15CB and filing of form 15CA part C. Thanks.
Sir,
Is filing of form 15CA mandatory if I am making payment to NR in his NRO account for purchase of property.
What would be the applicable rate of TDS if the consideration is less than 50lacs.
The TDS rate for purchasing a property from an NRI seller of less than 50L would be 20.6% for LTCG and 30.9% for STCG. Thanks.
Hello sir
This is to enquire that me and my family are immigrating to Canada and we need a banker’s draft as a proof of funds and also the same we will use to remit our funds in Canada. Do we need to submit form 15 ca and 15 CBS for the same ? Thanks
I don’t think so as certain allowance for travel / immigration is allowed. However, if you are planning to move big chunk, 15CB/15CA may be required. Thanks.
Is it possible to file 15CA and 15CB for an NRI without a PAN card? If yes, what is the procedure. The bank requires 15CA and 15CB for transferring funds from NRO to NRE as part of an inheritance settlement.
PAN would be required for 15CB and 15CA as the taxability of the settlement may become issue in future and only income tax department can take that call. Without PAN, it is not possible to track or find a person so PAN and 15CB/15CA may be required. Thanks.
Hi Jigar,
I am a Canadian Citizen with a NRE a/c in India,
My Father (currently Indian Citizen)had a FD in India and wants to gift the money to me .My qtn is what is required to have this FD transferred to an FD in my name, Also how to I bring this money to Canada?
Also While I was an Indian Citizen years back I had started some investments like LIC, Mutual funds , I wish to close all and Deposit all in NRO a/c and transfer them to Canada. Can these be deposited on the NRO a/c I open and transferred to Canada?
1.You may not transfer the FD from your father to your account. You can only transfer the money in savings account.
2. If your father is an Indian resident, he is allowed to remit upto equivalent of US$ 250,000 to you. However, if he is an NRI (lives outside India), a CA certificate in form 15CB and filing of form 15CA would be required.
3. Yes, you can sell all your investments and credit the same to your NRO account. From NRO, you may also transfer the same to Canada after 15CB and 15CA procedures. Thanks.
I have received Gift on Marriage and deposited the same in my NRO A/c.
Now I want to transfer the same to NRE A/c.
Whether 15 CB is required or I can only file Part D of 15 CA without form 15 CB
While gift on marriage is tax free, practically, the bank would require 15CB and 15CA for the same. Thanks.
Dear Jigarji,,
I rented my property when I was resident Indian, but now I am nri I served legal notice to my tenant informing him to deduct 30.9% tax as tds and deposit it with incometax authority but he dose not comply with it .
1 what is the option available to me in this case.
2 my tenant is violating the law of the nation .
3 can I inform the tax authority about his violation.
Sincerely yours
vyomesh shah
It is your responsibility to inform your tenant that you are an NRI. It would be his responsibility to deduct TDS @ 30.9%. However, if he doesn’t deduct, you would pay the tax as advance tax and file your tax return. You are not in violation. Also, income tax department may not be bothered too much as while they are not getting TDS, they are getting the tax due by way of advance tax from you so there is no revenue loss to them. Thanks.
i believe 30% is not applicable to some countries, like UK, UAE, which are 15 & 12.5% respectively. is this correct?
The lower rate of tax is as per DTAA – Double Tax Avoidance Agreement with India and respective countries. I think the 12.5% and 15% rate is for the interest income and not income from house property. However, if a lower rate is mentioned in DTAA, you would need a TRC – Tax Residency Certificate from the country of your residence and submit the same to the deductor. You may also need to complete and provide form 10F. Thanks.
Dear Sir,
We will be shorthly immigrating to USA. Current i have my saving bank account and the income source is Salary and FD Interest.
How much money i can take with me to USA and what are the different ways for the same. Also in future how can i transfer money in my saving accounts to Overseas account as an when required.
Thanking you
Patel CJ
As you will be migrating to USA, you would become NRI under FEMA and would be required to inform bank to designate your resident account as NRO. From the NRO account, you are allowed to remit upto $1 million (6.6 cr) per year to USA. So no need to worry about remitting funds. Just make sure to convert your resident account to NRO and opening NRE account after your move to USA. Thanks.
Hi.
If want to transfer funds from Saving bank account in India to Foreign account in USA.
Can this transfer of funds can be done without opening NRO account in India. Please let us know on the any other requirement for this
As an NRI, you are not allowed to have a resident account. Just tell your bank that you are an NRI and they would convert/open NRO account for you. Only residents are allowed to have a resident account and there may be some restrictions for residents to remit funds abroad. It would be easier to transfer funds from NRO account. Thanks.
Dear jigarji,
1. Can an NRI buy nhai bonds in order to save capital gain tax?
2. whatever interest has been generated from nhai bonds can an NRI deposit it in his NRO account?
3. Which are other ways and means by which an NRI can save capital gain tax?
Thanking you.
Sincerely yours
Sangita
1. Yes. However, I would not recommend now as from F.Y. 2018-19, the lock in period is 5 years and the interest rate is only 5.25%, which is taxable in India. You would be better off paying tax @ 20% and investing 80% intelligently.
2. Yes, it can only be deposited to NRO account.
3. Invest in a residential property. Please consult your CA or us for professional guidance. Thanks.
Case:A NRI (Landlord/Lessor) rented his flat owned by him to an Indian resident, where monthly rent received was RS.62,000.The Rent Contract was entered into for a period from 1st August,17 to 31st July,18. Money was received in NRO A/c and retained in India and not repatriated outside India.
1. In the given case TDS tax liabilty is on whom, NRI or Tenant?
2. What is the tax rate applicable(Also, whether inclusive of EduCess and Higher Education Cess)?
3. What is the Forms required to be filled and what is the procedure for the same and time limit for submission of the same?
4. Is TAN required to be obtained by the deductor?
1. TDS liability is only on the payer i.e. tenant.
2. The tax rate is the marginal tax rate i.e. 30.9% or 31.2% now.
3. The tenant would need to apply for TAN, deduct TDS and file TDS returns quarterly.
4. Yes. Please contact your CA. Thanks.
If the rent payment is received in the NRO account, will the tenant need to file Form 15CA?
While it is recommended to have 15CB/15CA, banks don’t ask for the same as it is being credited to NRO account. Bank require the 15CB/15CA for transfer from NRO to NRE or outside India. Thanks.
How can a PF Trust (established by a company) remit the PF Balance to a company employee who is deployed outside India in Company’s unit?
Is it necessary to open NRO account or there is any other way?
Thanks.
I would recommend you check with your PF consultant and bank for the same. If the payment is to be made in India, the NRO account of the employee would be required. Thanks.
AD bank remitted sum of >5 lacs (from company’s current A/c), upon request made by us, against rental payment to NRI landlord’s NRO A/c in India without asking for 15CA/CB as payment was made to NRO A/c within India. TDS was deducted @30.9% u/s 195 & deposited on same day of remittance in March 2018. Will there be any adverse implications for us for non-submission of 15CA/CB? Also, we are clueless whether AD bank has reflected this remittance in its quarterly 15CC or not. Thanks in advance!
Technically, it is required but as the payment went to NRO account, you would be okay as bank require 15CB/15CA while transferring funds from NRO to NRE account. It is good that you have deducted TDS @ 30.9%. Thanks.
I am trying to repatriate about 50k from NRO account to my Account in Qatar. The source of funds if transfers from NRE to NRO (do we need proof?) can i transfer without any documentary proof??
How does the Taxable component impact the transfer?
There is no tax on transfer of money. Tax is only on the interest income. If you have filed tax return after reporting the interest or TDS has been deducted properly, you will be able to transfer the funds from NRO to NRE. However, you would need a CA certificate in form 15CB and also need to file form 15CA for the transfer. If you need our help, please contact us at nri@nareshco.com. Thanks.
Dear Jigarbhai,
My brother is now US Citizen.
He has filed his IT returns online for income earned (mainly interest) in India. Now, he would like to transfer his money from NRO a/c to NRE a/c for the payment of his son’s college fees.
What is a procedure? Please guide.
Thanks.
He would need a CA certificate in form 15CB and would file form 15CA for transferring the funds. Please contact us at nri@nareshco.com if you want us to help you for the transfer. Thanks.
Hi Jigar,
Thanks for all the information you provide. I had a clarification on NRO repatriation.
Hi, I had a question what source of funds code to use. Let’s say I am converting my existing domestic savings account to NRO. I want to remit all of the balance in that account out. Now, this account is opened for so many years and it would typically have had many different categories of deposits (interest, salary, rent, refunds etc. etc.). How do I determine what source of funds to use in Form 15 filing?
Thanks
The Form A2 asks purpose code and not source code. For source, you may say transfer of savings after payment of taxes provided you have filed your tax returns. Thanks.
I have a NRO account and would like to repatriate funds from India branch to Dubai branch.
The bank has asked to fill Form 15CA.
Should I fill only Part D where is says the remittance is not taxable.?
Thanks,
As CAs are authorized to determine taxablility, you would need a CA certificate for the same. Please contact your CA. Thanks.
Sir,
My father expired about 7 months ago. We are three sisters. One of my sister is in Singapore. I have to transfer the one third of the inherited money to her (as i am a joint holder in my father’s account). Is there any tax liability?? What are the formalities required (any forms to be submitted )
Really appreciate your helpful blog.
Thanks/Regards
Charu Gupta
There is no tax liability as inheritance is exempt from tax. However, it is recommended to transfer funds to your sister’s NRO account and then let her transfer out of NRO as inheritance money. A CA certificate in form 15CB/15CA would be required so please contact your CA and your bank. Thanks.
Dear Jigarji,
If you can high light the following
1 Is it mandatory to link pan card with aadhar card for NRI/oci card holders
2 what about those foreign citizen residing in India (who is resident in India) is it compulsory for them as well for linking pan card with aadhar card.
3 A person has opened account in foreign country when he was residing in that country but now he is resident in India is it legal to maintain foreign account which is practically inoperative? and there is no income out of it.
Thanks
1. Aadhaar is not for NRIs so an NRI having an Aadhaar is against the law so no question about linking Aadhaar with PAN for NRIs. Please note this is true only if a person (NRI/OCI) lives outside India and filing tax return as an NRI. If an OCI card holder has settled in India and filing tax return as resident, Aadhaar would be required.
2. Yes
3. It is allowed. However, he would need to include the account as foreign assets in his tax return. Thanks.
Mr Patel,
Is holding of an Aadhaar Card by an NRI against the law? I believe the rules have changed.
I have a query. My son is applying for xfer of funds from his NRO to NRE acct. The amount is return of loan given to a close relative under RBI regulations. He has Forms 15A and 15B. What other documents will be needed by his bank to effect this xfer?
1. Only persons physically present in India for more than 6 months period can apply for an Aadhaar. There is no change in the requirements. As NRIs stays less than 6 months, it does not apply to NRIs. There is a clarification by the UIDAI for NRIs as well.
2. Please check with the bank for the documents required as you would need to convince the bank to transfer the funds. Thanks.
Hi Jigarji,
Income tax refund, LIC maturity is not taxable. Do this only require 15CA part D?
Thanks in advance.
As only CAs are authorized to determine taxability of receipt, CA certificate in form 15CB and filing of form 15CA Part C would be required. Please contact your CA and bank. Thanks.
hi Mr patel..
on my wedding my father wants to gift me 20 lakhs , iam working in the merchant navy and as per indian tax laws NRI. filling zero tax return . Could you please tell me how can i transfer this amount in my nre (rupee) account in india.
thank you
You would need to transfer funds from NRO to NRE account and would need a CA certificate for the same. Please contact your CA and bank for the certificate and procedures. Thanks.
Hello Sir,
Whether issue and acceptance of debit and credit notes to and from a foreign party allowed under FEMA?
Regards,
Rishi
If it is related to import of goods, it is allowed for genuine transactions. However, if there is an inquiry, you would need to have documentary evidences. Thanks.
Hi Jigarji,
My sister settled in USA. Our father deposited Rs 50 Lakhs to her account as his gift to daughter . Father is a business man and a regular tax payee.Now my sister wants to transfer this money from her NRO account to her NRE account so she can withdraw it at USA. what are the procedures.Banks asking us CA Certificate .
Yes, a CA certificate would be required if the money is transferred from your sister’s NRO account to her NRE account. However, your father is allowed to give gift upto $250000 per year under LRS to NRI close relatives (his daughter) directly from his resident account to her US account without 15CB/15CA by just submitting a declaration. Thanks.
Hi,
On 14-Apr-2018 i have moved to USA for period of 19 months (till Nov-2019). i am getting my salary and allowances in India. I need to transfer them to USA for my maintenance. Do I need to convert my resident account (in which i receive my salary and allowances) into NRO for repatriation of funds and what forms needs to be submitted. i am required to transfer funds every month.
As you have moved out of India for employment, you are an NRI under FEMA and can only have an NRO/NRE account. Just inform the bank that you are an NRI and they would convert your account to NRO. Please contact your bank. Thanks.
Our company wants to make Salary payment to resident employee of Bangladesh. Whether we need to file Form 15CA for Salary payment. Form 15CB is not required as not taxable
Sec 195 and 15CB/15CA is for any payment except salary. So I don’t think 15CB/15CA is required. However, please check with your CA and your bank due to some restrictions due to employee being citizen of Bangladesh. Thanks.
Dear Mr. Patel,
I had transferred Rs. 40lakhs from my NRE a/c to a builder for purchasing a house. But the builder did not give the possession of the flat and hence the deal got cancelled. The builder returned the whole amount which has been deposited in my NRO a/c. Now the bank insists for 15CA/ 15CB for transferring to my NRE account. As the bank insists, I think I have to declare 15CA in part C. The queries are as follows:
I) As per me, it is only a transfer of funds as really there are no sale/purchase transaction happened. Hence no taxability arises.
II) I have been filing ITR and paying tax regularly on my NRO interest, etc.
III) Is the Interest for few days on this 40lakhs in NRO a/c (gap of days from transferring this money from NRO to NRE) taxable and anyway I am filing my ITR.
IV) In this case, the Remitter and Remittee(beneficiary) are the same person. How do we fill?
V) What is the Relevant Purpose Code of RBI in this case?
VI) What is the Relevant Section of the IT Act, under which remittance covered?
Thanking you in advance.
1. Yes.
2. Yes
3. Yes
4. Same details
5. Refund of property or just remittance out of saving.
6. IT does not apply.
Instead, you could have directly credited the funds to NRE account be saved from all the trouble. It is allowed to credit the refund of money on cancellation of property originally paid from NRE account directly into the NRE account. Thanks.
Hello jigarji,
An Indian company providing relocation services (immigration, logistics, service appartments, car rentals etc.). It Does not have any branches abroad. They procure the service of a foreign company (may be as agent) for relocation of its clients abroad (transportation and service appartment arrangement was done by this foreign company on behalf of Indian company for their clients). Now this foreign company raises Invoices for their service to Indian company for serving their Clients. Invoice is raised in Foreign currency to Indian company.
Querry 1) Service provided by foreign company is out of india, will the payment by indian company to this foreign company attract GST under RCM
2) What would be TDS implication on payment to such foreign company for their services provided abroad.
If the services provided by the foreign country can be included in the fees for technical services and TDS would apply. GST on RCM would also apply. Please check with your CA. Thanks.
Jigar Ji,
I have following questions and request you kind answer on these.Am an OCI.
1)Sale of land( purchased when I was resident)proceeds were deposited in NRO a/c.Later another land is purchased from that amount and paid by debiting to NRO account.Now after 3 years I plan selling that res. plot and credit the sale proceeds
to NRO account.Now my question is whether I will be able to repatriate that amount after paying all taxes and submitting 15 CA/CB?
2)If sale of res.plot proceeds is invested in 54 EC bonds(to save capital gains tax) and after 3 or 5years after maturity,will I be able to repatriate the principal amount realised from bonds?.(The bonds proceeds will be credited to NRO a/c).
Thanks.
1. Yes
2. Yes
For both, you would need a CA certificate in form 15CB and filing of form 15CA. Thanks.
Dear Mr.Jigar,
My previous email was deleted with any out reply from you.In the hope getting a reply I am sending my brief queries which may be helpful to others too in similar situation.
1)If 54EC bonds(bonds purchased from NRO–are they termed as’ non repatriable
bonds’?),the proceeds after maturity if credited to NRO account ,the proceeds can be ‘remitted’ to US?
2)Similarly,If site purchased from debiting to NRO account(the amount related to previous site sale proceeds) and if the this site is sold and proceeds credited to NRO account,whether these proceeds can be ‘repatriated’ or ‘remitted’?
Kindly provide guidance for immediate future planning in the above situations.
Thanks.
1. Yes, it can be remitted provided it is accompanied by a CA certificate in form 15CB and filing of form 15CA.
2. Yes, Only after 15CB/15CA. Thanks.
Hello Jigarji,
I found this page to be great sourced of information. Thanks for doing it. It is immensely helpful.
Here is my situation:
1. I lived in USA for many years and transferred funds to India through NRE account.
2. After staying in USA, I moved to India and converted my NRE/NRO accounts to resident accounts.
3. Now, I am again back in USA and wants to bring my INR money to USA. I am also in the process of getting my resident accounts converted back to NRO.
Can you please advise me the process to repatriate/bring money from India to USA now?
Would appreciate your response.
Once your accounts are NRO, you are allowed to remit upto $ 1million per year to USA. You would need a CA certificate in form 15CB and filing of form 15CA for the transfer. Please contact your CA and your bank. Thanks.
We have uploaded Form 15cb but it requires some correction has requested by the client. How to revise the form 15cb?
There is no steps to revise/ cancel 15CB. If 15CA is not filed, you may issue another 15CB and make a note in the same about the earlier one and file 15CA with acknowledgement number of revised 15CB. If it is a big amount or if you want to be careful, you may want to send an letter to the ITO about error in submitting 15CB with a request to cancel the same. Thanks.
Hi sir, your experience is very rich and I am sure I will get a right guidance from you.
I am an NRI, entered in to a sale agreement with a Resident in India for sale of my Flat in India. I submitted my papers to IT dept for nil/Lower TDS deduction certificate. Deal >100lac. I have an NRO & NRE accounts and I am doing my IT returns filing from 2012 regularly. Pl advise me what should I do to get this money from sales proceeds to return to my NRE account.
If you can get the nil/lwer TDS certificate, provide the same to the buyer who will deduct the TDS as per certificate. You would just need to file form 15CA part B to transfer your funds to NRE account. There is no need for a CA certificate. Thanks.
Sir, I am an NRI, can I be able to transfer funds from my NRE account to my Daughter in Law “under the LRS as GIFT ?
1. LRS is only for residents and it does not apply to NRIs.
2. A resident is not allowed to gift amount to NRI daugher-in-law- only close family – siblings (brother/sister) and children (son/daughter).
3. As per India tax laws, gift to daughter in law is subject to clubbing provision, i.e. any income generated on the gifted amount is considered as your income. Assuming your daughter in law is also an NRI, you may gift her through an account situated outside India to save some complications. Thanks.
hello
i want to ask in regards to payment made to non resident company in japan for consulting services. Manager of one company in japan is providing services in japan and providing us invoice in that company name in which he is am manager. and we have to make payment to him quarterly for $3000.so we are transferring this amount to that company’s account because bank denied to make payment directly to that person account. kindly guide me in regards to tds liability and how much amount to deduct tds and at the time of payment which from is to be submit i.e. 15CA & 15CB. Kindly reply me asap.
Thanks
Payment for Consulting Services may be treated as a fees for technical services subject to TDS. In that case, TDS needs to be deducted and payment can only be made after CA certificate in form 15CB and filing of form 15CA. Thanks.
Dear Sir,
15CA and 15CB are to be issued even when the payments are made in INR within India in Indian bank accounts by two Non resident (branches of foreign company)?
The nature of transfer is key. If the nature of transfer is taxable (interest, capital gain, business income), TDS needs to be deducted and recommended to issue form 15CB/15CA. Thanks.
Sir,
I have purchase land from NRI of US. I have paid the sale value in NRI NRO account. I have deducted TDS @20.80% and paid to income tax department. Now before filling the TDS return whether i as a purchaser of land have to file form 15CA/CB.
please guide me.
with regard
Vikash sinha
If the money is deposited in the NRO, it may be okay not to give 15CB/15CA as when the NRI seller transfers the funds out of India or to NRE, the bank would ask for the 15CB/15CA. Thanks.
Hi,
Kindly advise –To get back india tax refund on TDS which account to be mentioned?
NRE or NRO account.
Whether Tax refund can be repatriated and if so 15 CA or CB is required?
Thanks.
1. The IT refund can be deposited in NRO account only. So for online refund, NRO account is to be given.
2. Yes, the IT refund can be repatriated.
3. As the IT refund is after deduction of TDS, very few banks do transfer funds without 15Cb/15CA. However, Most banks would ask for the certificate. Thanks.
Hi Jigar Ji – This post was very helpful for me. I have to repatriate funds from my NRO account to my Australia bank account for family maintenance. I believe reading this post i will have to fill only part D. The source of the funds in my NRO is a mix of my savings plus deposits from my father and father -in law (total 10 lakhs INR) and i need this money in my australia bank account to pay house deposit and other expenses family related.
so is my understanding correct that i will only need Part D of 15CA. Also will i need declarations from my father and father in law to support my source of funds.
Eagerly waiting for your response
Regards
Sudeep
Yes, you are right. However, bank would not know whether the tax, if any, have been paid on the amount. So, they would ask for 15CB/15CA. If your father or father-in-law had given the gift to you or your wife respectively (son/daughter) from their resident accounts to your AUS account, it would be allowed with just signing a declaration (without 15CB/15CA) under LRS – Liberalized Remittance Scheme of RBI as gift to son/daughter. Thanks.
Hi Jigar – I am an NRI. I had sold an immovable property in India in July 2018 and have paid the requisite TDS. Now I am planning to transfer part of the sale proceeds from my India bank NRO account to my USA bank. Please see below instruction from the Indian bank regarding remittance of funds (received out of property sale) from NRO account to overseas bank account. Since I paid TDS on the property sale amount, can I just file Form 15CA Part D?
As per the Bank’s standard process, to transfer funds from NRO account to overseas bank account, Form 15CA Part C and Form 15CB are required. However, if customer or Chartered Accountant is of the view that income in NRO account is not chargeable to taxes in India or taxes has been already paid then an online declaration on income tax website in form of Form 15CA Part D can be accepted for transaction processing, Form 15CB would be not required in such case.
No. While TDS has been deducted, the bank would not know or don’t want to be involved with the correct rate of TDS or taxation. As you would be remitting proceeds of sale of property, which is a taxable transaction CA certificate in form 15CB and filing of form 15CA part C would be required. Thanks.
Dear Sir
Thank you for your informative posts and replies. Please take some time to answer my query.
I am Buying an apartment which is owned jointly by a mother(indian) – son(NRI) duo. The NRI has only a NRE account from which a payment of 1.25cr was made from US to buy the property in 2009.
1. Is it possible to pay his share of sales proceeds in this NRE account from my indian bank account after deducting TDS
2. Since no bank is ready to issue a loan cheque to an NRE account is it safe and legal if I arrange and pay directly and refinance from the bank. What are my safeguards I should ensure berore payment
3. His banker has said he cannot transfer the sale proceeds if deposited in his NRO ( if he opens one) to his NRE account. Is that correct
Thanks a ton in advance
Regards
1. Yes. Provided it is also accompanied by a CA certificate in form 15CB and filing of form 15CA. However, your bank and the seller’s bank need to agree. Please make sure and get the go ahead from both the banks before a cheque is issued. Also, TDS needs to be properly deducted and/or a lower deduction certificate to be obtained by the seller from his jurisdictional assessing officer.
2. If it is too much trouble, you can ask the seller to open an NRO account with the same bank where he has NRE account. And then, he can transfer from NRO to NRE account. It would be easier and a known transaction for everyone.
3. No. NRO to NRE is allowed. Thanks.
How to obtain CA certificate for transferring money from NRO to NRE??
HOw tedious is this process? any contact for Getting CA help from India??
You would need to contact your CA for the certificate. The tediousness of process depends on how clear are your transactions and income tax filing records. Please contact your CA or if you don’t have any, please contact us. Thanks.
Hi,
Is there any tax implication if we transfer 3 crore through electronic TT money exchange to india to my NRE account?
is there any limit send to india to NRE account.
Thank you.
There is no limit or tax consequences on transfer of your legally earned after tax (if applicable) official amount from your foreign account to India. You may transfer any amount to your NRE account. Also, you can transfer any amount without limit out of NRE account to your home country as well. Thanks.
Hi, I have redeemed the proceeds from sale of Shares to my NRO Acccount but the Depository participant would be issuing the TDS Statement along with details of the Cost/Sale price and details of TDS, STT paid etc. only by the end of the subsequent quarter. For NRIs to repatriate the proceeds to the NRE Account, Form 15 CA/CB is required. Considering that the TDS Statement would be issued only by the end of the subsequent quarter, does it mean that the proceeds cannot be repatriated till issue of the TDS Statement? What are the options available to the individual in such a scenario? Kindly advise.
Best Regards
A
1. As TDS returns are filed quarterly, you would get the TDS certificate only after end of the quarter not end of subsequent quarter.
2. While TDS certificate can not be issued, the amount would have been determined and deducted so you can ask your DP to provide the working and based on that your CA may issue the form 15CB/15CA. Thanks.
Hello Sir,
I am living in UAE since 05 April 2012. I am planning to return end of next year india. Is it safe to transfer all hard earned large money to my own NRE account. What is the limit on sending money to india to NRE account? Is it allowed to send one big amount in one shot? What are the documents do i need to keep it ready if any questions arises from IT after or before become resident of india. Also i have not stayed more 35 days in india every financial year from apr 2012 until now). Only i came for 1 month vacation. So I heard, once i will become resident of india next year i don’t have to pay tax income incurred on interest for first 2 years? is it true?
Please guide me all my questions would be highly appreciated.
Many thanks.
Kind regards,
Thomas
1. Yes, you can transfer all your money to your NRE account. There is no limit on sending money to India. Yes, you can send a big amount in one shot.
2. You would need to have the proof of your income/saving and the bank statement, if there is any question by the IT department.
3. If your money is in NRE account, you would be paying tax from the year of your return. However, interest on FCNR deposits is tax free for Not Ordinary Residents. However, the rate of interest is less and money would be in foreign currency. Thanks.
Dear Jigar Bhai
This is to request that one of my NRI client sold his agricultural land in India and the proceeds deposited in Bank and would like to transfer the funds to Abroad . If he wants to transfer this money from India to USA do he need to fill form 15 CB and 15 CA.
Thanks and Regards
Yes, as the proceeds are as a result of sale of property, which may result in capital gain, a taxable transaction, 15CB/15CA would be required. Thanks.
Hello,
If the sale of Rural Agriculture Land it is not considered Capital Asset. what tax will apply if no provision for Rural Agriculture Land for the purpose of 15CB?
Sale of Rural Agricultural land is Not an Income i.e. not taxable. Thanks.
can a person owener of co. in usa ,all tax paid in usa by co.- can transfer bank bal. of company a/c after desolving the company in to his personal a/c in india .
pls. suggest
After dissolving the company and paying all taxes, money can be transferred in your personal account. I would recommend to first transfer the money in a personal account in USA and then remit to India for convenience and clear money trail. Thanks.
I am US Permanent Resident. I have withdrawal my Employee Provident Fund from India. It’s been transferred to my NRO account. I wanted to transfer my EPF amount now to my NRE account.
EPF withdrawal is not taxable in India as it’s more than 5 years of continuous services in my case and also not even required to file in return as well.
As my EPF amount is not taxable, do I still need to get Form 15CA and 15CB to transfer it from NRO to NRE account?
If you can’t convince your bank to transfer without 15CB/15CA, you would need to get the forms. Thanks.
Dear Jigarji,
Can an NRI/Oci invest in NSC in order to avail benefit of section 80c.
Thanks
Vyomesh Shah
Post Office schemes are not available for NRIs so you are not allowed to invest in NSC for 80C. However, you can invest in 5 year tax saving bank FD and ELSS mutual fund to save tax u/s. 80C. Thanks.
Hi, one of client purchasing property from the NRI and making payment to NRI Savings account is my client need to file 15CA or 15CB please let me know
He would need to deduct TDS u/s. 195 at 20%+surcharge+cess if the NRI seller has not received a lower deduction certificate. Usually, 15CB/15CA is required when the money is credited in NRE or when transferred from NRO to NRE account. It may be okay not to issue the form 15CB/15CA. Thanks.
Hello Mr Patel,
My parents have moved to Australia with me. They have around 75 lakhs each in their resident accounts which they have converted to NRO accounts. Now they want to move everything from NRO account to NRE accounts. Bank manager has recomeended a CA to provide 15 C/A and 15 C/B, which I thought was the normal process. Now they are asking for a 1.04% as the transfer fees(apparently a flat fee charged by Govt of India). We agreed but the transaction on statement shows as a transfer to CA. We smell something fishy. Can you please advise: If there’s a fixed fee applicable apart from regular taxes which are applicable on the interests earned.
Thanks in advance,
I have never heard of a transfer fees of 1.04%. The CA would only charge a fixed fee as agreed between you and your CA. The Government only charges GST on the transfer fees charged by bank and is very small. I would recommend you to follow up and get more details about the transaction. You may approach the bank manager or his superiors or file a complaint. Thanks.
The resident of Canada having immovable property in India, government acquire that land and paid a lump sum amount to that person. Now he wants to transfer his money to Canadian Account, what is an impact on 15 CA Cb and is that income is taxable in India?
He would need to determine taxability of transfer of property, which is similar to an India resident. If taxable, TDS would be deducted or he would have to pay advance tax before he can transfer the funds to Canada. Also, CA certificate in 15CB and filing of 15CA would be required. Thanks.
Hi Jigar ji,
Can a Nonresident Indian remit funds out of India to purchase a property abroad?Funds he wants to repatriate is received out of mortgage Loan from a bank against immovable property in India.
Regards
The funds taken on loan can not be remitted abroad. It is not allowed. However, you are allowed to invest abroad under LRS of upto $250,000 per year. Thanks.
Firstly, I would like to commend you on being active and helpful on the comments here. The issue is quite confusing and the Indian government (out of habit, I guess) has made this relatively more complicated than it should be.
Here’s my situation:
I transferred money into my own Indian Resident Savings account from USA through Western Union (I still have this resident savings bank account which I need to convert to NRO). I recently got an NRE account now (which I am going to use going forward for all remittances from US to India).
Now, I have a relatively large sum of money in the Resident Account, which I would like to transfer to the NRE account (the source for this is from US, through remittances. I have the proofs for the same), so that I don’t have to pay taxes on the interest going forward.
Based on my understanding, I should convert my resident bank account into an NRO account, and then transfer from that account to the NRE account after getting the 15CA and 15CB certificates, although I am not sure which 15CA part is to be used. I have also accrued some interest on the money in my savings account. Does that change anything, and should I consider keeping the interest in the NRO account itself?
Also, would the delay in converting the Resident Savings account to NRO going to cause any trouble?
Lastly, is there any possibility to transfer from the resident savings account to the NRE account directly (without converting into NRO) and then close the account?
Thanks, and apologies for the length of the comment!
1. As 15CB would be required, only 15CA part C is to be submitted.
2. As an NRI, you are not allowed to have a resident account and must change to NRO within reasonable time of becoming NRI (going out of India).
3. You can either be a resident or an NRI. You can not be both. As a resident you are not allowed an NRO/NRE account and as an NRI, you are not allowed a resident account. So you may not be allowed to transfer the funds from resident account to NRE account.
4. The rules are not complicated if followed properly. If you had opened / converted your resident account to NRO account when you moved out of India, there won’t be any complications or trouble. However, many NRIs keep resident account for convenience to do transactions without any restrictions, for non deduction of TDS on saving account, non reporting of account balance and income to foreign government or out of ignorance.
5. In our experience, it is more of an ignorance than circumventing the laws and this is the main reason why we have this blog to educate and update the rules and requirement for better planning, compliance, have peace of mind and also to create and grow wealth legally. Thanks.
Dear Jigar,
Thank you for sharing your knowledge and expertise through this blog!
I am also in a similar situation and have some resident FDs opened out of ignorance. The FDs we’re funded via NRE remittances that I now wish to repatriate back to my NRE account.
Could you please shed some light on how this mistake could be corrected?
Can I just close the FDs and move the funds to a NRO account and then follow the procedure you have outlined for transferring the funds from NRO to NRE via forms 15CA and 15CB? Would the Bank require any additional paper trails and/or documents?
Thank you for the kind advice.
Regards,
Jaikumar
I would recommend that you convert your account from resident to NRO with the same bank and transfer the funds to NRE of the same bank so there is no issue. Thanks.
NON RESIDENT RECEIVES RENT AFTER TDS FROM HIS TENANT TO NRO ACCOUNT.
NOW HE WANTS TO REPATRIATE HIS FUNDS FROM NRO TO NRE ACCOUNT FOR PERSONAL USE.
CAN PART D OF FORM 15CA BE CHOSEN AS THE REMITTANCE IS TAX SUFFERED AMOUNT AND IS NOT CHARGEABLE TO TAX. OR WHAT NEEDS TO BE LOOKED INTO IS SOURCE OF INCOME.
IF PART C IS CHOSEN BASED ON SOURCE BEING TAXABLE , TAN OF THE REMITTER IS ASKED , CAN TAN OF THE TENANT BE ENTERED THERE ?
NATURE OF REMITTANCE AS PER AGREEMENT MEANS – SOURCE OF INCOME OR PURPOSE OF REMITTANCE?
1. As Rent is a taxable transactions and the bank would not know whether TDS has been properly deducted or not (30.9% vs. 10%), a CA certificate in form 15CB and filing of form 15CA part C would be required.
2. The remittance would be out of current income and savings. It would be you are transferring from your NRO account to your NRE account. You are the transferror and transferee. Tenant’s info may not be required.
3. Source of Income would be rental income (current income) and remittance would be after tax so no additional tax to be deducted/paid. Please contact your CA and your bank. Thanks.
Hi Jigar
Greetings
I am an NRI residing in USA. Just sold my flat in mumbai in Jan 2018 and paid full TDS at 22.88 % through the the buyer ,as have no intentions of investing in India. And would like to repratriate the funds to US . My CA needs the 16B from the buyer along with all other docs in order to file for 15CA CB
Now the buyers CA says that he is not able to obtain the 16B from the IT till the returns are filed in April ,whether my CA states ,that the 16B can be obtained within 15-20 days from the date the TDS is deposited
Can you please guide me here ?
1. I would assume the property was sold in Jan 2019 and not Jan 2018.
2. If a resident is selling the property, the TDS can be deducted and paid by form 26QB and TDS information is available very quickly.
3. However, when an NRI sells the property, while TDS can be paid immediately, the TDS return is filed quarterly i.e. in April for January-March 2019 quarter. As TDS certificate can only be available from the IT website after filing of TDS return, you would get the certificate only in April 2019. Thanks.
Dear Sir
First of all, thank you for this trove of knowledge.
My client has a NRO account in India, in which, due to some wrong advice by some one, he was sending money from UK and earning interest on it, and on which bank is deducting TDS at 31%.
Now he opened NRE account with the bank and want to transfer all funds from NRO to NRE account. The bank is asking for 15CA and 15CB.
Kindly guide as which income is taxable in India and tax at what rate is to be paid, and what all things should be kept in mind while filling form 15CA and 15CB.
Thank you.
Regards
Rahul
There is no additional tax needs to be paid. Tax is already deducted so it would be like transfer of own funds / savings. No additional tax. Thanks.
Hello
My client got UK citizenship in 2016 and he tried to convert his savings accounts to NRO accounts. But due to some issue in the name as per passport and bank records, bank did not convert the accounts to NRO. As a result, they are still savings account. The issue can be sorted only when the client next visits India.
Bank is deducting TDS as normal on these accounts. His income from India is below 2.5 lakhs. Now he wants to file ITR to claim refund, or declare his income. Should he go ahead or should he first wait to convert the accounts to NRO?
Also, if in another case, NRI has 2 NRO accounts but still has 1 savings account left, although with no transactions and just 1 FD, is it safe to declare such savings account in ITR and file for refund?
1. If the names are different, you may have to submit more proofs of old and new names and convert to NRO account. You may ask your client to provide a notarized copy or any other procedures as required by bank to declare one correct name in bank as well as passport. I don’t think physical presence is required but you can contact higher authorities or the NRI desk of the bank to understand and sort out the problem.
2. You would report all accounts and include all income whether account kept as resident or NRO or NRE while filing tax return. Thanks.
Dear sir,
We have bought a property from NRI.After deducting respective TDS the payment for the same is made to the agent of NRI, who has executed the sale through power of attorney on behalf of that NRI. The payment is made to the above agent in Indian currency whether I need to give 15ca and 15cb as I’m subjected to tax audit in current Previous year.
It is better to give the 15CB and 15CA as you have deducted the TDS. However, if the money is deposited in the NRO account and the NRI would transfer the funds from NRO to NRE account or outside India, the bank would not transfer the funds without 15CB/15CA. At that time, he would need to provide the same. However, in your case, I would recommend to consult your CA. Thanks.
Dear sir,
We have bought a property from NRI but the sale has been executed through agent (Power of attorney). The purchase amount has been paid to agent in indian currency after deducting the respective TDS on capital gains.whether i have to fill form 15CA and 15CB for payments made to NRI as we have bought the property owned by them.Kindly guide me as i am subjected to tax audit in Current P.Y.
Hello Mr. Patel,
I sold a site in March, 2019 in India. The TDS was paid by the seller. I have the funds in my NRO account. The bank is requiring the 15 CA/CB forms for repatriation of funds from NRO account to my NRE account. The CA is saying that 15 CA/CB is not required anymore and he has given a CA certificate about the sale. The bank is insisting on 15 CA/CB to complete the process. Is 15 CA/CB required? Are both of them required or just 15 CA enough?
Thanks.
As the funds in NRO account is due to sale of property resulting in a taxable capital gain, 15CB/15CA would be required. Thanks.
Sir,
I have an NRO and NRE Account both. I want to transfer my money from NRO to NRE which i received from Plan Mature after 10 years which is more than RS 500000 and between years i received no interest and
i made yearly installment of this plan from NRO Account So i want to confirm should i file Form 15 CB and which part of 15 CA? Kindly Explain
The maturity amount may be taxable. I would recommend that you file the tax return for the year in which you received the amount. Also, 15CB/15CA would be required. If you don’t file tax return and just file 15CB/15CA, you may get a query. Thanks.
Thanks for the wonderful post on this unclear topic. I moved outside of India last year and all my savings investments in India. I have primarily money in Shares, Mutual funds, FD and PPF money. I’m a regular tax payer and all of these investments are from my salary income.
I’m opening a NRE account now and would like to transfer all my investments into it. What is the best way to do this? Do I need to sell everything in shares and mutual funds and dissolve FD into savings cash before I do this transfer? Shall I sell above investments and pay the capital gains as applicable and pay the IT tax in July. After it only convert the NRO and then process the NRE transfer?
If you want to invest from NRE, you would have to sell everything, transfer to NRE and invest again. However, you may not be able to invest in PPF as PPF is not for NRIs. There is no additional benefit of selling Shares and MF as the taxation treatment is the same, unless you have very high investment (over 7 Cr) that you can not transfer in 1 year when you need it. For FD, I would recommend prematurely withdrawing and transferring funds to NRE and having NRE FD as interest on NRE FD is exempt from tax in India. Thanks.
Thanks for your responses. A follow-up question –
Once I sell my shares and the debt funds and redeem into cash which will be like one CR or so, how can I then bring that cash into NRE account or remit to outside India easily?
You will need to contact your CA for providing CA certificate in form 15CB and file 15CA and complete certain procedures for transferring money from NRO to NRE account. Thanks.
Hi Jigar,
Thanks for the wonderful information.
I am an OCI holder, migrated to India 3 years back and worked here with salary being paid to NRO account. Now I am moving back to UK, so would like to transfer the money from NRO to NRE. The bank is asking for 15CB/15CA certificates. Is that really required? My CA started the procedure for these certificates and planning to fill all 4 parts of 15CA. Your documents seems to suggest all parts are not needed. Could you please let me know which part I should fill and what should be purpose code as I have paid TDS as part of salary.
Thanks
Yes, you would need a CA certificate in form 15CB. For 15CA, you would only need part C. There is no need for other parts as they are mutually exclusive, i.e. you can use only 1 part for a specific purpose and if you choose that part (go that route), you can not use other part. In your case, you would be transferring your savings of last 3 years out of your salary and other income, so I would use that code. I hope this helps. Please let us know if you have any question or want us to help you for remittance. Thanks.
Thanks Jigar,
It is weird that even banks are confused in these matters. For example, in my wife’s case they opened an ordinary resident account and repatriated the money without any forms! I will come back if there are more queries. Thanks a lot for your help.
Regards
Sathish
What is the validity of the forms 15CA/CB? i.e. after my CA submits the forms to the bank, how long do I have to make the remittance?
Usually it is 6 months. However, it would depend on the bank. Also, if the forms are submitted, bank will remit the funds. However, if you want to time the remittance, I would recommend to transfer the funds from NRO to NRE account first and then remit the funds outside India. Thanks.
Hi,
For a private limited company registered and operating in India, if we purchase some online Google Form Addon from some foreign company is it taxable?? What is the threshold limit?
I would think it is a payment for technical services and as a result, TDS may be applicable. Also, GST on reverse charge may apply. Please check with your CA. Thanks.
Dear Mr Jigar
I am in New Zealand since last 23 years. I am a retired teacher and getting the pension in SB NRO account. I have been using the money whenever I visited India. Now I want to transfer the money in my Canara Bank SB NRO account to New Zealand. The Balance is under INR 500,000. The bank told me to furnish a Certificate from Chartered Accountant Form 15 CA + Form 15 CB + Form A 2 + ANNEXURE TO CIRCULAR NO.FX/41/2016 DATED 29.04.2016 Application for Remittance by Non Resident Indian/Person of Indian Origin/Foreign National out of the assets in India acquired by him/her by way of inheritance/legacy/settlement with supporting documents in duplicate.
The Bank is not able to understand that Certificate from Chartered accountant is not required and only Form A 2 is needed. I don’t have any assets in India or money from its sales. Can you please upload the relevent notifications so that I can forward it to my Bank and also please advise next course of action.
Regards
Urmila
As your income is Pension, which is taxable in nature, a CA certificate is required for transfer of funds from NRO to NRE for amount exceeding 500,000. However, if you transfer less than 500,000, you can do it without CA certificate 15CB, but you would need to provide the form 15CA part A. Thanks.
Dear Mr. Jigar,
Thanks a lot for running this informative pro-bono service. Can I seek your advice on 2 aspects:
a) I am a NRI and receive interest on Taxfree bonds (i.e. interest are taxfree) in my NRO account (bonds were purchased when I was a resident). If I want to transfer this interest from NRO to NRE, what are the documentation requirement.
b) I also have some NCD (which I purchased while I was a resident). When these NCDs mature/redeemed, I will receive the face value in my NRO account. These will be non-taxable as it is just the redemption of the face value (I got these NCD through initial offer). If I want to transfer this redemption of NCD from NRO to NRE, what are the documentation requirement.
Thanks a lot in advance. regards,
I would request you to file your income tax return reporting all the income – both taxable and exempt. If you do, just contact your CA and bank to issue you a CA certificate and transfer the funds. You are allowed to transfer upto $1million out of your savings every year. Please also contact your bank and understand the procedures and documents required. I think, only 15CB/15CA, bank statement, Form A2, a declaration / application (bank) and proof of investment/redemption would be required. Thanks.
Hello,
I have submitted a form 15CA (Part D) on the IT online website, and received an Acknowledgement Number.
What is the process after this step? Do I have to wait for the IT department to approve, and if yes how many days can it take for this to occur?
Or can I simply send the submitted copy of the Form 15CA to my bank for initiating the transfer/remittance of funds?
Thanks
Sanjay
Form 15CB/15CA are to be submitted / informed to the IT department. There is no approval required. You just need to send the acknowledgement to the bank and provide all other documents as required by the bankk. Thanks.
Thanks for the helpful article about the foreign remittances.
I am a Non resident and I have sold the property on 8th July 2019 in India through a Power of attorney and the sale price is less that 50Lakhs INR and also there are no capital gains, so TDS is not applicable. But I need to transfer funds from NRO account to NRE account. The bank is asking for Form 15CA & 15CB. But since the tax is not applicable, still I need to get the Form 15CB – CA certificate for the remittance or only Part D of Form 15CA is enough? Please advice.
1. TDS is applicable as you are an NRI. TDS would not apply of if you receive a No / Nil deduction certificate from your jurisdictional income tax officer.
2. As sale of property is a taxable transaction, 15CB-15CA would be required. Your CA may mention that the tax not deducted as there was no capital gain. Thanks.
Dear Jigarji,
I would appreciate if you kindly let me know the following.
1 I an Nri and my wife is resident in India I wish to send her amount directly for abroad to her savings account in India as I do not have any Nre account in India right now.
2 secondly I purchased property in India in March 2015 by borrowing amount from my wife savings account and deposited that amount in my CCSDL account ( CCSDL account is the account whereby I have a line of credit in Indian rupees as I have mortgage my FCNR deposit) and I issued the cheque from that account to my seller now I want to sell this property please guide me the procedure how to sell it and how the proceed can be deposited and tax liability.
thanks
1. It is okay to send the money directly to her savings account in India.
2. As an NRI is selling the property, the buyer would deduct the TDS at applicable rate. The tax liability would depend on the capital gain income. Once TDS is deducted / income tax is paid, you can take the money back to your resident country after 15CB/15CA procedures. Thanks.
Dear Sir,
My friend has both NRE and NRO account. He had instructed the bank to open an NRE fixed deposit by transferring amount from NRE account. But the bank mistakenly opened an NRO fd account. They had credited the interest amount and debited 100 % TDS there on.
Now he wants to convert the NRO FD to NRE FD. since 100% tds is deducted on the amount of interest there is no taxable income to be transferred , only principal amount has to be transferred.Would you please advice me for this part D of 15CA is enough? Or 15 CB is also required?
I would recommend that you contact your bank and understand their requirement. They may not require the 15CB/15CA if they are sure of no tax implications. Based on response from bank, submit the forms. Also consult your CA. Thanks.
Thank you Jigar for this wonderful informative post. Request you to Please help me with this query:
We have an LLP in India and want to pay a Sales Person in South Africa (Amt < 1 Lakh per month) who will be working as an Independent Contractor in SA, Do we need to fill forms 15 CA/CB ? Are there any Tax obligations on our company in India? Please advise.
Regards
If you pay sales commission to an NRI party who has no business connection in India for providing services outside India, there is no TDS. However, you may have to submit form 15CA part D for the same. If any of these conditions do not meet, you may have to deduct TDS and get CA certificate in form 15CB and file form 15CA part C. Thanks.
I did a self cash withdrawal of about 20lacs in 2010 to help out an uncle in medical need. The funds were withdrawn from an NRE account as I am NRI. My uncle wants to give the amount back in cash now. I am wondering if it is possible to deposit this cash to an NRO account and then transfer them to the NRE account. What is the legal procedure and are there any tax complications to be aware of?
Thank You!
Yes, you can deposit the money in NRO. However, please be ready for a notice from income tax department. The IT department issues notices to persons depositing cash of more than Rs. 10 lakhs a year in their savings account. As you have withdrawn from your NRE account, it would be okay. However, you would also need to ensure that there is a cash trail from your uncle’s bank account as well. Thanks.
I’m an NRI staying in US. I have NRO and NRE accounts in the same bank in India. My father-in-law who is a resident deposited 30 lakhs to my NRO account from his bank as a gift to son-in-law. Now if I need to transfer that money to NRE account, do I need to submit Form 15CB and Form 15CA considering this is a relative gift?
1. Technically, your father-in-law can not give gift to you as you are not his relative under FEMA. He can only gift to his daughter i.e. your wife.
2. I suggest that you return the funds back to your father-in-law as loan.
3. Your father-in-law gives gift to his daughter (your wife) and money can be transferred from his resident bank account to your wife’s US bank account. Under LRS – Liberalized Remittance Scheme, a resident is allowed to remit funds of upto $250,000 per year (including gift). Thanks.
Thanks for your reply. But in one of the bank FAQs I have seen this and as per them father-in-law to son-in-law is s valid relative for LRS. Below is the copy paste from that bank.
Can a resident individual make a rupee gift to a NRI/PIO who is a close relative of resident individual, by of crossed cheque/electronic transfer?
A resident individual can make a rupee gift to a NRI/PIO who is a close relative (viz spouse, parents, step-parents, son, step-son, daughter-in-law, daughter, son-in-law, brother/sister, step-brother/step-sister) of the resident individual [relative’ as defined in Section 2(77) of the Companies Act, 2013] by way of crossed cheque/electronic transfer. The amount should be credited to the Non-Resident (Ordinary) Rupee Account (NRO) a/c of the NRI/PIO and credit of such gift amount may be treated as an eligible credit to NRO a/c. The gift amount would be within the overall limit of USD 250,000 per financial year as permitted under the LRS for a resident individual. It would be the responsibility of the resident donor to ensure that the gift amount being remitted is under the LRS and all the remittances made by the donor during the financial year including the gift amount have not exceeded the limit prescribed under the LRS.
Sorry, father-in-law can give gift. Brother-in-law can’t. If your father-in-law is remitting money, he can do it in LRS but as you are an NRI, LRS does not apply to you. And, if you are remitting money, bank may ask for 15CB/15CA. Thanks.
Yes, as I stated earlier, my father-in-law was already deposited into my NRO, now for me to transfer that from NRO to NRE (not transferring to US account), bank is asking for Form 15CB/CA. So, I’m checking with you is that necessary or bank is not aware the process and they are just asking this for the sake of clarity.if they are necessary, as Form15CA is an individual’s form, so who should file Form15CA?my father-in-law or myself?
As the money is in your account. you would need to do all the process (i.e. yo would file 15CA from your IT login). As bank would not know the taxability of the money, they would ask for 15CB and 15CA. You may ask your in-laws to give gift from their resident account directly to your US account under LRS. Thanks.
Hello Jigar,
My mother from India would like to transfer money as a gift in to my Canadina bank account in Canada as I am Canadian citizen. Does form 15 CA/CB is required? Bank is asking for the same.
If the money comes directly from your mother’s resident saving account to your Canadian account, 15CB/15CA is NOT required. However, if the money is credited in to your NRO account, the bank may ask for 15CB/15CA as the remitter changed from a resident (your mother) to an NRI (you). A resident is allowed to remit upto $250000 (1.75cr) per year outside India, including gift to children. Just ask your mother to transfer the amount as gift under LRS – Liberalized Remittance Scheme of RBI. Hopefully, the bank manager would be able to do it. If any issue, please contact us. Thanks.
Hi Jigar-
In 2018 May I moved to Canada, when I visited India in early 2019 I converted all my resident account to NRO. Every year I have been paying taxes on my interest earned in the banks. I do have a rental earning for which I also pay taxes along with my interest earnings. Since I am required to pay in India as well as in Canada it has become quite tedious. Moreover, Income used in tax collection is different hence more problems. Since Now I wish to convert all my NRO accounts into NRE one. The problem is that I have FOUR bank accounts hence how do I have to have 4 sets on 15CA CB?
1. You can combine funds of 4 banks into 1 bank and then transfer the funds to NRE account with just 1 15CB/15CA.
2. Transferring money from NRO to NRE would not affect your problem of paying taxes and claiming rebate in Canadian tax return as you would continue getting rental income in your NRO account and you would need to file the tax return if income is more than 250,000 or you want to claim the TDS on rent as refund.
3. Only the benefit would be the interest on NRE bank account would become exempt and no TDS would be deducted on the same.
4. Please note that every person (tenant) is required to deduct TDS @ 31.2% on the rent amount before making rental payment to an NRI. Else, we recommend filing tax return, even if the rental income is less than 250,000. Thanks.
Thank you for the clarification. As I am paying taxes on my NRO Deposit interests I will be required to fill 15CA Part C and 15CB by my CA. Is it correct?
Yes. For any remittance out of NRO account, 15CB/15CA may be required. Thanks.
Hello Jigar,
Thanks for your valuable info in this blog.
I am a US citizen with OCI. I returned to India 7 yrs back on a permanent basis. I am a tax resident of India and US and file both returns. Am I permitted to open a demat account in India and trade in NCD? How is a demat account reported in FBAR?
1. An NRI is allowed to have a Demat account. And, Demat account is required to be reported in the FBAR and FATCA.
2. An NRI is allowed to invest in NCDs subject to certain conditions like interest rate, tenure, issuer, use of funds, etc.
2. However, trading in NCDs may not be allowed as companies issuing NCDs would need to comply with RBI rules and reporting requirements. In trading, company issuing NCD or the NCD itself may not comply with the conditions / requirements and as a result trading of NCD may not be allowed. However, I would suggest you check with the DP or trader for the same. Thanks.
Query is regarding Transfer of Funds from NRO ACCOUNT TO NRE ACCOUNT. We have filed PART D OF FORM 15CA and we made the submission to the bank. Now the bank is asking for FORM 15CB as well.
Is it actually required???
Also if FORM 15CB is to be submitted then PART C OF 15CA is to be submitted or Part D of 15CA which is already filed is proper.
Also in Form 15CB they ask whether remittance is chargeable to tax in India :- For which we need to write NO right? Kindly clarify.
1. Part D is when the nature of transfer is not taxable. If the money is in NRO account, only CA is authorized to say whether it is taxable or not.
2. As Banks are responsible to make sure that the tax has been paid before remitting money, they insist on CA certificate in 15CB and 15CA.
3. 15CB is to be completed by the CA so you let your CA worry about the same. However, it is important that you talk to both your CA and your bak to get the soultion which is to transfer from NRO to NRE. Thanks.
Hiii Jigar…
I have 1 cr in my NRO account which I want to repatriate to my NRE Account… I have the following queires, kindly clarify:
(1) Since I transferred from My NRO to NRE account, whether 15CA CB required?
(2) And If so, Can I transfer 1 crore rupees from NRO savings account to Nre saving account (somewhere I read that one can’t transfer more than 1 million in a financial year And if so “RBI permission reqd”–kindly clarify this how to get RBI permission)
(3) If I submit my 15 CA CB today on IT website, how many days it will be valid so that I can do my bank transfers(any time limit)
1. Yes
2. 1 million is in USD which is about 7 Cr INR so you are okay to remit 1 Cr.
3. There is no timelimit of 15CB as you can mention in 15CB proposed date of transfer. I would recommend transferring money within 1 month from the proposed date of transfer mentioned in the 15CB. I suggest submitting forms and documents to bank for transfer within 1 month. It may be okay if the bank takes some time in review and verification. Thanks.
Dear Jigarji,
I would appreciate if you kindly answer me the following
1 if a foreign national residing in India i.e resident of India if she make foreign trip
and secondly if she buys foreign exchange (i.e basic travel quota) in this both cases is it mandatory to file income tax return even if she doesn’t have any taxable income ?
Thanks
sangita shah
No. Thanks.
hello sir i live in india and planning to purchase a property in india from a NRI for 70 lacs. as no capital gain is applicable the NRI sugest that i can make payment by filing form 15ca part c and 15cb. and form 13(no or lower deduction certificate from AO) is not required. is this correct?
I am not sure why there is no capital gain on sale of property by NRI. Income tax does apply. I suggest you contact YOUR CA and understand the requirements. Thanks.
hi sir,
i will make payment of rent to NRI in NRO account below Rs.5,00,000/- can i have to file PART A OF FORM 15 CA?
HOW CAN I FILE FORM 15 CA?
You need to deduct TDS @ 31.2%. Thanks.
Dear Jigarj
1 My mother is foreign national residing in India (resident of India) holding oci card
is it essential for her to link aadhar card with her pan card?
2 I am foreign national residing in Canada ( i.e non resident for Indian tax purposes)
I gave loan to my brother from my nre account now he wants to return it can I deposit the same amount in my nro account. What shall be the tax liability when I earn interest from nro account and what is the tax exemption available to me.
can I file IT return from abroad
Thanks
puja shah
1. Yes, as she in an Indian resident.
2. Tax is only on income. If you earn interest, you would include it in your income tax return. Also, your brother would be required to deduct TDS. If your brother does not pay you any interest, there is no income and no tax liability.
3. Yes, you can file an IT return from abroad. You are required to file the tax return if your income in India is more than 250,000. Thanks.
Case Study
Party A :- Hong Kong Resident Co.
Party B :- Indian Resident Co.
Party C :- Customer of Party B( can be resident of any Country )
Now there is a Agreement between Party A & B of freight Forwarding. B acquires the business of transportation of goods from one country to another Country. Now B passess the Business to A and in return B will charge a commission for the same as agreed in the agreement.
Before the Movements of Goods A sends the invoice and Bill of lading to B for payment of freight Charges and B send the invoice to C of same amount.
So for B to remit the funds to A bank of A ask for 15CA/15CB.
On Quarterly basis B will raise the commission invoice to A for the income.
Also A is not the shipping Co. A also forwards the business to Other person.
Like Wise B has Same agreement with 2 to 3 Parties of Hong Kong.
1. There is no question so can’t specifically answer. But, replying based on my understanding.
2. I would recommend that the shipping company charges directly to Party C as the invoice amount is the same and then internally, you charge commissions. If the invoice amount is different, you fear that the price is known to the party C who can directly approach shipper but in your case, the shipper knows whose goods are being transported so if he wants, he can approach the party C directly. This will clear all your issues regarding outward remittance. However, you may need to check the issues related to transfer pricing. Please contact your CA. Thanks.
Hi Jigar,
Need quick help with my situation.
I am an NRI working in Canada. Last year I transferred 50 lacs to my indian account for a business deal. However, the deal didnt work out that well and now I am trying to get the money back to Canada.
Since the source of funds is not indian income do I still need to go through the hassle of Form 15 CA and CB. I dont know any CA in india personally so it is going to be a big challenge to a get a CA to do this for me.
Please help.
Thanks,
Manish
1. If you investment in a business on repatriable basis under FDI laws, you may be able to remit the funds directly to Canada.
2. If you invested on non-repatriable basis, the money can only be credited to NRO account and 15CB/15CA would be required for remitting money out of NRO account. Thanks.
Hello,
I am transferring from my NRO to my NRE account . In this case, on Form 15 CA and 15 CB What would we put as the Country & Currency of Remittance.
Your answer is much appreciated.
Country would be India. For Currency, it would be INR. However, you may need to convert into foreign currency USD as the limit for remittance out of NRO for NRI is $1 million. Thanks.
In Form 15CA Nature of Remittance- what is to be stated ?
What is the Relevant Purpose Code as per RBI and sub code may plesae be answered and appreciate your help in this Regard.
This is for transfer of funds from NRO to NRE account in the same bank. I filed my IT Returns up to date. ITR 2
Thanks
Narayan M
Please use the correct purpose code. If it is for general purpose, you may use family maintenance and savings. Thanks.
Hi,
A foreign company is making a payment to another foreign company from a foreign bank account. However the payment is chargeable to income tax in India, so they need to file form 15CA and 15CB. For deducting the TDS, they will be obtaining a TAN. They do not have a PAN in India. Is it compulsory to have a PAN in order to file 15CA?
Can it be done using the TAN? If yes, then how?
1. I am not sure how any payment by a foreign company to another foreign company from a foreign bank outside India would taxable in India.
2. Anyhow, if TDS is to be deducted the payer foreign company can deduct and pay the TDS with TAN. No PAN is required.
3. However, the PAN would be required for the receiver foreign company because if the payment is taxable in India, the company needs to file tax return in India and income needs to be assessed in Indian and would need PAN. Thanks.
Sir, i’m a non resident indian and sold a property held in india to residents indians and sale consideration is deposited in NRO a/c. Now, i want to transfer the amount to my NRE a/c. When at the time of payment of consideration, buyer of the property deducted TDS @20% and i’m also have PAN.
But, the banker is asking form 15CA. And the amount to be transferred is more than 5 lakhs.
Please clarify the following:
(i) Which part of Form 15CA is required and what is relevant purpose code of RBI?
(ii) Since the TDS is already deducted, now it is exempted income or taxable income?
(iii) form 15CB is required or not?
(Long term capital gain on sale of building)
You would need a CA certificate in form 15CB and file form 15CA part C. It would be like transferring your money from your one account to your another account. There is no additional tax to be deducted or paid. Thanks.
Hello Sir,
I have to transfer 12 lakhs rupees from my NRO account to NRE account for family maintenance and savings . Point number 26 in specified list of exceptions.
The amount has been taxed in India, Do I need to file Form 15 CB and 15CA online?
Yes, as the bank would not know that you have paid the taxes. Only CA can certify the same. Please contact your CA. Thanks.
Hello Jigar ,
Please clarify on the meaning of “Individual” in the statement (refer CBDT notification 93 of 2015 dated Dec 16, 2015)
“No Form 15 CA and 15CB will be required to be furnished by an ‘individual’ for remittance which do not requiring RBI approval under its Liberalised Remmittace Scheme (LRS).
Who is considered as the “Individual”?
Resident of India or Non Resident of India (NRI) or both?
Where can I see the definition of “Individual” in Income Tax Department
documents in this context?
Thanks,
Hara
Both Residents and NRIs are included in the individual’s definition. However, as LRS is for residents, in the context of LRS, I would interpret individuals as only residents. Thanks.
Hello
I am a tenant (Resident Indian) paying rent into a NRO account of the Landlord who is an NRI . The annual amount is >5 lacs
I am deducting TDS @ 31.2% each month and have filed Form 27Q for the Quarter. Do I need to submit Form 15CA / CB? As i am not really remitting money outside of India. Can you please advice
If the money is deposited in NRI tenant’s NRE account, 15CB/15CA would be required. But I think the money is being credited to the NRO account, so it is okay if you don’t. Thanks.
Hello
I am an NRI living in the UK along with my wife who is also an NRI living in UK.
We have been living in UK since 2005 & have been sending money from UK to our NRO account in India since 2006.
We opened NRE account in 2014 & since then sending money from UK to our NRE account. We are planning to transfer the existing money from our NRO to NRE account; all our savings in NRO A/C are from our salary in UK transferred to India. Both our NRE & NRO accounts are with SBI.
1. What forms do we need to compkete amd submit to the bank?
2. Do you provide similar service in obtaining this type of transfer & assissting in completion of 15CA, 15CB & any other relevant forms.
3. If yes, What will be your charge for this & what documents do we need to provide and what steps to follow?
With regards
Samrat
1. You would need a CA certificate in form 15CB and file form 15CA for transferring funds from NRO to NRE account.
2. Yes, we do.
3. Our fees depend on complications and availability of documents required. Please Contact us. Thanks.
Sir I want to ask that, If I availd service from Netherland advocate and service is delivered Netherland and only payment is made from India approximately Rs. 32,00,000/- This amount is chargeable for TDS or Not In form 15CB
I think the service is included as the fees for technical services and if the same is for the benefit of an Indian entity, TDS may apply. However, please contact your CA with details of your case. Thanks.
I need a certificate to submit in bank to remit fund as we booked space for cargo. what documents u required and charges
I think this would be part of your business so, I suggest you contact your CA. I would be easier, faster and cheaper. Thanks.
Hi Sir,
I have taken flat on Rent from NRI & deducted TDS @ 31.20% rent aggregate amt is below 5 Lacs , rent is paid in INR, do i have to fill Form 15CA ?
if yes what option to be selected in RBI Purpose Code?
Pls Guide.
Thanks.
I would think that the rent is being deposited in the NRI’s NRO account. So, it would be okay not to issue 15CA as the NRI would need 15CB and 15CA while transferring funds from NRO to NRE. However, if the rent is being deposited in the NRE account, 15CB/15CA would be required. The purpose code would be related to current income – rent and TDS applicable rate would be 31.2%. Thanks.
a NRI person(British Resident) has agriculture land compulsory acquired by govt of Gujarat and made payment of RS 1 Crore now he wants to transfer this amount to UK in his own account.
Now what are the tax implications? any RBI permission required?
As long as the NRI British citizen acquired the agricultural land as per FEMA i.e. acquired while an Indian resident or inherited, it is okay to remit the funds out of India. Also, if the agricultural land is a rural land, there may not be any capital gain. If it is an urban land (withing certain km), it may result in capital gain and the money can be transferred only after TDS is deducted or income tax is paid. Thanks.
Hello Sir.
After having worked in India for 15years, I’ve now relocated to Germany on a salaried job. I’ve converted my savings bank account to NRO and opened an NRE account as well.
I’m looking to transfer funds from NRO to NRE account and I have following questions.
1. All the funds in my NRO account is from my salary and FD interest, for which taxes are all paid up in all my years of service in India. In this case, are we still required to submit Form 15ca/cb?
2. In the flow-chart the very first question is, “Is the payment to NRI chargeable to tax?”. How and who determines taxable aspect of this transfer? In my case, this is funds tarnsfer between self accounts and taxes are all fully paid up.
3. As per Rule 37BB, reason code “26 – Remittance by non-residents towards family maintenance and-savings” is exempted from prior approval of RBI and does not require submission of 15ca/cb. Is this correct understanding?
4. With this understanding, I approached my bank (HDFC) and they ask for Form-A2 and insist on Form 15ca/cb as well. To make it even more confusing to me, purpose codes in form A2 are totally different from Rule 37BB. Can you please clarify how to approach in my case?
Before money is remitted out of India, bank is required to ensure proper payment of tax. And, they rely on CA certificate for the same. While you have paid tax on prior income, you may not have paid tax on current year’s income (after migrating to Germany). It is not possible to know which amount you are transferring. Also, if just by entering a purpose code, there is no requirement of 15CB/15CA, all NRIs would enter the same code. I would recommend that you contact your CA for 15CB/15CA and your relationship manager to make sure the money is transferred from NRO to NRE account. Thanks.
I would like to transfer my NRO account to my account outside India to dollars. But Canara Bank want me to file not just 15 ca cb and a2 but also an ANNEXURE TO CIRCULAR NO.FX/41/2016 DATED 29.04.2016 April asking how money was acquired for buying the house in 1984 etc. I sold the house I bought in 2022. If they ask how I got the money to buy in 1984 as an NRI out of NRI funds, I am in a mess as I have no records. What do I do
Hi,
It has been an old requirement that the NRIs are allowed to remit the funds out of India on sale of assets bought in compliance with FEMA (erstwhile FERA) regulation. Now, the banks have started implementing it. Unfortunately, not a practical way but technically, you need to have proof either that you were a resident when you bought the property or you bought from NRO or NRE or by remitting funds from abroad. Thanks.