CBDT vide notification 67/2003 revised the rules and procedures AGAIN for payment to NRI. And this time, for good. The updated rule will also be effective from October 1, 2013. I hope they do not change the rules again.
1. As per the revised rule, Form 15CA/CB is applicable only if a person responsible for paying to a non-resident, any interest or salary or any other sum chargeable to tax under the provisions of the Act.
It means, NO CA Certificate in Form 15CB and NO furnishing of Form 15CA to the Income Tax department for any payment or money transfer out of India that is NOT Taxable.
As a result, Form 15CA/CB may not be required for the transfer from NRO to NRE or for outward remittance from NRO funds. However, I am not sure who will take the responsibility to determine if the transfer was of funds taxable in India and whether taxes have been paid.
THIS IS HUGE for NRIs…… Let’s hope that it is not changed again…
2. For the nature of the payments contained in the “Specified List” (nature changed from 39 to 28), No information to be submitted, i.e. No CA certificate in Form 15CB and No Form 15CA.
3. For payment that is taxable but does not exceed Rs. 50,000 or aggregate of payment does not exceed Rs. 250,000 in a financial year, Only Form 15CA Part A to be furnished.
4. For any other payment, updated CA Certificate in Form 15CB to be obtained and revised Part B of the Form 15CA to be furnished to the Income Tax department.
5. Please note that the Form 15CB required detailed information (Income Tax provisions, DTAA Article, TDS rate, amount, basis, etc.) as mentioned in my previous blog. For Form 15CA, the part C of the Form 15CA in the earlier notification has been made Part B of the Form 15CA after making related changes.
Summary:
If this notification is not revised before it becomes effective on October 1, 2013, this is a VERY Welcome step by CBDT and will lift a lot of tension or burden from the NRIs. Ofcourse, Chartered Accountants would lose some revenue… 🙂
Please click here to review the notification 67/2013.
(edited on April 25, 2014)….
It appears that banks are still requiring 15CB/15CA evenif they may not be required. If you are having ANY problem with NRO to NRE transfer, Contact Us and we will help you get your money in the NRE account. Thanks.
The rules and procedures have been revised again. For the latest procedures and requirement as on April 1, 2016, please visit my recent blog 15CB, 15CA Procedures Updated: Understand new procedures applicable from April 1, 2016.
Dear Mr. Jigar,
Thanks a lot for posting this valuable information.
I had made few Fixed deposits in Dec-2011 in my NRO account to enjoy higher interest rates prevailing at that time, however, the money came entirely from my NRE account for making these FD’s.
Now, upon maturity, I would like to transfer these FD’s maturity proceeds to my NRE account (the same account from which the money came earlier for making NRO FD’s). For making this transfer possible, can you please confirm that no form 15CA/15CB is needed now by the Bank (although SBI is still asking for it for transferring the funds from NRO to NRE account) after 01st Oct’13 per CBDT notification 67/2013. Would really appreciate your inputs on this?
Dear Girish/Jigar,
Unfortunately,I am also facing the same issue with SBI. My case is exactly similiar to Mr. Girish.
Appreciate if you can clarify and also how to notify SBI about this change.
Fortunately, ICICI Bank has clealry stated that NRO FD can be transferred to NRE Account with only a Request letter if NRO Deposits are funded through NRE accounts. When I have referred about ICICI’s reply in this case to SBI NRI Division, still they say you need to furnish 15CA/15CB.
Honestly banking with SBI has become difficult for me always.
Thanks
I think SBI NRI may not want to commit anything before it becomes effective as it can be changed again. Please followup after October 1, if there is no additional change/notification.
Dear Mr. Jigar Patel,
Thanks for the reply.
Can you tell the CBDT Notification details, number, dated etc., where you said that 15CA/15CB may not be required after Oct 1 2013.
Thanks
CBDT Notification 67/2013 dated 2/9/2013. Link already in the blog. Thanks.
My question to you is if the person covered under the apecified list but is required to pay tax AND the total aggregate amount for the whole year is Rs. 50000 only should he file the information in PART A OR PART C OF 15CA
Specified list is for nature of payment and not related to person. If the nature of payment included in specified list, NO 15CA or 15CB to be submitted as mentioned in #2. For payment not exceeding 50,000, even if taxable, file only 15CA part A as explained in #3.
Dear Jigar,
Your blog is really awesome and has very interesting details around NRI services. You have made things easy for everyone which is referring your blog.
I would highly recommend your services to everyone after speaking to you over phone and the way you helped in my case.
Wish you all the very best.
Cheers!
Thank you . We really appreciate your words and we are glad that it is making a difference. Thanks.
actually my cousin wants to transfer amount from NRO to NRE. what are the taxes to be deducted at the transfer. can u guide me.
There is no tax on transfer as it is your money and you are transferring from one account to another. As indicated above, from October 1, I think NRO to NRE transfer may not require 15CB/CA. However, I am not sure who will take responsibility for whether taxes have been paid on the funds in NRO or not.
Dear Mr. Jigar,
The notification no. 67/2013 dated:2/09/2013 is silent on the remiitance on account of import of goods to Non-resident. Whether we have to file form 15CB/CA for each & every foreign payment on account of import of goods ??
The important consideration would be if the Payment for import of goods would be taxable for NRI or not. You may also want to refer the DTAA agreement between India and foreign country. If yes, it will be covered by the “any payment chargeable to tax” and yes, you would have to get the 15CB/CA provided the payment exceeds Rs. 50,000 or aggregate payments exceed Rs. 250,000 in a financial the year.
Thank you .
No Income Tax is chargeable in India on Import of Goods. India has huge import. So, I feel it does not come under “any payment chargeable to tax”. Therefore, should a manufacturer file Form CB/CA for every Import against Letter of Credit or Advance payment.
Dear Sir
We are Ad-2 dealers & do lot of international outward tour operator remittances on behalf of the local travel agents, does this fall under cbdt rules & 15 ca, 15 cb is required for this category.
regards
Rajesh
15CB/CA is required for any taxable transfers from Oct 1, 2013. The nature of each outward is to be looked in detail to determine whether the transfer is subject to income tax or not. There are certain specific payments that do not require 15CA/CB e.g. business travel or travel under BTQ, for pilgrimage, for medical treatment or education, no 15CB/CA required. Any other payments/outward remittances may require 15CB/CA compliance. Thanks.
Dear Jigarji,
If the tour operator/tarvel agent provide us the invoice given by overseas agent/hotel stating no of paxs and individual tour cost and a declaration stating it is from the BTQ quota of the traveller, is then there is need to obtain 15 ca and cb from the travel agent (remitter). Pls guide
For any travel under Basic Travel Quota (BTQ), 15CB/15CA is NOT required. The nature of payment “Travel under Basic Travel Quota (BTQ)” is included in the specified list as Sl. No. 11 and RBI purpose code S0302. The explanation 2 of the notification specifically clarifies that for nature of payment under specified list, no information is required to be furnished. Thanks.
I want to transfer money from my ICICI NRO account into USD. What is the process? Can you help me with this process. Funds in my NRO account are from the property that I sold in India.
Thanks.
If you have paid your taxes or TDS deducted for profit on sale of property, you can easily transfer your funds to the USA.
The banks like ICICI do not allow any online feature or document procedure without 15 CA/CB to transfer my own life long savings from my NRO to my NRE account despite over deducting TDS at excessive rate of 33% on interest savings. Is it legal for them to do?
I do not want to travel to get 15 CB.
The TDS rate is 30.9%. If you could provide the Tax Residency Certificate (TRC), TDS can be deducted based on the rates specified in DTAA (Double Tax Avoidance Agreement) between India and country of your residence, which would be about 10-15% depending on the country. For 15CB/CA, no physical presence in India is required. Procedures for 15CB/CA has changed from Oct. 1, 2013 and some education or explanation or rapport with Bank start may be required.
We makes regular payment to Our Raw Material Suppliers outside India.
Does we require 15CA/CB?
Plz explain.
Sir,
We are a Indian software company exporting our services to Canada. We have appointed a marketing executive in Canada to meet prospective customers in canada and to obtain orders. The salary for this $4000 per month.
Do we have to deduct tax on this? The executive in a canadian citizen / resident and doesnot have any PAN.
Is form 15 CA / CB needed ?
Thanks
Salary paid to foreign citizens, outside India for work performed outside India is not taxable and hence no requirement of 15CB/CA. However, detailed analysis of the case needs to be done as to who is the employer (India or Canadian company), performance of duties in Canada or India, nature of payment, salary or reimbursement, etc.
Dear Sir, my question is about new changes regarding 15CA and 15 CB. A foreign company provides email marketing campaign in Ireland on behalf of my client, till 30th September we used to remit without deducting any TDS as the foreign company has no PE in India and also we used to submit form 15CA and 15CB. So, now you please guide us as to whether we should submit 15CA and 15CB or not. Thanks.
Please review the DTAA with India and Ireland and contact your bank to determine if 15CB/CA required of not. Thanks.
Hi,
If there is no PE in india then why to check for DTAA ?
TDS laibility wont arise
The income / payment have multiple sources and PE may not be an issue; e.g. salary, rent, capital gain, interest, etc. The DTAA needs to be checked, if there is any favorable rate prescribed for the specific nature of payment where PE is not a criteria. I hope this helps. Thanks.
Dear Sir
thanks for the post. We are regular importer of Medical Equipment for the last 15 years and suddenly ICICI has come up with requirement of 15CA/CB from auditor for each and every import transfer.
Now auditors are not available for immediate disposal of every day transfer and are imposing us a fee of Rs 2000/- for filling each form which is totlsly unacceptable.
What is the remedy.
Requirement of 15CB/CA is not new and may be required for any payment outside India. I have experienced that not all banks ask for 15CB/CA for all the payments and it depends on various banks on their internal procedures. The certificate to be provided by a CA who may or may not be your auditor. The fee of Rs. 2000 per certificate is between you and your CA and you can share your views about the same. Thanks.
Hi Jigar,
I intend to transfer funds from my NRO account to my US account. Do i have to furnish my bank with the 15CA and 15CB forms. These funds are from the sale of my property in India. Appreciate if you could guide me with the latest updated process which would help me to coomunicate with my bankers.
Thanks and Regards
Sale of property could have resulted in capital gain subject to tax in India. If TDS had been deducted by the buyer before making payment or if you had paid the taxes and filed your tax returns, please provide the proofs or documents to the bank. Had the taxes been paid, you may not require the 15CB/CA from October 1. However, it is advisable to follow up with the bank or your CA for the same.
“Had the taxes been paid, you may not require the 15CB/CA from October 1”– Even If someone shows tax payment receipts, how will bank decide whether capital gain tax has been correctly arrived at. Also as per RBI Master Circular (http://rbi.org.in/scripts/NotificationUser.aspx?Id=8095&Mode=0)regarding “Acquisition and Sale of immovable property by NRIs” a No Objection Certificate/Tax Clearance Certificate from Income Tax Authorities is also required to be submitted to the bank.
sir i want to ask that my company remmits business commission to a non resident, we were required to furnish form 15 ca/cb, please tell me that still we are required to do so or according to revised provisions we are not required to furnish.
Please check if the non-resident is a person or a business and if they have a PE (Permanent Establishment) in India or not and based on the review of DTAA as well as commission agreement, determine if TDS needs to be deducted or not and accordingly furnish 15CB/CA, if required. Thanks.
Dear Sir
We are a subscription agency providing foreign journal/magazine to Indian government libraries such as AIIMS, Defense Institutes, IIT and various other libraris. In the process , we require to remit payment s to hundreds of publishers which is to the tune of USD 50 to a larger amounts. On average, we require 25000 to 3000 foreign drafts from bank each year. A-2 form is required and this is called under “other than import”.
Is this feasible or possible to fill form 15cb for each payment. Also we can not afford CA
fee as our margin does not allow us to pay such a huge amount.
Do we require to fill 15 CA /15CB at all or what else is the remedy.
Regards
Anil Arora
Journals Subscription Services
New Delhi
Our trust has granted a loan to Indian student for pursuing master degree course at USA which is repayable after completion of his education of this course.
The student is a resident Indian. Is it necessary to obtain CA Certificate in Form no 15CB for such remittance? This is a case of loan extended to resident Indian.
Travel for education (including fees, hostel expense, etc.) is included in the Specified List S0305 (#14) and no 15CB/CA required for remittance out of India.
Dear Sir,
I have few customers who posses foreign credit cards and they have spent on the same on their visits to abroad. Now they wants to repay the outstanding amount on the credit cards. As per RBI “Master Circular on Credit Card, Debit Card and Rupee Denominated Cobranded Prepaid Card operations of banks- Dated 1st July 2013”. Authorised dealers can make such outward remittances. My question here is that earlier we were not asking for the form 15CA and CB for processing the transaction. Now as per revised circular on form 15 CA and CB. Is it mandatory to take form 15 CA and CB for the outward remittance towards repaymenent of the outstanding balances on his credit card.
Requesting your valuable inputs on this.
Regards,
Deepakk
Below is the extract of the Circular which i have mentioned above.
EXTRACT OF THE CIRCULAR as::–
A.15 International Credit Cards
2215.1 The restrictions contained in Rule 5 of the Foreign Exchange Management (Current Account Transactions) Rules, 2000 will not be applicable for use of International Credit Cards (ICCs) by residents for making payment towards expenses, while on a visit outside India.
15.2 Residents can use ICCs on internet for any purpose for which exchange can be purchased from an Authorised Dealer in India, e.g. for import of books, purchase of downloadable software or import of any other item permissible under Foreign Trade Policy (FTP).
15.3 ICCs cannot be used on internet or otherwise for purchase of prohibited items, like lottery tickets, banned or proscribed magazines, participation in sweepstakes, payment for call-back services, etc., since no drawal of foreign exchange is permitted for such items/activities.
15.4 There is no aggregate monetary ceiling separately prescribed for use of ICCs through internet.
2315.5 Resident individuals maintaining foreign currency accounts with an Authorised Dealer in India or a bank abroad, as permissible under extant Foreign Exchange Regulations, are free to obtain ICCs issued by overseas banks and other reputed agencies. The charges incurred against the card either in India or abroad, can be met out of funds held in such foreign currency account/s of the card holder or through remittances, if any, from India only through a bank where the card holder has a current or savings account. The remittance for this purpose should also be made directly to the card issuing agency abroad, and not to a third party.
15.6 The applicable limit will be the credit limit fixed by the card issuing banks. There is no monetary ceiling fixed by the Reserve Bank for remittances, if any, under this facility.
Dear SIr,
We remit money to Foriegn Publishers for subscription of Educational Journals, is FORM 15CA & CB required to be filled? as no TDS is deductible.
If payment is less than 50,000 per transaction or 250,000 total during the year, 15CB is not required. Thanks.
Notification states “….any other chargeable to tax”to a non resident…
can you explain the meaning of changeability of tax
i.e. whether from the view point of the payer or the payee
Secondly, which Provisions of changeability of tax i.e. TDS Provisions or else Income Tax Act
Thirdly, in our case, one of our clients are importing machinery from china. Nothing has been specified regarding import purchase As per DTAA agreement between India & china. Banks are demanding 15ca/cb for the same.
Can you explain whether 15ca /cb is required for the same.
I think “chargeable to tax” means chargeable to income tax in India as per provisions of Income Tax Act. Also, as the notification states, “…chargeable to tax, to a non-resident”, taxability from the view point of the payee i.e NRI. Please note that my views are personal and you are requested to contact your CA or legal advisor for the same. Please refer the DTAA agreement, liaison with bank and client to determine if 15CB/CA required or not. Thanks.
Hello Naresh ji,
Firstly thanks for noticing the above and posting it online.
I too need to transfer my lifetime earning funds from NRO to NRE.
I’m wondering whether, in absence of a CA certificate about TDS, the bank would ask for all the details and try to assess source of income and tax paid status.
ICICI has been quite pricky last time I tried this in June’13.
They asked me for all details of every transaction in my account, despite having done all that explaining to my accountant for 15CB. Now, if there is no 15CB requirement, it leaves field open to bank personnel to obstruct the transaction and extract their pound of flesh.
Also, I’m wondering if, since the RBI “specified list” does not mention such a transaction, has it effectively been banned? Or just de-regulated?
Thanks,
Jeevan
As TDS was deducted by bank, bank would have all the proofs that TDS deducted. Please contact your bank, explain the situation and convince them to transfer the funds. You would need to prove that taxes on both the principal and interest or other income have been deducted or paid. Thanks.
Eventually I had to give in to ICICI’s demands and pull out proof for every transaction in past 3 years. And submit them a 15CA and 15CB form as well.
But after all that effort and a polished file of documents, they did complete the transfer for me.
I guess same situation in western countries would have caused a collective court case by customers against ICICI demanding un-necessary documents.
Unfortunately in India, that is more difficult than obeying such conditions.
Thank you for sharing your experience and views.
Dear Sir,
Can you provide me an exhaustive list of the documents or evidences required for Form 15CA and Form 15CB so that I can freely transfer my NRO matured term Deposits funded from my NRE funds.
The list of documents will depend funds in NRO. In short, you will need documents to prove the source of funds, and if taxable, support that tax, if any, have been deducted (TDS) or paid by you. Please contact your bank and your CA for the transfer.
I have FD in the B.O.B. NRO account. Now i want to transfer the same in the NRE account. TDS has been deducted on the interest amount of F.D. So now for tranfer from NRO to NRE account. Should i get obtain Form 15CB from C.A. as per latest circular?? If yes than who will file form 15CA also?? my self?? or my C.A.
The TDS on interest would prove that tax on the interest part of your funds have been paid. You would also need to provide documents that the principal part of the NRO funds were either not taxable or TDS deducted or tax paid. Your CA will provide the certificate in Form 15CB and based on the certificate, you would fill and submit Form 15CA. Your CA may help you with Form 15CA as well. Please try to convince your bank that 15CB/CA required or not and then coordinate with your CA. Thanks.
Thanks for providing information.
Now i have further two querries as my ca told me to file form 15CA.
1. In form 15ca they are demanding TAN.. I dont have TAN. what should i do??
2. In I.tax they are asking under which section such remiitance is taxable. But such kind of trasaction is not taxable as it is mere transfer of fund from one account to another account. And TDS has been already deducted on the Interest amount.
1. If you have PAN, TAN is not required. Your CA may not know but TAN is not mandatory.
2. If it is not taxable, you may not need 15CB. However, banks would require you to and the CA needs to explain in the 15CB that the nature of payment is not taxable with reasons.
Respected Sir,
A person is having dual citizenship of india and canada… he sold his agriculture land in rural area and wants to transfer receipt from sale to his son living in canada… wt is the tax liability on sale and is tds required to be deducted for transfer of money to his son in canada??
Tax liability on sale needs to be calculated and TDS of that amount to be deducted. Only after the TDS, money can be transferred to Canada. If A sold the property, tax liability would be of A. Any transfer to his son would be gift or loan. RBI limits and rules may be different for remittance of own funds or gift or loan or if he wants to buy a property abroad. Gift Tax rules of Canada needs to be checked as well. Thanks.
Can you please send Revised format of Form No. 15CA and Form No 15CB ?
Link to notification that includes 15CB/CA is in the blog.
Hi
I would like some help on this please. We have just sold a property in India. we want to bring the money back to UK. we paid for the property through money transfer from UK through HSBC bank. now we want to reverse the process basically. due to the chaneg from 1st oct, now the bank and CA are not sure if we are allowed to do that or not. as far as i understand , our case will be uner the specified code S0005, as we want to buy a house here and want to pay for the initial downpayment. the amount we want to bring is 30k GBP. now , can we do that under this change, if so, then do we need to pay the taxes. we have already paid the tax on capital. any help on this will be much appriciated.
Thanks
Sukalpa
You are allowed to do that. RBI has restricted acquisition of immovable property abroad of Resident Indians but you (NRI) can remit the sale of property amount after payment of taxes back to UK. S0005 would not apply to you as you are a NRI so your remittance is not covered under specified list and you may not remit without 15CB/CA. You would need a CA certificate in Form 15CB and then have to file Form 15CA for the transfer. Please contact your CA. Thanks.
Dear Sir,
Our Company is doing import business of round timber logs from singapore, New zealand and other countries from foreign companies under letter of credit and DP documents on CIF basis terms. Pls advice us that can we have to submit the 15CA/15CB at the time of remittance. pls advice us. you co-operation is highly appreciated.
Thanks with great regards
Rakesh Gupta
If the nature of payment is not covered under the specified list as per the revised circular and it is taxable, you would need to follow the procedures and furnish the information i.e. 15CB/15 would be required. Thanks.
Dear Mr. Patel,
Thank you for all the comprehensive information in your blog. It’s far more useful as even some banks seem to be unaware of these changes.
I received my EPF funds in NRO a/c (>5yr old a/c, proceeds not taxable). Now I need to transfer the amount to my NRE a/c. But I cannot map the pension fund to a particular category. Does it mean I need to furnish 15CB/CA (even with zero tax)?
Thank you.
Remittance by Non residents for family maintenance and savings does not require any procedures to be performed or information to be furnished as mentioned in the specified list no. 21, RBI purpose code S1301. Thanks.
Dear Sir,
One of my friends is moving abroad and wants to transfer funds to his own account. He got the money from his gratuity fund. Does he need to obtain Form 15CA and 15CB? Please guide in this regard.
Thanks
The nature of payment may qualify under “Remittance by non-resident towards family maintenance and savings” and may not need to furnish documents or follow procedures for transfer of funds. Thanks.
My query is if I open NRO & NRE Account today, when can I transfer my NRO funds to NRE?. Do I need to wait for a quarter/year for TDS to be deducted on NRO Account, or can I transfer to NRE within few days of opening NRO Account?
You do not need to wait. The TDS would be deducted on interest and would prove that tax has been paid only the interest part of transfer. You also need to prove the source of funds in NRO (principal) and whether any tax has been paid, if applicable. Thanks.
Urgent!!!!!!
Thanks.
Sir,
We have made a consultancy payment to the Foreign party but the rate of TDS considered was wrong and the same wrong amount of TDS & net remittance are made.
The NRI does not have PAN and instead of considering higher rate of TDS(Sec 206AA) we consider DTAA rate
Because of above situation we cannot file TDS return on time.
Again we issued 15CA/CB Certificate on the same party with grossed up amount and not with differential amount and the TDS department has rejected the certificate and not accepting the 15CA saying its not valid to issue the same party name certificate with grossing up amount.
The client is not bearing the TDS amount.
Please suggest a solution.
The revised form is very specific and asks the CA to review the case in detail and calculating the tax based on the income tax act as well as the DTAA with specific section and article respectively. I would recommend to contact your CA and follow up. As the department has rejected, it is same as not submitted so you may file another 15CA. I think you may need to gross up the payment, find the difference, use the difference for another 15CB/CA and pay extra tax from your pocket, however, I do not want to speculate with the limited information here. Please contact your CA. Thanks.
Hi, Sir
I want to know whether Form 15Cb is required to be issued if Father resides in India want to transfer Rs. 300000 to his Non resident son in USA.
I am not getting Clear about it.
Thank you€
As per Liberalized Remittance Scheme (LRS), a resident is allowed to send upto USD 75,000 per year (reduced from USD 200,000). Please contact the bank and they would help you with the transfer. However, you would need to clarify the nature – gift or loan and follow the procedures. Thanks.
under code S1302 remittance towards personal gifts and donation is in the specified list as such no 15cb is required and 15ca has to submit.
Dear Sir,
we are a Freight forwarding company and collect freight payments on behalf of our counterparts as per agency agreement.
1. I wish to know whether we are liable to deduct TDS from freight payments collected.
2. Bank is still asking us for 15 CA & CB for making remittace to our counterparts
Is same still applicable whereas this notification still states S No 17 : Freight Insurance relating to imports and export of goods
Pls advice
Thanks / Sanjeev
As per the specified list, only the payment for freight insurance would be covered and not require any procedures (15CB/CA). For any payment that is not mentioned in the Specified List and is “taxable”, you would need to comply with the notification and required to furnish the information (15CB/15CA). Thanks.
Dear Jigar,
Pls guide about the new format 15CA which is provided in notification no. 67 of CBDT dtd 02-09-2013, as when I am trying to fill online the form 15CA in the website http://www.tin-nsdl.com the format provided is old one. It is not the same as mentioned in the said notification. Shall i fill the old format and submit online?
I agree that the Income Tax department has not updated the online 15CA format as per the notification. As 15CA is mandatory and required, please fill up the form using the tin-nsdl website. You may make a note that the form is submitted in the old format as new format is not available. Thanks.
Sir,
My son, a NRI, gave some amount from his NRE a/c to me and my wife.
He requires the same back in his NRE account. We are unable to make him this payment as banks say that payment in NRE account can be credited only in foreign currency. If we issue cheque in his NRO account then how that will be transferred to his NRE account.
Please clarify.
Regards
Mittal
Dear sir, you need to identify whether the funds given by your son is a gift or a loan. NRIs are allowed to give loan to close relatives subject to certain conditions as to its use, term, interest rate, etc. on repatriable basis. If you follow under that category, you may get the funds credited to NRE account. However, I would think in your case it was not a loan to close relatives on repatriable basis and then once funds leave NRE account, it lose repatriability and can only be credited to NRO account. Once in NRO, you/your son needs to follow the procedures to transfer the funds from NRO to NRE (15CB/15CA, etc.) and then only funds can be credited in NRE account. Thanks.
Hello Mr. Naresh
I have sold a house in Delhi for which the proceeds have been deposited in my NRO account. I have some questions regarding the whole transaction as I want to get the funds in Canada. I had declared this property before migrating to this country and at that time the FMV of the property was assessed and mentioned in the immigration form.
My questions are:
1. When do I pay the tax on gains made through this transaction as the deal was done by my agent in India who deposited the proceeds to my NRO account
2. As these countries have tax treaty, do I incur tax liability on capital gains in both the countries
3.What is the procedure of getting remittance back from India through NRO/NRE account through form 15 CA/15CB
Thanks
Sanjeev
1. As you are a NRI, As per Income Tax Act, the buyer needs to deduct your tax amount from payment as TDS and make only the balance payment to you. However, due to ignorance of law or procedural hassle, buyer may not deduct Tax. While ignorance of law is not an excuse, as long as you pay the tax, there is no loss to the revenue (exchequer), and no penalty to buyer.
1a. If tax had not been deducted, you would need to pay 100% the tax on or before the next advance tax payment date which are 15th Sept, 15th Dec, 15th Mar. So if you sold the property (as per sale deed) any date between Sep 16, 2013 and Dec. 15, 2013, you have to pay all the tax before Dec. 15. If not, you would have to pay interest @ 1% per month.
2. As the property is situated in India, you would pay the tax in India. You may get a credit for taxes paid in India for your income in Canada. Please contact your CPA in Canada for tax and other compliances.
3. The procedures is to be performed for remittance out of NRO only and is the same as discussed in my earlier blogs; pay tax, get CA certificate in 15CB, submit 15CA online to Income Tax department, request bank and remit the funds to NRE or to Canada. Once funds in NRE, there is no procedures and you may instruct the bank to wire funds to your bank in Canada.
Thanks for vising and posting a comment….
Sir
We want to make Foreign Remittance (for expenses (like conveyance, boarding, lodging) of our site Engineer at Sierra Leone) of USD 1000.00. we will have to file 15CA/15CB form ??????????????
I think, in your case, 15CB/CA may not be required as it may be covered under the Specified List of the notification, especially, Sr. No. 10, SBI Purpose Code S0301, “Remittance Towards Business Travel” OR No. 18, RBI Purpose Code 1011, “Payments for maintenance of offices abroad”. If the nature of remittance is covered under the specified list, 15CB/15CA are not required. Thanks.
Dear Sir,
We need to send foreign remittance of GBP 2000 to UK as membership fees. Do we need a PRC certificate from the UK company to whom we are sending the payment or will FORM 15CA /15 CB work. Please also let us know do we have to paid TDS.
Regards,
Chander
Please contact your bank for the documents/information required to transfer the funds.From the limited information and general description “membership fees”, it is not clear as to whether this is for one time, recurring, for trade fair, or conference or subscription. I would request you to contact your Chartered Accountant to determine if TDS is required to be deducted as a number of factors needs to be reviewed, e.g. exact nature of transaction, whether transaction included in Specified list, India-UK DTAA, may be whether the institute has a PE in India, etc. Thanks.
I have several NRO FDs which were my mothers several years ago, and were put into my name when she died in 2009. I do not know the exact source of these funds, they might have been remittances from abroad (they were also NRIs), or they might have been from Indian investments, which they must have paid taxes on. I would like to convert these to NRE, and possibly send to the US at a later date. With the new rules, is it as simple as giving the reason of family maintenance, or in this case will I be required to use a CA to prepare any forms?
For you, the source of the funds would be inheritance, which is tax free in India. I would also assume that since the FDs were owned in your name, TDS would have been deducted. You may have to give a declaration that this is for family maintenance and savings and may also explain/provide the inheritance of funds. As the transfer is not taxable (being inheritance and TDS deducted) and nature of transfer included in the “Specified List”, you may not need the CA certificate 15CB or furnish 15CA. Thanks.
Thanks. Do you think the major international banks there are aware of the new relaxed requirements yet? If I have NRO at bank X and want to transfer it to NRE at bank Y, I only have to convince bank X that the requirements have been met, right?
The credits into NRE account is restricted and as a result, you have to convince bank Y (bank where you have NRE account). Thanks.
I WANT TO PAY BOOTH CHARGES APPRX. RS. 1,50,000 TO A CHINESE COMPANY FOR AN EXIBITION TO BE HELD IN CHINA. WHETHER FORM 15CA/15CB APPLICABLE AT THE TIME OF TRANSFER OF FUNDS.
While you may insist the bank to remit the payment to a Chinese Company for foreign exhibition, the bank would ask for the Certificate. Please consult your CA as he would need to confirm if the vendor has any PE in India or if tax needs to be deducted based on DTAA. If tax is not to be deducted, a certificate may be issued for remittance not subject to tax with reasons and bank would remit the booth charges. Thanks.
THANKS
Sorry for troubling you again. I just want to know whether TDS provisions u/s 195 are applicable since the company is Chinese with no PE in India and the event is being organised in China.
I don’t think so but please confirm with your CA. Thanks.
Please guide me is it possible to claim exemption u/s 54F for purchase of property outside India by a NRI.
Further please let me know the process of remittance of Actual Cost + Capital Gain outside India.Will it be done through Form 15CA and 15CB.
For purchasing property abroad to save capital gain in India by NRI, there are two conflicting judgments by two different courts. That being said, I think it won’t be admissible at lower level (ITO) and you would need a lot of patience. And, you may have to go to various levels to CIT or Tribunal or even High court depending on the amount involved. Requested to consult with your CA in detail for your case.
The process for remittance of cost and capital gain after payment of taxes is the same i.e. pay tax, get CA certificate 15CB, file 15CA and then request bank to remit funds outside India. Thanks.
Sir,
We have to remitt some amount to foreign vendor towards analysis charges of our finished goods ( as the facility is not in india) which is more than 50000/- single transaction and total value becomes more than 2.50 Lacs in a financial year. We have understand that we have to file information of 15CA in part-B after obtaining for 15CB from CA at income taxindia site. Please confirm whether form 15CA part-A is also required to file or only for 15CA part-B suffice.
Recently, from February 12, 2014 only, the procedures for submitting 15CA form has been revised. Until Feb 11, while the 15CB to be issued in the updated format, 15CA was to be submitted in old format. Form Feb 12, for submitting Form 15CA online, you would go to the http://www.incometaxindiaefiling.gov.in (instead of tin-nsdl.com) and download the 15CA Form Utility from the section “Forms (Other than ITR)” and fill up the details and submit the form online.
In your case, if the amount is more than the threshold limit, you would have to use Part B. Part A is only if the payment is less than the threshold. Thanks.
Hello,
I have a NRO/NRE account with Citibank India. I have spoken to my relationship manager and he says that I would still need form 15CA/CB to transfer the balance in my NRO a/c to my NRE A/c. All remittances to my NRO a/c has happened from my US bank accounts and all taxes have been paid on the interest earned on the NRO fixed deposits (My PAN is registered with the bank). Where can I get the 15CA/CB from US? Do you provide this service?If so, what are your charges?
Please advice.
Try to convince the Citibank that the money you need is towards your family maintenance and savings and it is included in the specified list of transactions which does not require 15CB/CA. If the bank knows the source (foreign remittance) and the TDS deducted and the amount is reasonable, they may transfer. If they still ask for the 15CB/CA do contact us at the email/phone mentioned in the “Contact Us” and we will try to convince them. Thanks.
I am having an Indian Private limited co. and want to make an advance to a Non-Resident Company abroad what are the formalities:
1. Do i need to file form 15CA?
2. Do I need to give Form A1?
3. I am share holder and Director in both the companies?
4. My status is NRI in Current FY2013-14.
Congratulations!!! your comment is the 100th comment on the post..We never expected such a great response from all. Thank You!!!
You would need to identify the nature of payment – advance for what? Expense, materials, services? Nature of payment would determine whether you would need the 15CB/CA or not. You are shareholder/director of both company is important for transfer pricing but may not matter for 15CB/15CA. The payment is made by Indian company and not you in personal capacity so your status would also not matter. Please determine the nature of payment and contact your CA. Thanks.
Dear sir
Our company issued NCDs and in private placement QFI (qualified foreign investor ) subscribed NCDs. QFI has INR account with custodian bank in India and NCD are acquired by custodian bank on behalf of QFI.
Now issuer has to pay interest on NCDs and on due date it has transferred interest net of TDS u/s 194LD to QFI’s INR account.
For repatriation of funds to abroad from INR a/c, is 15CA required to submit? If required who has to file 15CA. Is it issuer or investor?
Investor does not have TAN and PE in India
Could you please help me
Rambabu
15CA is to be submitted and signed by Investor Only. Also, TAN is not mandatory; PAN is required. Whether 15CB/CA required or not would depend on the Investor’s country of residence, DTAA. Please check with your CA. I would also advise you to contact the investor’s bank and understand the requirement as remittance would ultimately be processed by the bank only. Thanks.
Sir,
I am currently working in Saudi as an accountant, One of supplier from india has sold one machine to our customer here , our company has been the sole agent of supplier company from india , for our service they use to pay commission i.e 10% of sales value.
Now indian company has to pay us exactly 25000 USD as our commission , now they are telling 10% will be deducted as TDS, is this TDS applicable for our payment, please advice
Please inquire why and under which section they will deduct TDS; also why 10% and not less or more. It would be clear/better to argue thereafter if their logic is correct or not. Thanks.
Dear Jigar,
I am a NRI based in Muscat. I had placed a NRO FD for 3 years with State Bank from out of my NRE a/c with another bank in 2008. The FD was further renewed for 3 years on first maturity in 2011. The renewed FD will now mature. I want to transfer this amount to NRE a/c. I gave SBI a certificate from first bank that the original source of FD was NRE a/c. SBI still INSISTS that I need to give them both 15CA / CB. My queries are as follows:
1) Is stand taken by SBI correct?
2) If I need to give 15CA, part B section B of this form has section for taxability under IT Act and also under DTAA. Since Oman and India has DTAA, tax was deducted @ 10% as per DTAA (I had given tax rrsidency certificate to SBI). So DO I need to leave the fields blank under IT act? (since tax was deducted only under DTAA).
3) In amount of TDS, do I need to mention tax deducted for all the 6 years, i.e. 3 years for original deposit and 3 years for renewed one or tax deducted in only current renewed FD of last 3 years ?
Shall be grateful for reply.
Thanks and regards
RAKESH J
1. Please try to convince the bank that this is for family maintenance and savings and that no 15CB/15CA required for such transfer.
2. 15CA Part B can not be filed by itself and you would need the 15CB certificate from a Chartered Accountant. 15CA to be filled based on 15CB. Your CA would know. He may also help you for furnishing 15CA as well. Thanks.
Dear Sir
We export our products of machinery and spares across the globe. We have agents in Europe, Middle East, South East Asia, Latin America and elsewhere.
The bankers demand a certificate from CA for the issuance of remittance to the beneficiary. The IT authorities TRC certificate. As per our consultant the TRC (self issued) is mandatory. Please guide us on the following issues
– Is TRC required to make payment of sales commission for securing orders from overseas
– Is TDS deduction applicable on sales commission paid to NR (agents/distributors)
With regards
Vinod
I don’t think TRC is required or mandatory for CA Certificate. A lot of jurisdictions (countries) may not have a TRC rules. Also generally, while TDS may not be deducted if the Non Resident agent who operate outside India and does not have PE in India, however, a DTAA with respective country needs to be checked. Please contact your CA. Thanks.
Dear Mr Naresh
This blog is very informative, thanks.
My query is whether a remittance by a Resident Indian Company to a Foreign Company as refundable security deposit (EMD) of about 2 Crores INR for verification of documents for possible acquisition of business will attract 15CA & 15CB?
Nathan
If your nature of payment is for India Investment abroad as included in the specified list, you could try with your bank that and 15CB/15CA may not be required. If not, 15CB/15CA will be required.
hi
I received money after cancellation and court notice from Builder which ofcourse is in NRO account and for few months in the account. what I need to do to transfer it to NRE.
If I earn normal saving interest on that NRO account , Do i need to file a tax return?
You could have deposited the money into NRE assuming you originally paid out of NRE. If you want it to be transferred to NRE, it can be done. Please contact your CA and he will help you. You are required to file tax return, only if your income in India is more than 200,000, unless you want the refund of TDS deducted on the bank interest. Thanks.
Hi
I have NRO account with Vijaya Bank in Bangalore. I reside in UK and I need to transfer funds from my NRO account to my UK bank account. Vijaya Bank is insisting that I need fill up 15ca/cb.
I don’t believe this is required.
Please advise
Regards
Please try to convince the bank that you need funds for family maintenance and savings and 15CB/15CA not required as per the CBDT notification 67. Thanks.
Loan installment is being remitted by an Indian Co. to Foreign Co.
Installment consists of both interest and principal components.
Since TDS is to be deducted on interest part only, do we need to submit 15CA, CB certificates separately for both interest and principal components or single certificate for whole installment would be suffice???
Please check with the bank through which you plan to remit the funds. For Interest, 15CB/CA will apply. For repayment of loan, it may not be required as it is not a taxable transaction; however, please check with your CA or bank. Thanks.
Dear Mr. Jigar
Will U please help in a situation Where parents want to remitt a money amounting rs. 18lakhs towards their son outside india (USA) and money was invested in KVP.. so will it be required to deduct TDS in India and Whether required 15ca and 15cb???
You need to determine if KVP invested in parents’ name or children’s name. Also, whether parents are resident or NRI. Resident Parents can give gift of upto US $ 75,000 per year (RBI limit) and 15CB/15CA may not be required for “Remittance towards personal gifts and donation” as per CBDT circular. Thanks.
SIR,
DO I NEED TO FURNISH FORM 15CA/CB FOR REMITTING RS. 100000.00 TO A HOTEL IN DUBAI FOR BOOKING FOR TRAVELING PORPOSE ?
As mentioned in my earlier posts, 15CB/CA not required for business travel or travel under BTQ (Basic Travel Quota). Thanks.
Dear Jigar;
A friend residing abroad intends to remit funds out of his NRO account to his own bank in UK. The funds are non-taxable, we have obtained 15CB for his remittance. The problem is the mention of TAN on 15CA. How do we tackle the issue? Should we approach the AD? Please guide.
TAN is not required for 15CA and the form can be submitted without TAN. You may get a pop up to enter TAN but it is not mandatory. While your bank or authorized dealer may not help you, You may ask your CA who issued 15CB to help you with 15CA. Thanks.
please tell me whether i need to deduct tds on payment of advertisement fees to tourism australia in australia?
Please contact your CA, explain him the nature of your remittance in detail. He would understand the transfer, review the DTAA between India and Australia and would guide you better. Thanks.
Am I required to get TDS deducted for payment of certification fees / subscription fees which my client is going to pay to US company not having permanent establishment in India ? If I got as per DTAA with US, 20 % is required to be deducted if I categorise such transaction under technical service ! Am I suppose to have even TRC for this ?
Is there any list of remittance on which TDS is not required to be deducted while making foreign payment but for which 15CA is required to be issued ?
If TRC is required for proving the case then India is not going to come ahead ever !!!
Please reply at your earliest.
Thanks
Dhara Vadera
1. If you are claiming the DTAA benefit, TRC would be required.
2. Please understand and characterize your transaction whether technical service.
3. If the payment is Rs. 50,000+ and Rs. 250,000 during the financial year, 15CA can be submitted without 15CB. If not, 15CB is required.
4. You are lucky that your client is paying a US company where they can get TRC relatively easy. Try to convince your client making payment to a person or company of any tax heaven or country where there is no income tax to get the TRC….
Thanks.
I have NRO account opened two years ago.
I am planning sell house in India. Please advise, if I can deposit money (Rupees)in my NRO account and do I need form 15CA/CB to submit for deposit or I can deposit direct.
Thank you,
You do not need 15CB/15CA to deposit the sale proceeds into NRO account. You can directly do that. However, if you want to transfer the funds from NRO to NRE or want to remit the funds to your home country, 15CB/15CA would be required. Thanks.
Thank you for your advise.
Do I need to give any proof to bank for rupee deposit or this can be like ordinary deposit. ?
There is no proof required. You would deposit the check in ordinary course as if anyone is depositing check in his/her account. Thanks.
Hi,
I need a suggestion on NRE accounts. I had some money in NRE account which was then transferred to one or more saving account and made FD out of it. I then came to know that NRE FD has a benefit of nontaxable interest and want to go for NRE FD rather than saving a/c FDs.
Is there a way I can put back the transferred money from my saving a/c in NRE account with 15CA/CB so that I don’t have to pay any interest?
Thanks
NRIs are allowed to have funds in either NRE or NRO account among other accounts. The resident saving account would be termed as NRO account. So in your case your funds would be in NRO account and you want to transfer them to NRE account. NRIs are allowed to remit funds out of NRO towards Family maintenance and savings and 15CB/15CA would not be required. You may explain and convince your bank and may give the CBDT notification as a support. Please also read other comments of this blog to have better understanding. Let me know if you are still stuck. Thanks.
Dear Mr. Govind, have you sorted out this transfer of saving fd to NRE FD problem? Have you submitted the 15CA and 15CB form? i also have a similar problem and bank is asking to submit the form to transfer the funds to NRO to NRE.
Sir,
My company has executed a project in Phillipines. We exported the entire material required to the site. While execution, certain small items were damaged or short supplied which we sourced in Phillipines itself. We need to transfer 4800USD to the supplier for the same material bought on our behalf and supplied to site.
As per revised 15CA/CB norms, our CA tried filling the form online but could not do so. He opines that for supply payment 15CA is not required while our bank disagrees.
Please advise
Bank is the authorized dealer and has authority whether to transfer or not. Sometimes, the bank representative may not be updated with the latest rules. Please contact your CA and ask him to convince the bank why 15CA may not be required. Either he convinces the bank or bank convinces him to issue the certificate. In any case, you get the result. Focus on result. Thanks.
Hello Sir,
I am an NRI since 2006. I live in Dubai since 2006. I have sent money from Dubai to India in my SBI NRO Account in India and then made ‘Resident’ FDs (By ignorance). On these FD’s every year bank was deducting the tax and we were filing the return every year. Now we have realized that we made a huge mistake and it’s good to make NRE FD as it’s taxe free. now i want to transfer my funds from NRO to NRE (to make NRE fixed deposit) but branch manager is saying that he needs a 15CA and 15CB form from CA. I will keep the FD’s in india only. My CA is saying that it’s not required to have 15CA and 15CB forms. Unless CA will give these 2 certificate our bank (Union Bank of India) is not ready to transfer the funds from NRO to NRE. Please guide how can i make NRE Fixed Deposits.
As per CBDT circular, 15CB/15CA may not be required for transfer of funds by non-residents towards family maintenance and savings. It is included in the specified lists of nature of transfers that do not require 15CB/15CA. For any other nature of transfer, 15CB/15CA may be required. It would not be easy but banks have done that. You or your CA may have to give letter/declaration/certificate but 15CB/15CA may not be required. Thanks.
Thanks for your note. Also, i would like to know what are the requirements to transfer the funds from NRO to NRE? example: do we need to show the source of fund, and do we need to pay the tax on NRO amount? To give you a bit of history, we had used our NRI money (from dubai) to made domestic/ resident fixed deposits and on those resident/ domestic fixed deposits bank were deducting the tax and later we were filing the refund. Very recently we have broken our resident fixed deposits and moved our money to NRO account of mine. do we need to pay tax (under DTAA) before we think of moving the funds to NRE? Please guide.
As the banks have been deducting TDS on the interest, no additional tax is required to be deducted/paid. I think in your case, 15CB/15CA may not be required. Thanks.
thanks for your note. In addition to 15 CA and 15 CB forms; my bank is saying that ‘ all the taxes pertaining to the amount available in NRO account which needs to be transferred has to be paid’.
I am in middle of transferring funds from NRO to NRE and money is currently in my NRO account (moved very recently) so bank’s above comments means that do i need to pay the tax for last 5 -6 years (as funds came in 2009)before moving the funds to NRE?
You may ask the bank to provide the FD statement which would include the interest credited and tax deducted. If you don’t have the TDS certificate, you may get the TDS information from the incometax department’s website using 26AS or ask them to provide duplicate TDS certificate. Again, 15CB/15CA may not be required in your case. Thanks.
Hello Sir,
I am residing in USA since 7 years now. I had bought a home in India before coming to US by taking a bank loan. This month I have sold the home. There is some capital gain from the sale. 5 months back I have bought a home in US. My questions are :
1> Can I save tax on capital gain in India by showing that I am going to reinvest it in the property I had already bought in US ?
2> Do I need to pay any tax in India or in US if I want to repatriate the money to US ?
Thanks,
1. You need to look at tax provisions of both countries. There are two conflicting judgments – one allowing and other disallowing acquisition of property abroad. My view is that it may not be allowed at lower level and you may have to go file appeals to one or more higher authorities. So if the capital gain is not much, it may be prudent/practical to pay the tax, remit the funds to US.
2. You would pay tax in India as the property situated in India. You would also have to pay the tax in USA as being a US resident, your global income is taxable. However, you would get the credit for taxes paid in India and would be only the balance/additional amount. Taxation and Remittance are different. Taxation has nothing to do whether you want to remit the funds to USA or keep in India. Thanks.
Hello Jigar,
Thanks for the reply. Do you know if I need to pay tax in US on the capital gains from property sale in India ? One of the CPA here in US was telling that there is an exemption for gain from property sale of upto $500k.
Do you know how much will be the tax in US to be paid ?
Thanks
Vinay
I am not sure if the $500k exemption is available if property sold is in India. Also, what if the exemption is not allowed in India Income tax at lower level. How long you want to wait and at what cost and what if it is not allowed. I recommend you need to weigh all option and do cost-benefit analysis before making a decision. Thanks.
I am US citizen working in India for last 4 years. Frst 2 years, I was an employee and last 2 years I am a scientific consultant for which I am compensated monthly. I have been paying service tax , 10 % TDS is deducted from my compensation every month. I also pay advance tax on my consultant compensation. I am now going back to US. In May 2013, I transferred about 90 Lacs for maintaining my family in US. Now I want to transfer rest and bank is asking for 15CA/CB . They never asked for it in last remittance. I have already provided bank with copies of 16A. Please advise, do I really need 15CA/15CB.
15CA/15CB not required for NRI remitting funds for family maintenance and savings. It is included in the specified list on page 11 of the notification. Please get a copy and forward/explain to the bank or ask your CA to mediate. Thanks.
I need a clarification. I am an NRI, and having some NRO as well as NRE deposits in India. I need to break either the NRO or NRE deposits for transferring some funds for my daughter’s studies in the US. I intent to transfer this money initially to my own bank account in Singapore and transfer to the University. Is it allowed? Is Form 15CA / 15CB required in this case? any difference if the FDs broken is out of the NRE ones? please help.
1. Once your money is in NRE savings account, you can transfer to any account of your choice out of India, be in Singapore or USA or directly to University. You do not need 15CB/15CA for transferring funds out of India from NRE account.
2. There is no difference if NRE FD is broken. However, if NRE FD is broken within 1 year, you may not get any interest. Thanks.
Thanks for your initiative of helping so many people on NRO/NRE matters. I too need some help/guidance.
I hold an OCI card, and had used foreign currency to buy Indian rupees 5 years back. The converted monies were transferred to my NRE account with Citibank. Subsequently, I lent a substantial INR sum to a close relative (Indian citizen and resident), to help him buy a house. The transfer was made from my NRE account. He subsequently returned the monies to me, but the same had to be deposited in my Citibank NRO account.
Now, I want to convert the monies to NRE. However, Citibank is saying that they cant help me in the matter as proper documentations were not done for the loan. They say that the action of lending the money, has broken the trail of “source of funds” wrt to Citibank. Thus they cannot provide the “source of funds” proof to the CA for Form 15CA/CB, etc.
I need some guidance on what I should do, to be able to convert these monies to NRE. Any help would be much appreciated.
Thanks
1. Please explain your situation to Citibank and get a detailed answer “WHY” can’t they provide the source of funds proof or “HOW” the trail has broken. Also, what should have done and what you can now to bridge the trail (letter/declaration from you or your relative). OR
2. You may also consult your CA and give all the details (bank statement – NRE to your relative’s bank statement for loan and also from your relative’s bank account to your NRO) and he may establish the source of funds by himself. It may cost you more in CA fees but you get the result.
3. If any of above does not work, do email us. Thanks.
Dear sir
We are indian partnership firm, we are exporting medicines to cis countries.
We want to pay 3000$ product registration charges to Uzbekistan government.
As the payment is for product registration charges to foreign government tds is not applicable. I want to know under which section tds exemption is available to us.
And also we have obtained 15 cb from ca. Whether 15 ca is also required or not.
Plz help
Niraj loya
Lifecare exports company
Amravati
If you have already obtained the 15CB, just ask your CA to file 15CA. Or you may do it yourself as well. The 15CA is nothing but entering basic (yours, remitter’s name, contact and amount), your CA information who issued the 15CB and entering all the details of 15CB. Thanks.
Good Day Mr. Patel,
I have 2 questions, I hope you can shed some light on them.
1. I am leaving for USA in some days. I have been receiving salary from my current employer and tax has been duly deducted, then I have some capital gains from sale of property, do I have to furnish two separate 15CB and 15CA Certificates, one for salary and one for capital gains ?
2. I have sold 2 properties in India, on one tax has been deducted and on the other, tax is yet to be deducted since I sold it this year.
Can you please let me know what I am supposed to in each case ?
1. Unless you leave for India, you are an Indian resident. As per FEMA, if you are migrating to USA (job, study or immigration) with intention to stay out of India, you are considered NRI. And for Income tax, 60 days/182 days requirement apply. Unless you actually leave, you are a resident both under FEMA and Income Tax act. And, unless you are a NRI, you can not have NRO/NRE accounts.
2. 15CB/15CA may not be required as non-residents’ remittance towards family maintenance and savings is included in the specified list that do not require 15CB/15CA.
3. If TDS had been deducted, obtain 15CB/15CA and transfer the funds. While number of 15CB/CA is not important, it would ultimately depends on your CA and your Bank. Thanks.
I have a query for you Sir,
Should we first File Form 15 CA of deduct TDS.
I suppose we should first file Form 15 CA.
If i am correct then what are the consequences if TDS is deducted first ?
Thank You in Advance
You can not file 15CA without 15CB and in 15CB you need to write on which TDS deducted so the order would be to deduct TDS, obtain 15CB from your CA, file 15CA to the income tax department. Thanks.
I am an Indian passport holder , resident Indian and a permanent resident of Canada(I do a juggling act to satisfy both countries resident requirement). I want to remit a gift of CAD 25000 to my daughter, now a Canadian citizen. How can I do so.Thanks
You can easily give gift of CAD 25000 to your daughter. You just need to go to your bank, complete the form/sign a declaration for the purpose and the money can be remitted from your Indian saving account to your daughter’s bank account in Canada. The limit for Indian resident is USD 75000 or in equivalent currency per financial year. Gift to daughter is considered gift to close relative and is not taxable for you or your daughter in India. Please check with your Canadian CPA for any tax implications on this transaction in Canada. Thanks.
NRI repatriation of sale proceeds
As a resident, my son booked an under construction flat. He intends to migrate to Canada and sell it later after getting possession and to repatriate the sale proceeds.
I am aware that the sale proceeds will be placed in NRO a/c later opened. Apart from Short or Long term Capital Gains tax, is there any other tax further payable before actual repatriation, as other writers merely refer to other applicable taxes? What other taxes?
Nobody is answering this elementary question; I hope you will.
Thanks a lot in anticipation.
DC Bhargava
No. There is no other tax except Short Term or Long Term Capital Gains tax on sale of property. TDS may be deducted, however, TDS is not a tax. It is a payment to Income tax department on your behalf. Thanks.
Hello sir,
I am applying for Canadian student visa which requires a Guaranteed Investment Certificates (GIC) to be issued by scotiabank.Now i want to wire transfer the amount of 10,100 CAD from my savings citibank account to the scotiabank investment account.Will i be required to to include a 15 CA,15CB form in the bank.
Thanks and regards
Arvindan
I don’t think so but please contact your bank. Thanks.
Hello Jigar,
I have been staying in Canada for the last 2.5 years and have come to India on my vacations with the intention to wrap up my employment here. I would be receiving some PF (provident fund) and gratuity dues and I also have some accumulated salary from FY 2011-2012 for which the return had been filed and some tax dues were refunded to me too (I was on a long leave from my employment in India till Sept 2013). I want to remit these funds (total of about INR 25 lakhs) to my a/c in Canada. Do I need to submit forms 15 CA and 15CB? If yes then please advise a way to go about getting these in the quickest manner. Also, do I need to take the certificate from the assessing officer in the Income Tax Deptt.?
You are a NRI under FEMA and Income Tax department and as you want the money for family maintenance and savings and that your funds are after tax, I don’t think you would need the 15CB/15CA. Please contact your bank and explain your situation. Thanks.
Dear Mr. Jigar Patel,
I have some money in NRO account which was originally sent to India over period of time and used for private investment. Now I got all that money back and deposited to NRO. As I am planning to move that money from NRO to NRE so I do not have to cut TDS in India for that, do I still need to fill 15 CA / CB ? I do have bank statements showing all transaction from USD to INR..
please advice
If you earned something out of your private investment, you would need to pay tax on the income. Also, the nature of private investment is to be reviewed whether it was on repatriable or non-repatriable basis. If you have paid the taxes, TDS may not be deducted. If you need the money for family maintenance / savings, 15CB/15CA may not be required. Please contact your bank and your CA, who can guide you about the nature of transfer, investment, tax paid, documents required etc. Thanks.
Dear Mr. Jigar Patel,
We are in employee outsouring business. Some of the US citizens are our employee working in US . They are in our role. we are indian company. we have to transfer salary to US employees as dollors every month . What is procedure . Can we deduct any tax & any forms need to file. Bank is requesting 15CA/CB
Thanks in advance
Subrmanya
A lot of information would be required to answer your question such as whether you have a branch/subsidiary company in USA, whether employees are employed by the Indian or USA company, how client is making payment – to Indian or US company, whether you pay/deduct tax (India/USA income tax), whether the US citizen employees are working solely in US or both in US/India, whether the payment is covered under the “Payment for maintenance of offices abroad”, etc. Also DTAA between USA and India also needs to be reviewed. Please check with your CA. As he would know these in detail, he will be able to guide you better. Thanks.
Thank you so much for your valuable time. I would deeply appreciate your insight with respect to my problem:
– My uncle died in India last Nov. leaving me approx. 57 lakhs.
– The money is now in an NRO account under my name ( I’m a Canadian citizen, and live in Canada – I have never lived in India – but my parents were born there and I have an OCI card and NRI status)
– I would like to remit the money to Canada – but I’ve been told by the Bank that
they need the Chartered Account forms
– The Chartered Accountant then told another uncle in India – that I have to apply for a PAN card…
According to what I have read on your blog, I don’t need a PAN card or the Chartered Accountant forms – as the inheritance isn’t taxable. In fact, from what I’ve read I only need:
1. Account holder’s Letter giving details of purpose of remittance and certifying the same
2. Copy of document/s establishing the inheritance and value of proceeds credited to the NRO account
3. Cheque or debit authority if the same is not contained in the letter in item (i)
4. Application in Form A2
Could you confirm if the above is correct. Thank you again, so much.
Best,
Dina
Yes, the list of documents mentioned by you is correct. Banks do remit inheritance received without 15CB/15CA. Bank may ask for a CA letter stating the fact that the amount is indeed inheritance and is tax free but not the certificate in Form 15CB. While PAN is required for 15CB, it may not be required for CA letter. Hope you are able to transfer funds without 15CB. Please post comment how it was resolved for the benefit of other NRIs. Thanks.
Dear Mr. Patel
Thank you so much for your prompt response.
I certainly will post how this matter is resolved – once it is 🙂
– To further clarify – are you saying it is simply at the Bank’s discretion whether they are willing to remit an inheritance without requiring 15CB/15CA? – Is there no requirement from Indian Tax authorities?
– Getting a PAN is not something I want to undertake.
– I’m wondering if it might just be simpler to close my account at HDFC Bank and open it an another Bank that is more practiced in remitting overseas such as HSBC or Citi ?
Thank you again,
Sincerely,
Dina
Just to add –
– My uncle left money to my brother and mother as well – possibly necessitating the application for 3 PAN cards?
– I wonder why Indian Tax Authorities would like to be in the business of issuing PAN cards to persons who have never worked or carried out business in India, and nor do they intend to – but have simply been left an inheritance by their Indian relatives … I’m sure we are not the only case…
Thanks again 🙂
1. The requirement of Income tax department is that the tax should be paid, if the nature of remittance is taxable before remitting fund abroad. However, actual remittance is done by the bank as Authorized Dealer under FEMA. CBDT (Income Tax) issued the notification that 15CB/15CA not required for remittance that is not taxable. Also, FEMA instructs banks (Authorized dealer) to remit funds provided it is satisfied that the tax has been paid and is within FEMA limits. As “satisfaction” is a subjective matter, the document requirement for different banks may differ. I hope this helps.
2. You would not know the requirement of other banks. Also, opening and immediately closing a bank account for NRI may not be that easy and may raise a flag. However, I would recommend open the account only after you have received positive confirmation from the bank that you would be able to transfer the funds without 15CB/15CA, which I think may not be easy.
3. PAN card is a tax ID number and a way to track the remittances out of India to determine the nature and to find if tax has been paid or not, whether it is related to money laundering or illegal/hawala transaction. There have been such instances and that is why it is required for 15CB/15CA especially now (from Nov 1, 2013) as 15CB/15CA required only for taxable transfers. Thanks.
Dear Mr. Patel,
Thanks very much for your response. I will follow up, and once settled will post the outcome.
Thank you again for the information you provided.
Great blog!
Dena
One of our client is making payment for metals info subscription i.e(to get information about prices of nickel ,copper etc )so,now question is whether it is Technical service or no???? and what will be TDS rate.
There is DTAA agreement between India & Israel.& the provision for technical is:
Article 13 : Fees for technical services – 1. Fees for technical services arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State
2. However, such fees for technical services may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the fees for technical services, the tax so charged shall not exceed 10 per cent of the gross amount of the fees for technical services.
3. The term “fees for technical services” as used in this Article means payments of any kind received as a consideration for services of a managerial, technical or consultancy nature, including the provision of services by technical or other personnel, but does not include payments for services mentioned in Article 16 of this Convention.
So pls guide whether TDS will be deducted or not & what will be the procedure.
The first and foremost is to determine if this is “Fees for Technical Services”. It is really really important and YOU need to determine based on the detailed review of the contract/agreement and the services and whether company has PE in India or not.
Assuming no PE and services are covered under fees for technical services, TDS @ 30%/40% + surcharge/cess apply provided the recipient is non-resident non-corporate or foreign company. Also, relief can be claimed under DTAA with Israel. You would write the DTAA article, rate, basis and then deduct @ beneficial rate i.e. DTAA rate and issue certificate in 15CB accordingly.
Again, YOU need to review the contract or agreement and determine the correct nature. Thanks.
Dear Mr. Jigar Patel,
My question is regarding repatriating my funds incurred through salary into my Australian account. The Bank has requested :
1. Repatriation Application Form
2. Form A2 & FEMA declaration
3. 2 originals of 15 CA and CB each required signed by the Chartered Accountant (15CB) and the remitter(15CA)
4. Copy of Form 16 A /Salary Slip confirming the Salary and the tax deducted.
My questions : 1. & 2. is straight forward.
However, I don’t have form 16 A instead I have Form 16 from my employer for every financial year – would that suffice ? else how to get Form 16A ?
How to get originals of 15 CA and CB as I don’t have many relatives I can request to spend time on this. Is there a way I can do everything from Australia ? Please advise.
Many thanks,
Cheers
GJ
As Salary is taxable source of Income, you would have paid tax or TDS would be deducted. It Salary is more than 200,000 per year, you would have also filed your income tax return. Please contact your CA and he would help you for remittance. You don’t have to visit India and everything can be managed from Australia. You may also show your tax return or Form 16/16A showing salary income and TDS deducted and bank may transfer funds without 15CB/15CA. Thanks.
I am an Indian passport holder and a resident under the IT Act and still hold a Canadian PR card.I need Foreign Exchange for travel to and stay in Canada.
How much can I get.And what is the documentation needed.
Thanks
I think you can have equivalent of USD 10,000 for travel. If you are migrating to Canada, you may get more – upto 1 million as you will be “NRI” under FEMA. Please check with your bank or currency exchange house. You won’t need any other document than ticket, passport and PR card. Thanks.
Dear Jigar,
One of my clients is importing Raw Materials (Yarn) from Japan. Whether form no. 15CA/ 15CB is required in case of remittance for Import of Raw Materials ??? Bank has requested for the 15CA/ 15CB. The remittance is more than Rs.20,00,000/- and which is to be made in US$. Please advice me if there is requirement of issue of Form No. 15CA/ 15CB, then how the taxability under the provisions of Income-tax Act (without considering DTAA) is to be calculated. As per DTAA, there is Nil rate of TDS. Please advice me…
15CB/15CA may not be required for import of raw materials. Please contact the bank and bank will process the payment. Thanks.
Dear Sir,
According to the conversation one thing is clear the payment of export commission to foreign agent is liable to tax in India and does not attract disallowance.
But I have one question which is as follows:
We have consignment/foreign agent who sales goods on our behalf in foreign countries and receives payment from those parties. Thereafter he deducts his commission of 5% and balance of 95% remits to us in India and for 5% he issued debit note to us. (Approx. Commission Amt in INR is 30 Lacs)
Now my question is whether we need to obtain & file Form 15CB?
Please guide regarding course of action in this regard.
Thanks & Regards,
CA Pratik K. L.
Export commission may not be taxable if the agent works outside India, has no PE in India, Income accrues and/or received in India. However, you may also want to go through the DTAA between India and the agent’s resident country. That being said, in your case, as no payment is remitted abroad, I am not sure why you would issue 15CB. However, the transaction should be looked into detail as mostly, agents do not receive payment on sale of goods but payments are made directly to the seller in India and then commission is paid/remitted to agents abroad. Thanks.
My client is a indian company and recruuited employes who is non redsident of india in the month of March – 2014. Now salary has to pay USD 5000.00 for the month of March – 2014.
For the above Following are my queries –
1. Form 15CA & 15CB required?
2. What will be TDS. (How much TDS has to deduct on salary) ?
3. Impact of DTAA ?
1. Yes, as salary could be a taxable payment for an employee (NRI) performing duties in India, 15CB/15CA may be required.
2. TDS for salary to be deducted as per Sec. 192
3. DTAA benefit may be available but you would need to study/review the DTAA agreement between India and NRI’s country of residence.
Dear Sir,
I am an NRI with German Citizenship. Last year I made remittances of my savings into my NRO account instead of making them to my NRE account. Now I want to transfer it back from my NRO account into my NRE account again in the same bank and same customer id, since the interest on it is not taxable and it is also fully repatriable.
Now the bank is asking me to submit form 15 CA/CB along with the application for the transfer from a CA. Could you please suggest me whether this can be avoided, because the amount is originally remitted to India from Germany and is not earned local.
Thanks a lot for your advice in advance.
Yes, 15CB/CA can be avoided. You would just need to insist more to the bank for the transfer. If the money transferred from Germany to NRO, they know the source and would be able to do that. Do update about your status. Thanks.
Jigar,
I had remitted some money from abroad in my NRO account and then showed it as loan to my parents and my HUF for tax planning purposes.
I intend to take back this loan from my parents and my HUF back to my NRO account, for the sole purpose of transfer of funds from NRO to NRE to make tax saving NRE FDs.
Question: will I need to submit Form 15CA/CB even though it is my salary income from abroad and was received in my NRO account?
If yes, there are weird questions in Form 15CA/CB regarding the country of remittance, amount of remittance in foreign currency, etc. do I have to leave them blank?
Thanking you in anticipation of an early response,
Kind regards,
RAHUL
I don’t think you would require 15CB/15CA. Please contact your bank and explain your situation to the bank personnel in detail with supporting documents. If documents are in order, all taxes paid, no tax liability, bank would transfer the funds to NRE without 15CB/15CA. As it is not a taxable transfer, 15CB/15CA can’t be filed as per revised notification and formalities are not required. For any transfers that require 15CB/15CA, you can’t have ANY blank columns. Your CA would issue 15CB and would know how and what information to fill. Thanks.
Sir
our company has to pay Rs 800000 as professional fee in usd i.e 12900 . Whether we need to deduct TDS on this payment. If so what is the rate of TDS (Usage of service is in india)
TDS required for any taxable payment to NRI. In your case, I would say deduct TDS @ 30.9% for payment to NRI. If the professional fees paid to a foreign company, TDS @ 41.2% will apply. However, you would need to review the DTAA between India and the recipient’s resident country to check if any DTAA relief is available and can be claimed i.e. if DTAA allows TDS at lower rate. Thanks.
Dear Sir
I have an export house in India and I am going to take part in an exhibition in foreign country i.e. UAE. For the same purpose I have to pay rent for the area where I am taking part as an exhibitor which I have to transfer in USD. Kindly give me an opinion that whether I would be requiring form 15 CA/ CB.
Regards
Ankit Gupta
Assuming the exhibition organizer is out of India and does not have any establishment in India, the remittance may not be taxable. And, as per the latest CBDT notification, 15CB/15CA required only for the taxable transfers so you may not need 15CB/15CA. However, please contact your CA and the bank for details. Thanks.
Dear Mr. Patel,
We have a technical collaboration for a healthcare service with a company in USA.
We need to make some payments to them against the technology which we are using. Payment is in the order of $6300. Want to know what would be the tax liability applicable here?
Is form 15CA/CB is required?
What would be the clause under DTAA with USA?
Request you to please provide some insight.
Thanks.
Payment for Technical Collaboration could be a taxable transfer and 15CB/15CA would be required. The TDS rates for payment to Non resident non corporate and foreign company as per Indian income tax are 30.9% and 41.2% respectively. However, please consult your CA, who would review the collaboration agreement in detail to determine the nature, whether taxable or not and the relevant DTAA clause. Thanks.
We are an corporate assessee, we need to know, if the original TRC is required or scan copy is enough to comply with the provisions of section 90(2) of the Act.
I don’t think you would need the original TRC. However, you may ask for a notarized copy. Thanks.
Agile Pharmachem wants to pay Sales Commission to a non-resident Indian in USA in USD by remitting the money directly into US bank. This party to whom commission is to be paid is a non-resident brother of the proprietor of Agile Pharmachem.
We would like to know if TDS is to be deducted during remitting money to USA.
Awaiting for your quick reply by an email to us.
Thanking you,
Regards
Agile Pharmachem
Jatin Shah
whether tax is liable for payment for purchase of machinery from Singapore based company not having PE in India?
Based on only this limited information, I don’t think so but please contact your CA. Thanks.
Dear Jigar,
Great service is being done by you by way of free advice. I am on verge of converting my status to NRI and account to NRO/NRE. I am looking for name of Bank who is now sane enough to honour this latest Notification which does not require 15CA/CB for transfer to NRE from NRO. Any suggestions? I have checked with my current bank ICICI and nor surprises there.
Thanks,
Komal
Thanks for your nice words of appreciation. Thank you.
When you check with any bank, they always are supportive. Only when you actually do the transfer, you realize whether any surprises or not. I would recommend to explain your situation to the bank and what you want to do and fully understand the information or document requirements of bank and get that in writing. I hope you are able to convert the funds very easily. If not, do let us know. Thanks.
The provisions can be interpreted as above & remmiter can claim, not to submit 15ca/cb to bank for the remittance not taxable under the provisions of the act
But one practical difficulties which one needs to face that Banker will furnish you Master Circular 6/2013-14 in which under point A-20 all bankers are directed by RBI to remit only after receiving the prescribed certificate from CA i.e. 15CB.
The revised circular is issued after the master circular. Also, master circular consolidates the RBI’s various circular for the year for everyone’s benefit. You would need to see the master circular for 2014-15. thanks.
Dear All,
I want to know that I have a client in Netherland Having Tax residency Certificate and no PE in India certificate Given to me. Should I make him payment after deducting TDS or grossing up the amount and pay TDS from my pocket or I shoul not deduct TDS.
and if I dont Deduct TDS than What all formalities i Have to furnish along With 15CA.
Please Reply as soon as possible. Its Urgent
The nature of payment, terms of agreement and the DTAA are most important in your case. The nature of payment determines the TDS rates and article number in DTAA; terms of agreement determines whether grossing up or not; and DTAA guides whether any relief (TDS at lower rate) applicable or not. The certificate to be issued in Form 15CB and then you may also have to file 15CA onlie to Income Tax department and then submit both forms to the bank for the payment. Thanks.
Dear Mr. Jigar Patel,
I basically pay royalties to the authors residing out of Indian and deduct tax @ 25.75% as PAN and TRC is not available with them.
Few of them has asked to receive money in CASH when they visit INDIA and few asked to pay their families residing in INDIA. Is this fine if we follow the practice of deducting tax U/S 195 and them make payment in INR or CASH ?
I have noticed that there is an amendment to quote 15CA number while filling the income tax return. What is the concept behind this chnage and what if we dont quote 15CA numbers for the payment made in India ?
I need to your inputs in this matter.
Thanks
Vandita Saxena
1. If you are deducting TDS as per income tax laws for any payment in India, it would be fine. However, I do not see any benefit of this to your NRI authors.
2. We can not recommend payment of royalties in Cash or to their families as I would assume it would be off the books i.e. may not be reported as income by the authors/recipients.
3. 15CA is required for any payment to NRIs and may not be required if payment to any resident. Thanks.
I HAVE SOLD INHERITED PROPERTY IN INDIA AND RECEIVED PAYMENT IN NRO ACCOUNT NOWI AM PUCHASING PROPERTY OUT SIDE INDIA AND WANT TO TRANSFER FUMDS FROM INDIA TO OUTSIDE INDIA FOR MAKING PAYMENTS OT PROPERTY SELLERAGAINST PURCHASE OF PROPERTY.
PL CONFIRM WHETHER 15CA/CB WILL REQUIRED FOR SUBMISION TO BANK FOR TRANSFER OF FUNDS AS THE BANK IS ASKING THE SAME
15CB/15CA would be required as the payment for sale of property could be considered as a payment subject to income tax. Please contact your CA for the same. Thanks.
I have borrowed USD 25000/- from my brother – an NRI living in US. This was in March 2012. The amount was remitted by him from his US Bank account to my ICICI Bank account. Now I want to pay back the amount and transfer to his US Bank account. Please tell me the procedure to do this.
Thank you
Regards
Jayakumar
Contact your bank, explain the situation and remit the funds. It is allowed. Thanks.
I have some funds in my nro a/c i want to transfer it into my nre a/c which is linked with same user id both a/c are with icici bank this money is gifted by my father to me on my birthday what is the procedure to transfer this money i live in new York
Contact your ICICI bank branch and give proof of gift and/or other documents to satisfy that the amount is after tax/not taxable and they will transfer the funds. 15CB/15CA not required for non- taxable transfer and/or for transfer by non-residents towards family maintenance and savings. Thanks.
Hi – Just wanted to let you know that I did need a PAN card after all… (in connection with my question earlier.) Thanks for your help. D
Thanks for your comments on our blog. I am not sure why you would need PAN. I had a similar case where her father left funds as inheritance and the money was transferred without PAN. It is on the bank for the documents required. I would just change the bank and transfer than apply for PAN and enter into Income Tax’s books. Let me know if you already got the PAN and transferred the funds or still not done.
Whether Form 15CA require to file for repayment of loan.
Thanks in advance.
As per FEMA, NRI can give loan either on repatriable or non-repatriable basis and certain conditions apply for in each type of loan. If repatriable basis, the amount can be credited in the NRE account without 15CB/15CA. If loan given on non-repatriable basis, amount can not be repatriated but needs to be credited in the NRO account only. Out of NRO account, if the nature of remittance is not included in the specified list, 15CB/15CA may be required. Thanks.
Dear Mr. Jigar,
Can Non-Resident transfer his PF Settlement money from NRO to NRE Account? Also, his status as ‘Non-Resident’ should be viewed from Income Tax or FEMA point of view?
1. Yes
2. FEMA. Only a non-resident under FEMA can open and maintain NRO/NRE accounts. Thanks.
if a company pays freight for import or export of goods does 15 ca & cb required if freight amount is in crores.
The notification exempts payment for freight insurance. I would think for freight, 15CA/CB would be required if amount is in crores. Thanks.
Dear Mr. Jigar Patel,
Thank you very much for your posts and clarifications. It is really helpfull for financial novices like me.
Can you please clarify on my below question?
As per FEMA, NRI can give rupee loan to his close relative provided the loan tenure is more than 1 yr and there is no interest applicable. Is there any other condition? Can the resident close relative use the money in whatever way he wants? Also, does the Loan Agreement need to registered with any institute?
Thanks & regards,
Sagar.
I received a site in my brother’s will, and sold it before transferring it to my name. I know that I need to pay on any will, tax for Rs. 50,000, but my question is that do I have to pay a capital gain for the whole amount? I did not register the land in my name. I am a NRI and do not stay in India for more that 180 days, as required by the rules, but I do pay income tax for other incomes.
1. I am not clear as to how you were able to sell the property if it was not transferred in your name. Keeping that aside,
2. Someone has to pay the tax as the sale was of a property situated in India and the sale resulted in the capital gain.
3. A calculation of capital gain to be worked out based on the indexed cost of acquisition / improvement of the property and tax @ 20% to be paid.
4. As you are a NRI, TDS would have been deducted by buyer. If not, you would pay the tax.
5. I would recommend you hire a CA and get this sorted out. Thanks.
Can a certified form 15CA/CB can only be given by a practicing Chartered Accountant or can it be given by any CA? I want to remit some of my funds out of India since now I am settled outside India. ICICI bank is requesting for form 15CA/CB to transfer funds from my NRO account. My brother is a chartered accountant working in India in a company. Can he sign and give Form 15CA/CB even though he is not in practice? or do i need a practicing CA for these forms?
I don’t think your brother, who does not have a COP, can issue the certificate as the definition of Accountant means a chartered accountant who is entitled to act as an auditor of Companies under the Income Tax act. Thanks.
Thank you. But As per Income Tax Act ““accountant” means a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949), and includes, in relation to any State, any person who by virtue of the provisions of sub-section (2) of section 2268 of the Companies Act, 1956 (1 of 1956), is entitled to be appointed to act as an auditor of companies registered in that State.”. If you see the above definition of accountant it says a CA and includes a person entitled to be auditor so i interpreted it to be a CA or a person entitled to be a auditor. Please clarify.
15CB and 15CA certificates only require Membership number. There is no way bank or Income Tax department would know whether your brother is holding COP or not. However, I think COP would be required. Thanks.
I have OCI status and have been living abroad for more than 10 yrs now. My parents have obtained permanent residency and now live with me since the last 2 yrs. Their savings etc which was solely earned in India is now in a NRO account. They have been filing tax returns in India every year. How do we go about transferring the money in NRO account to NRE account and what documentation/forms are required. Any guidance in this regard will be much appreciated.
Please contact your bank for the list of documents required to transfer funds to NRE. If taxes if any paid/deducted, your parents may be able to transfer the funds without 15CB/15CA. If bank won’t do it, contact your CA who filed their tax returns for the forms. Let me know if you aren’t able to transfer. Thanks.
Is it necessory to submitt 15CA and 15CB in case of amount paid for import of material/machinery which we are going to use for our business or sale.
For supplier, sale of material/machinery is income, which could be taxable depending on DTAA agreement with supplier country and whether supplier has PE in India. As banks does not want to take responsibility whether taxable or not or TDS to be deducted or not, 15CB/15CA may be required. Some banks may be processing without 15CB/15CA and some may ask for a declaration and/or certificate from client or CA but not in Form 15CB. Fortunately or Unfortunately, bank, being authorized dealer for dealing in foreign exchange, may have different requirements. Thanks.
Hi Mr. Jigar,
I have a question related to NRO to NRE fund transfer.
My parents, who currently reside in US with green card, sold their house in India.
They have paid the applicable capital gains taxes and have been filing related tax returns in India every year. The money is currently sitting in a local (India) account in SBI.
My parents have a NRO and NRE account with Citibank. We want to transfer part of the money from the SBI account to Citibank NRE account.
Looks like we would need to first transfer from SBI to citibank NRO account, and then to the NRE account.
My questions:
1. Do I need to file Form 15CB in this case to transfer funds to NRE account?
2. What is the purpose of Form 15CB? The “remittance” referred to in Form 15CB is supposed to describe the transaction to transfer funds to NRE account, OR is it referring to the transaction that generated these funds, that is, the sale of the house?
Thanks
Sunil
1. You would need to contact your bank where you have NRE account (Citi in your case) to understand the documents required and/or procedures for transfer.
2. As the source of funds is sale of property, which is taxable in nature, 15CB may be required. As the tax, if any, has been paid, bank may transfer without 15CB but just on a declaration / certificate not in form 15CB. However, it would be a hard sell.
3. Please contact your CA who has been helping you with taxes, and he will provide the 15CB or any other certificate to transfer the money. Thanks.
Thanks for the prompt reply.
Could you please also address my second question – Is Form 15CB supposed to describe the transaction related to the transfer of funds to NRE account, or is it supposed to describe the transaction that generated the funds in my NRO/resident account (in this case the sale of the property in India)?
Thanks
Sunil
It would depend. If you sold the property years ago, NRO to NRE would be okay. In your case, as the property was sold in the same/last year, my suggestion would be to indicate sale of property. You may also combine both i.e. transfer of NRO funds on sale of property to NRE. In any case, you would need to provide the source and/or documents to the bank’s satisfaction allowing them to actually transfer. Thanks.
Sir
My Aunty is residing in uk, has ordinary joint savings account in SBI with my Maternal Uncle(his brother). This is a local savings account. The balance of Rs. 700000 money belongs to her only. The money is not liable to tax. As it is just her savings of life.
Now she want to remit her money in her last days of life. I checked the matter and found the Income is not liable to tax in India.
The manager of bank requires 15ca-15cb certified by CA although my uncle declared that Income is not liable to tax. And My aunty is not having PAN.
She also not having any NRO account in India.
What to do in this matter.
1. For 15CB/15CA, PAN is mandatory.
2. The declaration may or may not work as it would depend on the bank.
My advice would be to convince the bank to transfer without 15CB/15CA as it may unnecessarily delay and complicate the process.
Dear sir,
I have deposited Rs. 500000( Five lakhs) in NRO fixed deposit for three years in SBI NRI branch. The money was transferred from my NRE account. The bank was deducting TDS for the interest from the deposit. I want to transfer the total maturity amount to my NRE account in the same bank. I do not have any other money in my NRO account. When I inquired about the procedure of transfer the bank has send me Form 15CA and asked me to send the filled form back to them. From many of your replies I have seen that there is no need for form CA or CB for the amount which is not taxable and for family maintenance and savings. As I have paid TDS on interest, is the condition is satisfactory for me not to submit form CA. Pls advise.
Thanks & Best regards
In your case, please convince the bank that money transferred from NRE account in the same bank and TDS deducted by the same bank so 15CB/CA may not be required. If you can’t convince them, comply with them or change the bank. Thanks.
Hello Sir, I need some clarification on transferring money to US.
Currently I reside in US. I am taking loan against my property in India which I bought when I was in India. THe bank said that I have to have NRO account in order to deposit the loan amount here. They said for transferrring that loan amount to US, I need to file Form 15CA and Form 15CB. Since this is a loan amount, whether I need to pay taxes for this. Also please let me know whether once the amount is transferred here to US bank, will I be able to use the amount immediately once it is deposited. Please clarify what is the detail procedure for transferring money to US obtained through loan against property. Thanks.
As per RBI rules, the loan amount received against shares, securities or properties in India is to be retained in India and not to be remitted abroad. Loan amount cannot be credited to NRE or FCNR accounts as well. Thanks.
Hi Mr J Patel,
I have a property in india which i had bought through NRI loan via NRE account. I would like to sell that property and bring the money to NRE account from NRO account. Do I need to submit 15CA/CB form for that.
Please reply.
Thanks.
As sale of property could result into capital gain for you and you may have to pay tax on the sale, 15CB/15CA would be required for transfer of funds. Also, if you have bought property from NRE account, you may be able to credit the funds that you paid out of NRE for acquisition (your share or loan installments), directly in the NRE account. And, only gain may be credited into NRO account. You would not require 15CB/15CA for crediting the funds in NRE that you originally paid out of NRE. Thanks.
Dear Sir,
I am working in Singapore from few days now i want to send money in india, please tell the procedure to send money and there is any limit to send money in india.
thanks
mahesh
There is no limit or restrictions for sending money from Singapore. However, I would suggest you to analyze the purpose why you are sending – family maintenance, investment, gift, loan etc. and accordingly determine whether to send in your account or your relatives account and also if your account, whether NRE or NRO. Your 5-10 minutes can help you immensely in long term and could save lot of time and money in future. Thanks.
Dear Mr. Jigar,
I have one query, the company where i am working is in caution list of RBI, i want to purchase some part of air craft outside from India. what documents i need to fill up and will RBI allow me to route the funds out of India.
With Regards
Ankush
If your company importing the parts for manufacturing? You may. However, I suggest you to approach RBI and they will guide you better. My experience with RBI is that they are very helpful. Thanks.
Thank you
Hi,
I am going for Masters from a university in US.
Will I require form 15CA, 15CB for paying my tution fees to the university, either by a wire transfer or for a demand draft issued in the name of the university?
No. Travel for education, includeing fees, is covered in the specified list and would not require 15CB or 15CA. You may be able to transfer funds from your bank account just by a declaration. Thanks.
Hi Jigar,
I came across this blog recently. Your work is highly appreciated and is very useful. I am a US permanent resident. I have couple of questions regarding transfer of money from local Indian account (Syndicate Bank) to ICICI NRI accounts.
1 – The initial funds deposited in the SBI account are from my dad. Assuming the taxes have been paid (on the interest earned on these funds), can the money be transferred to my ICICI NRO account by letting the bank know that the initial source of funds are a gift from my dad?
2 – If (1) above is possible, can the money from my ICICI NRO account be transferred into my ICICI NRE account? (the reason I am asking is because the initial principle was not from me but from my dad) So, the question is whether this money is repatriable?
Thanks in advance for your help.
Much appreciated.
Regards,
Harsha
1. Just write a check from syndicate bank to ICICI bank and it can be transferred. here is no difference between your resident account with Syndicate Bank and NRO account with ICICI, except that syndicate bank does not know that you are a NRI, which you are supposed to let them know.
2. Transfer from NRO to NRE is allowed. In India, a resident can give gift to NRI close relative upto certain limit per year (was $200k then reduced to $75k and now $125k). The gift from father to son is not taxable. Your father can also remit the funds from his account to yours in the USA as a gift. Thanks.
Thank you Jigar! This is very helpful.
Harsha
Dear Sir,
I have a question on transfer of money from NRO to NRE account. I recently sold a property in India. Buyer deducted the tax at source. The remaining money was deposited to my NRO account. CA in India helped to file the tax. Because it was a property sale and long term capital gain, we paid 20.6% tax (we were told by CA). Buyer paid the tax on behalf of seller (i.e me). CA issued him a challan for the amount and after he paid the tax, after that CA issued him form-27A and at the last CA filed the tax for me using his challan number and details. We are getting TDS certificate soon.
Note: This was an advance tax, so CA is saying that he will file final IT return next year financial year.
While calculating the tax liability, CA told us two options: Give the tax on the full long term gain (e.g if purchase price was Rs. 20lacs and selling price was Rs.80 lacs then pay the tax on Rs. 60lacs gain. Then in next year financial year, we need to file the correct tax (meaning considering the Indexation) and then apply for refund. It can take ~2 yrs to get the refund. The second option was to submit a request for tax assessment for Lower TDS (basically the right amount of tax after considering indexation). So we opt that route and we got the letter for lower TDS from IT dept.
Now, every thing is set (means money is in NRO account, we have paid advance tax..). Question is: Do I need form 15CA/CB to transfer money from NRO to NRE account. I am the primary applicant of both the accounts?
Bank is asking us to provide form 15CA/CB.
Also, in form 15CA, who should be the “REMITTER” and who should be the “REMITTEE”.
Bank is saying because money is in my NRO account and I am transferring it to my own NRE account, both Remitter and Remittee should be myself. But my CA is saying that, tax was deducted at source and lower TDS certificate was issued to deduct the tax was for buyer, Buyer should be the REMITTER and I am the REMITTEE.
Can you please help us to explain this complicated situation? I need second opinion.
Do I need form 15CA/CB? and who should be the REMITTER and REMITTEE in our case?
Your reply will be highly appreciated.
Thanks
-Raj
1. As the funds are taxable in nature (sale of property), 15CB/15CA may be required. If you can prove to the bank that tax has been deducted, they may still insist on CA certificate just to be sure.
2. Had the funds transferred from buyer’s account to your NRE account, your CA would be right that buyer is the remitter and you are remittee. However, as the funds are in your account, now you would be both remitter and remittee. Also, the bank details of remitter, where funds are currently lying (your nro account) would be relevant. Thanks,
Dear Sir,
We have to remit euro 600 to a person who does not have PAN in india and he has rendered services for us by conducting pre-dispatch inspection of our material.
As i understand the payment is below 50000 hance we have to deduct the tds 25% on full value and to file part A of form 15CA.
Pls. suggest.
You first needs to determine if the service is taxable in India. Only if taxable, you would need to deduct TDS at applicable rates. Thanks.
I recently sold my property in India and have approx INR 1 Crore in HDFC NRO account. Can I transfer this amount to NRE account (I akso have NRE account with HDFC)? Will there be any taxes that I have to pay when I make this transfer?
There is no tax on transfer. However, you would need to pay tax on the capital gain as a result of sale of property in India. Only after payment of tax, you may transfer the funds. Thanks.
Hi sir,
I have NRE account with HSBC india. I am planning to settle in india, as resident.
What are income tax rules if i loose nre status for this year mid way and what will happen with money in wealth management mfs etc linked to nre when i was under nre.
What is best way to keep investment/ saving etc to save income tax for nre to resident tarsfer
regards
harshal
On return to India, you are not allowed to maintain NRE account and the interest would be taxable. To save tax on interest, you may transfer the funds to RFC – Resident Foreign Currency Account. The interest on RFC account is exempt from tax for NRIs as well as for Not Ordinary Residents. Thanks.
Sir i want to pay fees for visa purpose to canadian govt, bank is asking me to file form 15ca &15cb .whether form 15cb is applicable to me?if applicable what is the tds rate for this?
You would not need 15CB/15CA for Visa fees. Also, 15CB/15CA is not required for travel for business, education, pilgrimage or under basic travel quota (BTQ). Thanks.
I am citizen of USA and India. I am dual citizen. Can I legally open a domestic fixed deposit instead of neo deposit? Will I qualify as senior citizen if I am over 65 in order to earn more interest?
You have lots of FREE knowledge to share with others which is very good. Thanks
Only Residents are allowed to open Resident accounts. NRIs can only open NRO, NRE or FCNR account. The NRE accounts are tax free and fully repatriable so more money with you than resident accounts, which are taxable. Thanks.
Dear Sir,
I have two questions:
1. I received a prof fee for teaching in a country with DTAA that was taxed @ 35 %. i did not disclose this income as the income was already taxed. Was i right ?
2. i received a fee for teaching in a country where we do NOT have DTAA and the organizers want to deduct 24% tax- how will this income be treated for tax calculation in India ( I am in the 30% tax bracket)
thank you for helping
1. If you are an Indian resident (ordinary resident), your global income would be taxable so you would have to disclose all your worldwide income in India. For any tax deducted, you may get a relief from the income tax for any tax paid in the foreign country. If your residential status is “Not Ordinary Resident” or “Non-resident”, you foreign income while physically presence outside India maynot be taxable. As a result, answer to your questions would depend on your residential status. If you are an ordinary resident, you were not right; if not-ordinary or non-resident, you were right.
2. Residential status would also apply in #2. Please check if India has DTAA or any other agreement with the country or not. I think there will be one. If no DTAA or any tax agreements and you are an ordinary resident, unfortunately, it could be taxed twice. Thanks.
Hello Sir,
Greetings of the day..
I had a query regarding remittance to non-resident. I have to attend a foreign conference in USA which include registration fees, accommodation charges etc. As I have not received any tax residency certificate from them.
do I need to deduct TDS by grossing up the amount ? Also, could you also help me to know the impact of service tax under reverse charge mechanism for import of services.?
Thanks & Regards,
Vicky
Foreign conference, registration fees, etc. may qualify under the business travel or travel under the BTQ and TDS/15CB/15CA may bot be required. Thanks.
dear sirs
my friend US resident citizen visits to India 5 years back under tourist visa. he opened SB a/c in a nationalised bank. he deposits frequently money (cash). then he invested in domestic fixed deposits for the past 5 years. now he went back usa. he wants to transfer the money from sb and fd accounts (matured and transfer to sb accounts). whether it is possible wire transfer of funds. CA certificate required. he has no source of evidence for his deposits.
He would need to prove the source of funds. If the amount deposited are from fund he brought from India, it would be okay. If the amount deposited are from gift received in India, he needs to verify whether gift from close relative or not. Gift from relative is exempt from tax, whereas gift from non-relatives are taxable. Only after providing the document/information to bank that tax, if any, has been paid, he can take the money. If the bank insist of CA certificate, a CA needs to review the information and documentation and issue the certificate for you or your friend to remit the money to USA. Thanks.
sir
i not clarify the issue
my friend brought money from usa by unaccounted way. then he deposits by indian money.
wat is the taxable rate if he have unaccouted money.. and going to transfer USA.
KINDLY GUIDE ME
Unfortunately, only accounted money – brought to India (or gift received) or accounted income (on which tax have been paid) can be credited and/or remitted abroad or transferred to NRE. Thanks.
sir i have some question.
i am indian company. i will going to sell my product to a foreign company.Foreign company is asking that we must be a registered vendor in there country. For this we hire a agent in foreign country and he did registration for us. and he charges 500USD (reg fee 200 +documentation 100 +service charge 200).
Now my question is whether while paying to that agent we should deduct TDS or not??
Agent doesnot have PAN in india, ,or any PE in india nor he is rendering any service in india nor receiving money in india.
i am confused whether circular 786 and 23 is applicable in this case and no TDS .
Thanks
It would depend whether you have set us a branch, office or wholly owned subsidiary or not. Also, whether the registration charges are of the company or of agent. I would think the TDS may not apply however, you would need to review the transaction in detail. Please contact your CA. Thanks.
thank you sir.
Sir,
I have query regarding that is liable to deduct TDS in India on re-inspection fee which is payble to China (Shanghai).And another query was that What is Form 10F and when it was required when filling 15CA and CB.
Thanks
You need to nature of the fees to determine if TDS is applicable or not. Form 10F is a self declaration relating to Tax Residency Certificate obtained from the country of residence for claiming the benefit of DTAA (Double Tax Avoidance Agreement). If you are claiming the relief, 10F may be required; if not, not required. Thanks.
Dear Jiger,
I am residing in Canada for the last four years under Permanent Resident status, soon will become citizen of Canada. Before migrating to Canada I worked abroad for fourteen years under work permit. Recently I bought a house in Canada financed by bank. Now i am planning to sell my property in India to payoff certain portion of housing loan in Canada. The property I acquired in India during my stay abroad with my foreign earned income, before migrating to Canada.
Please advise how can I transfer the fund to Canada without any red flag.
Thanks
Kumar
You can transfer the funds to Canada on sale of property after payment of income tax. As sale of property is a taxable transfer, your CA would issue the certificate in form 15CB and you would need to file form 15CA to the incometax department and can transfer the funds. Also, as you are a NRI, TDS for the tax amount needs to be deducted by the buyer. Let us know if any question or need help for the same. Thanks.
Hi Jigar,
I’d like to know what are the TDS rates as per your response: “Also, as you are a NRI, TDS for the tax amount needs to be deducted by the buyer”. Thanks.
The TDS rate for short term capital gain is 30.9% and long term capital gain is 20.6% in case of NRI seller. Thanks.
SIR,
I AM A RESIDENT PERSON OF ITALY . I AM A PVT. LTD COMPANY IN INDIA DEALING IN SHOE COMPONENT BUSINESS. I HAD PURCHASED (IMPORT PURCHASE OF RAW MATERIAL AND MACHINERY SPARE PARTS FROM ITALY . )
NOW I WOULD LIKE TO MAKE THE PAYMENT TO THE ITALY FOR 11000 EURO (FOREIGN REMITTANCE)
I HAD SUBMITTED THE IMPORT DOCUMENTS IN MY BANK FOR FOREIGN REMITTANCE BUT BANK HAS REFUSED TO ACCEPT THE PAPERS AND THEY TOLD US TO SUBMIT FORM NO 15CA & 15CB .
WE WOULD LIKE TO KNOW WHETHER THESE ARE COMPULSORY TO SUBMIT OF NOT . KINDLY BE INFORMED THAT WE ARE SIMPLY WANTED TO MAKE THE PAYMENT AND NO INCOME IS GENERATED IN INDIA AND WE ARE NOT LIABLE TO DEDUCT ANY TDS ON IT.
If no income is generated and transfer is not-taxable, for import of machinery or raw material, 15CA/15CB is not required. If you are buying from your holding company/group company in Italy, transfer pricing provision may apply. Thanks.
Dear Sir,
I am an NRI since Dec 2004. I was continuously transferring my money to my brother bank account through NRE A/C till now. Total amount approx, I gave him is 80 Lacs, Recently he started returning my money with same value (No any profit/gain) but not one time. He returned around 15 Lacs. I had deposited this amount by myself to my NRO account. I have two below question.
1) Is it tax liable on returned 15 Lacs amount ?
2) Can I transfer my this amount from NRO A/C to NRE A/C ?
Thanks and appreciate your great work..
1. Rs. 15L may not be liable for tax.
a. If the amount was considered as a loan, it needs to comply with the RBI regulation regarding loan to close relative i.e. close relative, 0% interest, minimum 1 year, loan out of inward remittance or NRE account etc. In that case, you can directly credit the funds in your NRE account.
b. If you are considering 15L as a gift, gift from brother is also not taxable in India.
2.a. If your loan comply with all the requirements of a loan to close relative on repatriable basis, it can be credited to NRE directly.
2b. Yes, you can transfer the gift received from close relative from NRO to NRE. I do not think you would need 15CB/15CA for the same. Thanks.
Dear Sir,
One of my client is Foreign National.
She had opened a NRO savings accounts in India on which she earned Interest on which bank deducted 30% TDS.
Now she wants to repatriate the funds back from her savings accounts,
my question are
a) whether she require to obtain 15cb
b) After obtaining 15CA whether she has to file 15CB.
c) who has to sign 15CA form chartered accountant or my client.
d) 15CB certificate should reflect only the interest received and TDS deducted amount or the whole fund amount which is to be repatriated.
Eg:- on 100 lakh deposit interest earned 5lakh
TDS deducted 1.5 lakh
amount to be repatriated is Rs 103.5 lakhs
Q :- 15 CA/CBb of what amount is to be taken?
Dear Sir,
I suggest you read my all blogs and comments related to the subject.
a) 15CB may not be required if only interest is to be repatriated.
b,c)15CB issued by CA and then 15CA filed online and acknowledgement signed by client.
d) It depends on client what amount he/she wants to repatriate. If full, then, the source of principal also would need to be verified.
Thanks.
Dear Mr. Jigar,
Thanks for providing valuable information in your blog, its really useful
I would like to get your advise on the below
– I have bought a property in india from my NRE account in 2012 december
– I sold the property in july 2014 and received money for the sale in my NRO account
– I did self assessment and paid tax for short term capital gain
Now can i move the funds from NRO to NRE account with form 15CB/15CA? what is the procedure i should follow?
Thanks
Thiag
Please consult your CA, who will help you comply with the form 15CB/15CA requirement and with liaison with bank to transfer the funds. Thanks.
Dear Mr.Jigar ,
I wanted to know if the FD which were invested while i was a resident and subsequently had to get converted to NRO FD also qualifies to be converted to NRE FD?
Regards
Roby
You may not be able to convert the FD directly from NRO FD to NRE FD. You would need to break the NRO FD, credit the funds in NRO savings account, transfer funds from NRO to NRE savings account and then create a new FD in NRE account. Thanks.
Hi,
Thanks for the detailed description. My question specifically concerns FD.
U have mentioned that FD opened when a person was resident Indian has to shifted to NRO Account when that person becomes an NRI and subsequently can be shifted to NRE Account. Is Form 15 CA and CB required for these transfers?
Thanks,
Anil
There is no requirement for conversion of resident account to NRO account. However, for NRO to NRE, the source of funds is important. I would assume the source would be taxable so 15CB/15CA may be required. Thanks.
i understand that your view is that if the payment to non resident has no income component then forms 15CA and 15CB are not required. But then why Rule 37BB has excluded 28 items specifically? These items have also income component and hence even without its specific exclusion, going by your view, 15 CA and 15CB are nor required.
The specified list is to be used a guide for the banks and tells them that even if these transfers may be regarded as taxable payment, 15CB/15CA would not be required and are specifically excluded. Thanks.
thanks Mr Jigar.
But how will the bank know that the payment is not taxable. They may not have the domain knowledge to dissect complex provisions of the income tax act and DTAA
sathyan
That is the reason for specified list. For others, they have a legal department and access to chartered accountants. And certain transfers such as inheritance, gift, transfer of NRO FD created from foreign funds on which TDS is deducted by the same bank, etc. can be easily determined whether taxable or not. Thanks.
Dear Jigar,
I need to know that Form 15CA/CB is required for the transfer of fund from NRO to NRE account for the Fund received against LIC Policies Maturity?
Or a simple statement in writing from CA stating: “LIC maturity amount is not taxable in India. As such the fund received from LIC maturity is transferrable from NRO to NRE a/c. There is no need of form 15CA/CB in this case” will do?
Thanks
Prakash
I think the CA’s letter should do. Good luck. Please update the end result for benefit of others. Thanks.
Dear Sir,
I am an indian resident retired from a PSB
Last year. I intend to remit appx 9000 aud to my daughter living in Australia.as a gift to meet financial needs.
Do I require to submit form 15 CA/ 15 CB for this transaction.
There is no need for 15CB/15CA. Please contact your bank and tell them that you want to gift AUD 9000 to your daughter and they will remit the funds. You may have to sign a request letter and/or declaration. Thanks.
Hi.u r doing such great job.i want to know that my father is in india.His residential status is resident of india.my father is greencard holder. My father want to sent money usa as for my mother and brother living expences and education expenses.my monther residential status NRI then if my father sent money to usa then if any tax implication?
The tax implication would depend on how much money he wants to send, to who, whether your father file tax return in USA as resident (1040). As per US gift tax laws, gift to any person is allowed upto about $14,000 per year. As per Indian gift tax, a resident can give gift of upto $125,000 to NRI close relatives per year. In USA gift tax is on giver and as per Indian laws, it is on receiver. Also, any gift received by foreign person is not taxable in USA but needs to be reported to IRS. Thanks.
Dear Sir
Can you please advice a solution to the below mentioned problem
I am an NRI working in Oman and I have investments in Indian Stock market thru a regd Broker . I started my Invesments in 2009 by opening a PIS (PORTFOLIO INVESTMENT SCHEME ) account – NRO . I have invested close to 80 lakhs so far and 90% of the investement was made from my NRI funds . The process was as follows
I will send funds from abroad to my NRO aacount . Then I will make an internal fund transfer from the NRO A/c to the PIS account . This fund will be utilised for buying shares . Now I sold many shares and the proceeds are now lying in my NRO a/c . I want to transfer this amount ( sales proceeds ) from NRO to my NRE a/C . How can i do that and what is the procedure ?
My Idea is to transfer all sales procceds in my NRO to NRE a/c .
Please advice
Thanks
Ravi
1. You should have invested through NRE PIS so all sale proceeds would go directly to your NRE account.
2. I suggest you to contact your bank and your CA and follow the procedures – 15CB/15CA and then transfer the funds to NRE. Thanks.
Sir,
I am working abroad from last five years from 2010 to till today. I opened NRE account recently one month back only. from Jan 2010 to Aug 2014 i was sending my foreign remittance money to my father and brother SB account. now is it taxable if i take my money from my father and brother account to my NRE account. Please reply.
thanking with regards,
Prakash
Only income is taxable. There is no tax on transfer. However, you need to determine the nature of transfer whether loan return or gift. If gift, NRI can receive gift from close relatives without any tax. If loan, the tax is only on the interest. Also, you may not be able to credit NRE account directly but may have to transfer the funds to NRO and then to NRE. Thanks.
Sir,
Thanks for reply.
Now I am in Ethiopia, please can you guide the steps to open NRO account.
regards,
Prakash C H
Any bank would be more than happy to open your account. I suggest you to contact the same bank where you have NRE account to open NRO account. Thanks.
What is the basis of determining taxable income and tax liability in case of repatriation of Import proceeds.
Not clear on your question. For payment of import of goods, there is no tax and no requirement of 15CB/15CA. Thanks.
Dear Mr.Jigar
If NRI gets a gift from close relative in cash, can the amount be credited to the NRO account?. The relative has sold an ancestral property and has give a part of the gain to her close relative in cash as gift.
If the NRO account is credited, can this amount be transferred to NRE account?
Thanks a lot. Jerome
1. I would suggest to receive such gift in cheque. Also, gift received from close relative is exempt for tax i.e. the gift giver needs to be your close relative and not other way around. e.g. mother’s brother is a close relativa but sister’s son is not so you can accept gift from mother’s brother but not sister’s son/daughter.
2. As your close relative wants to gift a part in cash, I would assume that it is from the cash portion of the deal, i.e. received over and above the sale price mentioned in the sale deed and it is considered as illegal.
3. For any gift, it is advisable to have a gift deed/letter that includes PAN of both gift receiver and giver. If the money is from cash source, your relative may not want to put that in writing and without writing, you may not be able to transfer funds from NRO to NRE. Thanks.
Hi Jigar
An Indian lady who is father’s sister of a resident of India wants to give a gift to the latter. This gift amount which will be about INR 80lacs will be deposited in her Saving Bank Account in India. This resident of India intends to settle in USA and remit USD 125000 from her saving bank account. Two questions.
1. Is it permissible to remit this amount from her normal Saving Bank Account.
2. what is the status in USA in respect of such funds being remitted from India.
Thanks is advance.
sahib
1. A gift from father’s sister is allowed and is not taxable. However, a gift from brother’s daughter is not allowed and would be taxable.
2. I am not sure of the purpose of remittance outside India – education, immigration, investment. The remittance is allowed for bonafide purpose. Thanks
Thanks Jigar,
Assuming the remittance from India is for investment as well as immigration purposes. Then what is the your answer to Q No.2.
regards
sahib
Yes, allowed, provided investment not in immovable property or other prohibited activities – lottery/gambling, etc. Please contact your bank for transfer. Thanks.
Dear Sir,
With out NRO a/c in what way or in which method we can transfer money to NRE A/c
Prakash
A resident account of NRI is called NRO account. A NRI is required to inform bank of his change of status and the bank would re-designate the account as NRO. I am not sure from where you would have funds if you do not have NRO account. Any current income after TDS may be credited to NRE provided CA certificate and 15CB/15CA procedures have been completed. Thanks.
Sir,
Please bear with me if my doubt is very basic. When it is said that the 15CB /CA certification where applicable is to be done by CA, can any person who cleared CA exams do it or is it mandatory that this has to be done only by a practicing chartered accountant? Thank you very much for your great work. Regards
The 15CA includes name, membership number of CA and the firm issuing certificate so a person who just cleared CA exam may not be able to issue the certificate. Thanks.
Hi Mr.Patel, Thanks a lot for your time!
I have sold a flat and my CA filed tax returns. I have the sale proceedings in NRO and bank asked me for 15 CA/CB to move in to NRE. My CA says to get one of the forms (CA or CB) i have to register something called digital signature (he says the online submission form is not allowing if he says digital signature NO). He is asking me to send some notarised copies of address proofs etc. Is this the standard procedure or is there anything else i can do?
Many Thanks
Digital signature is not mandatory. Form 15CB is a CA certificate signed by your CA and as a result your signature is not required. Form 15CA can be filed online and you can print the acknowledgement after filing the return and sign and send it to your bank. Digital signature for signing Form 15CA is not mandatory. Thanks.
My company has received money in form of share application money from abroad.My query we have received excess share application money which we are required to refund.We have initiated the process its refund of excess share application we are not required to deduct any TDS nor we are required to file form 15 CA/ CB.
Please advice as bank is insisting on these forms.
Deepti
Refund of excess funds does not require 15CB/15CA. Please try to convince the bank. If not, you may have to issue the same but in the nature of remittance, please indicate it is a refund and not taxable or subject to TDS. Thanks.
Dear Mr. Jignesh,
I have following three questions –
Q1) My mother has a resident savings account in HDFC Bank & a term deposit also.
I am in the process of converting my resident savings account in HDFC to NRO savings account as I have settled overseas.
Can my mother transfer the interest earned from her term deposit into my NRO account. This amount is not to be repatriated.
Q2) Recently, my mother transferred (off market) all her shares from HDFC demat a/c to my HDFC demat a/c. Now, when I will be converting my resident savings account to NRO the Demat status will also change to NRO. The question I have is will the future proceeds from the sale of this shares be eligible for repatriation. I am asking this because this shares were given to me and not bought from my overseas funds. Would you advise to transfer the shares back to my mother’s demat and only transfer after my demat has changed to NRO status.
Q3). In regards to repatriation of funds from sale of property in India does it matter whether payments to the builder were made from NRO or NRE account ? Is it less complex to repatriate funds from sale if payments for purchase were made from NRE account rather than NRO account?
Thanks in advance.
Dhiren
1. Yes.
2. Yes. It is not shares now so would get same treatment.
3. If payment is made from NRE, payment upto the the pricipal (actual cost) can be directly credited to NRE for 2 residential properties. Only gain is credited to NRO account and after payment of tax, it can be remitted abroad or transferred to NRE account. Thanks.
hi
I’m residing & working in UK for last 3 years. I had accumulated my funds (savings) in India Citibank a/c.
Now my account is converted into NRO account in UK, but the bank wants me fill 15CA&CB forms, will this money be taxed again?
Can my parents send me money as gift? will it be taxable?
Please advise. Looking forward for early response.
Thanks
Pooja
There is no tax on the transfer. Please review the source of funds. If it is in the nature of an income, 15CB/15CA may be required. If not, it may not be required. Also, it is your money so you can not gift to yourself. That being said, your parents are allowed to send equivalent of USD$125,000 i.e GBP 75,000 each per year as gift under LRS scheme. Please contact us if you need any help. Thanks.
Hello Sir,
I am working in Software company and we sell online and money come directly in our bank account. Recently, we have opened our branch in UK and now money go to our UK account.
Some of our client also pay via bank wire which was Citibank India but now we have moved all the transactions into our UK accounts. But one of our client has sent the payment via bank wire in our Indian account which we have to refund. Client requested his bank to recall the funds which we got. Citibank requested us to submit the following documents:
Debit Authority from the Customer /MIFT form
Form A2
Form 15CA & CB
Original FIRC (which needs to be endorsed)
Recall Telax copy
We have completed all the requirements except of 15 CA & CB because we don’t know the appropriate head for that.
Can you please suggest us the appropriate head for these funds so that we can make and send the funds to our client?
Awaiting your response.
Thank you!
Regards,
Pardeep Kanozia
“Refund or Rebate or reduction in invoice value on account of exports” is included in the specified list with RBI code S1501 and as a result, 15CB/15CA may not be required in your case. Thanks.
Sir,
Thank you so much!
It is mandatory by Citibank. Can you please advise me the appropriate head for these funds?
Look forward for your response.
Please get a logical reply why it is required. If you can not convince them, either change your bank or ask your CA to issue the certificate. Thanks.
Hi,
I recently became an NRI. I have to open NRE/NRO Accounts and close my Indian savings and FD’s. Can I transfer funds earned in India from NRO to NRE account? Do I need 15CB for this?
1. Yes, you can transfer funds from NRO to NRE.
2. You may need the 15CB if the source of funds is taxable e.g. salary, interest, capital gain or any other income. Thanks.
Sir, basically i need to know that even if i have to remit a sum of indian rupees 17000/- to my supplier in Switzerland for a purchase of equipment ( Machine spare ) for 12yr old machine, do i have to yet submit Form no 15ca and 15cb. Kindly advice, i would be oblige.
Thanks.
Regards.
Sameer.
15CB/15CA is not required for import of goods or machinery. Thanks.
Dear Jigar,
I am a NRI having NRE & NRO accounts. I have now become Karta of HUF, due to demise of my father. Can I transfer the funds from sale of HUF property (from HUF bank account), on which taxes have been paid, to my NRO Ac within the RBI stipulated amount of USD1M/year? Do I need to submit 15CA/CB? any other documents I need to submit? Appreciate thoughts & early response.
Many Thanks
As per Indian income taxes, you as an individual and you, as a karta of an HUF are two separate persons. I would assume that you have become karta of your father’s HUF. That money belongs to all the co-parceners (members of that HUF) including your mother, sister, brother, if any and not only yours. As a male, you only have rights to manage those assets/funds for HUF’s benefit. As it is not your money, you can not transfer to your personal savings account. Only on partition of HUF, the money can be transferred. Thanks.
Dear Mr. Jigar,
I have a unique situation and hope you can advice.
I want to transfer funds from NRO account to NRE account not for repatriation but for depositing the amount as a NRE FD. Is it possible?, if yes, then is there any simple way of doing it instead of getting the CA certificates or other Form 15’s?.
Many thanks in advance!
Yes. Most of NRIs (99%) transfer funds from NRO to NRE just for earning tax free return and get out of the TDS and filing income tax return routine. Requirement of 15CB/15CA would depend on the source of funds in NRO account. If the source is taxable (capital gain, interest, etc.), 15CB/15CA may be required. Please contact your CA and your bank where you have NRE account. Thanks.
Thanks Mr. Jigar.
The funds are of my dad’s. Wanted to deposit the amount in a NRE term deposit to save the TDS.
Is this also the case with normal resident account to NRE savings account.
Regards
A resident is not allowed to have NRE/NRO account. Any transfer from your father to you is either gift, loan or income. A resident father can give gift of upto $125,000 per year to his NRI daughter as allowed by RBI. While there is no tax on gift received from father, bank may not allow direct credit into your NRE. Also, loan from a resident in local funds can not be credited into NRE. An income can be credited to NRE provided TDS has been deducted. I would suggest you to determine the nature of transfer, follow related RBI rules, contact your bank and transfer the funds. Thanks.
Excellent!, thanks for your information. Much appreciated.
Regards
Dear Mr. Jigar,
I am an NRI working in gulf (tax free country) for past 2 years. However for the initial one year, without realizing, I did not open any NRI/ NRO account and transferred monies to my resident account with (x) bank.
After one year I realized that I need to open an NRI/ NRO account, which I opened with (y) bank.
Q1. Can I transfer monies from (x) bank (still in resident account status) to (y) bank NRI account and create FD? If so, do I need to some tax on it? What forms do I need to submit to transfer to NRI account?
Q2. My (x) account also has certain other amount from my previous salary, interest on FD’s etc on which tax is paid. Can I transfer that monies as well to my NRI account with bank (y)?
Thanks in advance.
As an NRI, you are required to re-designate your resident account as NRO. Transfer from NRO to NRE is allowed. Please inform your bank where you have resident account that your status has changed and now you are an NRI to change the account to NRO. Please contact your CA to issue you a CA certificate 15CB/15CA and contact your bank where you have NRE account to accept the funds. You are allowed to transfer all funds upto $1million per year from NRO to NRE. Thanks.
Hi,
I own a tours and travel company and organize international and national tours. Often I do arrange international tours for my clients for which I have to do remittance to my vendors (Intl hotels).
My bank asks for form 15CA/CB for every transaction I perform. Is it mandatory to provide the form for each transaction I perform?
Thanks,
Jayesh Jeshrani
Payment for Travel for business, for religious or under BTQ are included in the specified list that do not require 15CB/15CA. Please contact your CA and your bank. Thanks.
BTQ is USD 25,000 or equivalent right? Do I consider travel booking for my client within this limit? Also advice if this is per account (as I have multiple currency accounts). What if I do payments from different banks?
Thanks,
Jayesh Jeshrani
Please check with your bank and/or your CA. Thanks.
If Some beady import the goods from outside the india and for made the payment we have file the form 15 CA and 15 CB if bill amount in crore.
Any payment, whether taxable or not (including import), would now require 15CA/15CB, even if amount is Rs. 100 or in crores. Thanks.
Hello,
I have been remitting foreign funds to my NRO account (online transfer) and from that account also transferred to other NRO accounts for purposes of creating FDs. I did not know that funds in NRO account are not freely repatriable. Now I would like to move the funds to my NRE account. Have following questions –
1. Are Forms CA, CB required for the transfer of foreign funds (excluding interest) from NRO to NRE?
2. Since funds have been transferred among multiple NRO accounts, does it introduce any complexity in the verification of the source of funds and what would be the process in this case?
Many thanks !
1. The requirement of 15CB/15CA would depend on the bank where you have NRE account and the procedures followed by that bank.
2. Finding a money trail is easy as the one bank statement would show debit and other bank statement would show credit. While it may look complex for you, it may not be that complex for your CA or your bank. Thanks!
Dear Jigar,
I am a Green Card holder living in USA and have an NRE account in India which is funded by post-tax money sent from USA. I have been declaring accounts and the interest earned in India on US Tax forms and filling the details in FBAR annually for last several years.
I need the money back in USA now. Could you please confirm if the Rs. 50,000 per transaction (Rs. 2,50,000 per year) limit is applicable in my situation and if I need to fill in forms 15CA and/or 15CB to transfer the funds.
Thanks.
If your money is in NRE, You do not have any transaction limit. You can wire transfer entire funds (1cr or 10 cr or 100cr) to your US account. However, for higher amount, please negotiate with bank for better rates. This is very important. You could save upto Rs. 1/$ in better exchange rate. Thanks.
I am a resident of Canada and would like to open an NRE FD account. I am thinking of opening an account in my wife’s name (she is lower income earner) and then declaring interest in her name so that we can get taxed at a lower rate…would it be better to have a joint account with her name as first name or should i just go for account with her name only and with me as nominee?
Also do you have any recommendations for which bank to open NRE account with. I would like to lock in money for 5+ years and at present..It seems ICICI has best interest rates…
1. Interest on NRE FD is exempt from tax in India. However, you may have to pay tax in your resident country. Please consult your CPA in Canada for the same.
2. You can open account with any bank you are comfortable with. I suggest you select any one of top 5 – ICICI, HDFC, Kotak, Axis and Yes bank for the same. Thanks.
Hi Jigar, excellent blog!
I have a question, I just sold a property in India and I find there is no tax payable on capital gains – in fact, the TDS will be refunded to me. I want to repatriate the sale proceeds out of my NRO acct in India to my US account. Do I still need to obtain a Form 15CB or file a Form 15CA, considering that no tax is due?
best regards
Yes. As sale of property is a taxable transfer, bank would like to know whether it resulted in taxable income and/or tax to be paid. Without 15CB, they would not know whether any tax was due or not. Thanks.
Dear Sir:
I have an NRO account and I am a US citizen. I deposited money in this account in 2009 from a sale of property. My ex and I divided the proceeds and I paid my share of taxes for it. I repatriated some of the money in 2010 and I wanted to do the same now. But I am having a lot of issues due to rule change. My CA says that form 15CA is not required, but the bank is requiring it. The CA filled in the form 15CB, but it was in rupees and the bank is requiring the 15CB in FCY. Please can you let me know if 15CA is required and can 15CB be filled in rupees. I have been paying my taxes with IT department since 2009. The money is greater than 50000 and less than 250000.
Thanks
If you want to transfer the funds to US, the 15CB would required to be in USD (foreign currency). However, if you want to transfer to your NRE, INR would be okay. Please ask the bank the procedures for transfer from NRO to NRE and comply. OR, please contact your CA to issue a new certificate in USD. Thanks.
Hi,
A domestic company is subscribing for back up facility services from a us based company.
Need a clarification, whether this service will be eligible for TDS payment under 195(as technical service or not) If so, since there is a DTAA rates, do we need to take 10% rate? whether E.Cess will apply on 10% rate or not?
Thanks in Advance.
1. You would need to contact your CA who will read and understand your agreement and determine if it is fees for technical service or any other service subject to TDS.
2. For DTAA rates, TRC (Tax Residency certificate) would be required. It is also advisable to complete and obtain Form 10F.
3. DTAA rates are without cess so you would only apply TDS of 10% and not 10.3%. Thanks.
Dear Jigar,
Firstly, thank you very much for crating the informative blog which is providing very useful information about transfer of NRO to NRE and also for the responses given by you against the queries raised by NRI’s like us. I got your email id from the blog; hence writing to you – hope you can find some time from your busy schedule to answer my queries.
I recently became a NRI (on 1st April’14) and am working in Oman. I have made investments in Indian Stock market (secondary equity) through a registered broker ICICI Direct.com wherein I am trading online using my normal ICICI savings bank account before becoming a NRI. Due to lack of knowledge & time when I left for Oman for employment in April’14, could not close my existing ICICI bank resident savings account and continued trading with it.
However, at the same time , I managed to open a NRE / NRO account with HDFC bank as well before coming to Muscat based on my e-visa, employment letter and travel tickets. I have not remitted any amount yet into my HDFC NRE a/c though & deposited Rs 25,000/- through my ICICI savings bank account (cheque payment) for opening the HDFC NRO a/c.
I am now okay with closing the existing unused NRO / NRE account with HDFC as online trading through ICICI Direct.com will be far easier if I keep everything with ICICI by converting my existing ICICI bank savings account into a regular NRO account along with a new ICICI NRE account i.e everything through ICICI which I believe will be surely easier to maintain, manage and keep a track of.
I now want to open a NRO Demat account for shares trading (primary and secondary market) and transfer all my sales proceeds into my NRE a/c so that I can make use of the money per my convenience to meet my family expenses in Oman, shopping abroad, and most importantly for buying property abroad in Dubai & Muscat sometime in future. I am keen in buying property abroad to save high rental expenses.
Below are my queries:
1. Which of the NRO Demat account should I open the next time I visit India – I wish to repatriate all the sales proceeds into my NRE account going forward? Should I first close my HDFC NRO / NRE a/c before requesting ICICI to open/transfer the existing savings into ICICI NRO/ NRE accounts or ICICI will open it for me without bothering whether NRO / NRE is already opened for me with HDFC and then later on close HDFC NRE/NRO a/c? How much time will it take to transfer my money (approx Rs 10 Lacs./-) into the new ICICI NRO account and then transferring it to the ICICI NRE a/c using Form 15CB/15CA after all taxes have been paid for FY 2014-15?
2. The amount in question is approx Rs 10 Lacs./- as sales proceeds. I have not yet paid income tax on my capital gains as the financial year will close only on 31st March’15. Assuming that I visit India after that to file my IT returns in July and pay the applicable income tax which I believe should be a flat 15% on the short term capital gains for shares hold for 1 year; should I stop trading after 31st March so that when I apply for the transfer of sales proceeds to my NRE account in July / August, transfer happens smoothly as all income taxes would have been paid?
3. What if I continue to trade after 31st March as well – how do I pay my taxes on capital gains in such a case for 4-5 months into a new financial year because I cannot file my returns before 31st March 2016 for FY 2015-16? In such a case; will my sales proceeds still be allowed to be transferred to NRE a/c as well? ICICI DIRECT.COM directly deducts transaction charges and tax for trading. I have filed my IT returns religiously for the past 12 years.
4. How exactly does the trading happen with NRO Demat account – I mean how do I allocate the funds for trading on a daily basis? Will my ICICI NRO Demat account linked to my ICICI NRO account or be linked to my ICICI NRE account for allocating funds? After trading; where will the sales proceeds lie? Is there an option to link it with my NRE a/c so that I can allocate funds easily for trading , and retain all sales proceeds in NRE to meet my family expenses without bothering to transfer each time from NRO to NRE which I believe would need my physical presence to be in India every time?
5. Is there any limit on the trading amount imposed by RBI for a NRI as an investor for long term / short term trading, doing daily margin trading and futures/options trading? (example; Rs 100 crores or Rs 500 crores per NRI, etc)
6. What if I continue to trade using normal savings a/c and apply for NRO Demat after one year? I can continue to file IT returns for FY 2015-16 in July 2016 and pay income tax as usual as tax rates will be the same for both the resident Indians and NRI’s (flat 15% on the short term capital gains for shares hold for 1 year)? Do NRI’s have to pay advance tax as well for earning very high capital gains?
7. Lastly, to buy a property abroad – we have to use NRE a/c through cheque? Right? Is there any limit as to how many number of properties can I buy abroad or any limit on amount (USD) that a NRI can spend abroad on buying free-hold / lease-hold properties through NRE a/c?
Thanks and regards,
Nitin
This is a really long query. I suggest you call us for the same. Thanks.
Dear sir,
Great Blog. I wanna ask can we revise Form 15 CA once filed? Thanks inadvance.
While you can not revise. You may file the updated one with a comment. You may also send a physical request to the ITO for the same. Thanks.
Hello Jigar
I am a UK resident and citizen but a PIO. One of my Indian friends would be gifting me some funds – around 20 lac rupees) directly to my UK bank account. Would he need to deduct any TDS? Since I am directly receiving it in my UK account – would it be a taxable income for me in India?
Many Thanks
Vishal
Gift to NRI friend is not allowed and I doubt if any bank would transfer the funds from India to your UK account. Gift from only resident close relative is allowed under FEMA upto $125,000 per year. Thanks.
Many thanks, Jigar, for your quick response on this. Appreciate it.
Sir,
I have a current a/c in HDFC back . I have to purchase a software license from a US company for $6000 . This software will not be imported in India , it will be installed in US server.
The client agreement says the below:
“Licensee shall pay and be responsible for all sales or use taxes arising out of this transaction, all for all property taxes and other applicable to licensee’s use of software”
So i guess i cannot deduct any TDS or any taxes on behalf of the client. So what should be by correct process to buy the software?
Bank is asking me to submit online form 15CA/CB and CA certificate.
Should i file nil tax ? if not then what tax i have to pay.
Kindly help
Please provide a copy of the agreement to your CA, who will need to read in detail to determine if it is covered under the fees for technical services or any other service that is subject to TDS. He would also need to check the DTAA with US to confirm if it is covered under DTAA. Only after close review, your CA would be able to determine if any TDS is applicable and the rate. If you are to borne the tax, your payment would be net of tax and you would need to gross up the payment. For example, assuming TDS @ 10% is applicable, $6000 would be net and you would calculate gross payment ($6000/90%) i.e. $6667 and TDS of 10% i.e. 667 and then pay $6000. However, the most important would be to determine whether TDS is applicable and the rate of TDS. Thanks.
My parents have FDs in regular Indian resident accounts, the source of these funds is their after-tax savings and money is all white money. My parents are now NRIs so we want to open a NRO a/c and a NRE a/c for them and transfer these FDs from regular Indian resident a/c to NRO a/c and then to NRE a/c and eventually create a NRE FD out of them. How is this possible? And how to specify source of funds coz. they’re a result of decades of savings from income of my parents when they were working in India and paid taxes on them but no proof of that as of today.
Your parents will be allowed to do that as the amount is after tax. Please contact your CA or us if you need to transfer the funds from NRO to NRE. Thanks.
sir i have two doubts?
Q1. whether 15CA,15CB is required in case of remittance is for “imports of goods.”. Some banks ask 15CA,CB and some bank doesnot ask. So what is a correct way whether i should file 15CA,CB or not?? Since foreign company doesnot have PE in india, so their income is not taxable in india.
Q2. I am an Indian company. I send some sample for testing in South africa for testing. Foreign company test my sample in their own country(south africa) and send me a report. Now i have to make payment for the same service. Foreign company doesnot have PE in india. Whether 15CA,CB is required in such case also. Whether their income is taxable in India?
Thank you sir.
1. No 15CB/15CA required for import of goods.
2. You would need to study the agreement, categorize the nature of service, review income tax act for TDS rate, review India-South Africa Double Tax Avoidance Agreement (DTAA) and then make a determination if income is taxable and/or TDS is application and at what rate. Thanks.
Hello sir . Plz can u help me. I am living in U.K. But I have Indian passport. My parents want to give me £70000 to buy house in United Kingdom . What are the formalities required to give me this money plz? Can they transfer the funds straight to my UK bank account ?
Yes. Your parents will be able to transfer the funds stright to your UK bank account. They would need to contact their local bank in India and tell that they want to transfer funds as a gift, which is allowed under LRS. They would instruct the bank, make declaration, and bank would transfer the funds. You can have the funds in less than a week. Good luck with you new home. Thanks.
Thank you so much sir.
I am US resident having NRO account in India. My three children are US Citizes.I want to transfer $30000 to my children ($10000 each) as gift. can i tranfer and if yes what documents I need to give to my Bank. How much maximum money I can give as gift to my children in one financial year April to March.
Please advise.
Thanks
As per US laws, you can give gift of upto $14000 per year (calender year) to anyone including your children. If you plan to transfer the funds from your NRO account to your children’s account in USA, I would suggest you to transfer all your funds from NRO to NRE and then remit out or NRE very easily to your children’s accounts. Thanks.
Dear Mr.Patel,
My son who is in USA has taken single premium policy with LIC by issuing NRE cheques from Citi Bank about 3 yrs. back. . and. now he is eligible to receive Survival Benefit which is paid after 3 yrs. Now, LIC has sent the SB by cheque drawn on his NRE a/c, and mentioned in the covering letter that the Source of Fund is from NRE a/c and the SB chq also to be credited to the same NRE a/c. . But the Citi Bank says that 15CA/15 CB duly audited by a Chartered acct is also to be submitted and they refuse to credit. . Please let me know why the CA/CB is required when both the debit and credit are from/to the same NRE a/c maintained with them only. Why we have to spend for audit when the transaction is cristal clear ? Hardly there is any profit in the Insurance. Survival benefit is only a money back, but is being shown as income by CA in form 15 CB. Please clarify.
1. You would need to follow up with Citi bank and/or your CA to understand why it is taxable and why 15CB/15CA required.
2. You may also inquire citi through another NRI wanting to invest in the same policy from NRE funds. He may ask what if the matured amount can be credited to NRE account and tell if not, I am not interested. I would think the person will say yes as he needs your money. In that case, get it in writing in email and produce the same thing to Citi and follow up. Good Luck. Thanks.
Dear Mr. Patel,
Very sorry to bother,
In the above case, LIC has issued Survival Benefit (SB cheque
with instruction to credit the same to the NRE a/c of the insured, as the source of Investment is from the same NRE a/c. It is not LIC, but Citi Bank which is refusing the credit and insisting for Form 15CA/15CB. Please let me know whether Citi Bank is in order as the Insurance proceeds are not taxable in India.
Kindly clarify.
If you can’t convince your bank, you would need to provide the 15CB/15CA. Please contact your CA. Thanks.
Thank you very much Mr.Patel for your immediate reply.I appreciate the help you are rendering to NRIs who are not updated. with latest amendments.
B.Nagaraj
Dear sir,
i need to know if a person is being sponsored training which would benefit the entity in india in their business development and the company can claim it as a business expediency expense.
that training will be conducted in usa, so while remitting the fund to that educational institute do we require to fil form 15ca and cb. the amount is approx. 13 lacs.
cost includes training +food+accommodation.
ur urgent reply will be of great help
thank you
Yes, I would think so. Please contact your CA. Thanks.
thank you one more info,
do i need to pay tds to that educational institute which is not having an entity in india and its only usa based
Residents are allowed to remit funds for tuition and education outside India and it is included in the specified list that does not require 15CB/15CA. However, please check with your bank and CA. Thanks.
Respacted sir,
my son is in usa having NRO account, I want to remmitt USD 300000 , out of his funds in nro account consisting of original investment,l.T profit, and gift from me.all Capital gain is exempted, gift from father exempted. tax liability nil. I understand overall limit for NRI is 1 million USD, is this exempted for 15 CA , 15CAB certificate! if no can my C.A or me can use our e mai id etc.
While you try, the bank many not agree and you would need to comply with all bank’s requirements. Yes, you may use your email ID in 15CB/15CA. It is just a communication address where Income Tax Department may choose to communicate any updates or confirmation. Thanks.
This may be unrelated but is extremely important.
My fiancee bought a house & has registered on his name. He says he cannot add my name because lawfully he cant do so before marriage. Now when he is applying for bank loan, he wants me to be a co-applicant! Is it lawfully ok to be a co-applicant before marriage as per Indian laws??
I am finding this fishy!
Plz help or direct me to the apt page where I cant get some assistance.
While I would not suggest you to question the intent before you start a new long term relationship, you need to be careful. You may inquire about the value addition of being a co-applicant if the property is not in your name. Please also understand if you would have any personal liability for the loan or not. I would not advise you to be a guarantor unless you know your fiance very well. Good Luck. Thanks.
Dear Sir
I have a client named Linco industrial corporation who purchases from abroad as well as receives services from foreign company. Whether form 15CB to be obtained from CA.
Whether form 15CB to be obtained only for import payment for services if taxable or even for import payment of goods
Your response will be appreciated
Thanks
Mithun Jain
Yes. 15CB is not required for import payment of goods. 15CB may be required for taxable payment of services based on the nature of service, category of service after review of service agreement, DTAA and TDS rates as per income tax act. Thanks.
We are in export business, in our one of consignment we asked our importer for processing goods at their end. we have to remit $15000 for this manufacturing services there at accordingly payment $15000 to be made there at. Please guide us as to whether $15000 is subject to TDS or under DTAA no tax will be deducted. We have to arrange 15CA 15CB?
You would need to determine the nature of transaction whether service or whether you are buying processed goods. If goods, no 15CB/15CA would be required. If service, you would need to check the agreement, income tax act and DTAA to determine if TDS applicable or not and if 15CB/15CA required or not. Thanks.
Dear Sir,
A US citizen is providing service to an NGO for getting grant from USAID. He is supporting in preparation, submission of documents in USA and representing this NGO in USA. Whether TDS would require to deduct in this case? If so, US citizen does not have PAN of India, Do we need to deduct it at 20% rate or the rate of DTAA?
This is quite urgent, would be great if can get response soon.
Thanks a ton in advance
Shaili
I would suggest you check with your CA to determine the nature of service and DTAA rules and regulations. If TDS is applicable the TDS to be made at the rate in DTAA or 20%, whichever is higher. Thanks.
Hi Sir,
I am on H4 visa living in US for the past 7yrs. My mom living in India, have a demat account in India and holding some shares of Indian companies for more than one year. She would like to gift that shares to me and I would like to keep the shares( don’t want to sell it) for future needs. Is there any limit for the amount of shares my mom can gift?I don’t have any NRO/NRE account in India. Please let me know the process of such transfer and the taxation proceedure in both countries.
Thank you very much for your help.
As an NRI, you can only hold shares of a companies under PIS – Portfolio Investment Scheme of RBI. You would need to open the account NRO PIS account with a bank in India as well as NRO Demat and trading account. Your mother can give gift of upto $250,000 per year to you under LRS – Liberalized Remittance Scheme of RBI. Currently, many brokers are not opening accounts for US residents. I would suggest you contact your broker where you want to open the account and understand the procedures. As a US resident, while foreign gift is tax free, you would need to report to IRS. Thanks.
I am currently in US and hold a GC. I have surrendered my Life Insurance policy and the proceeds have been credited into my NRO Account. I have also received the settlement of provident fund from my company and the same has been credited to my NRO Account. Can I repatriate these funds from the NRO Account into the US or can a transfer funds from my NRO Account to NRE Account. Thanks
Yes, I would think so. Please contact your CA and bank for the certificate and other documents/procedures. Thanks.
Thank you for your reply. Would the proceeds from the policy and the PF be taxable in India? Your response would be greatly appreciated. Thanks
Taxable only if conditions for exemption not complied with; e.g. insurance proceeds received before maturity/death or PF redeemed before 5 years of service. Also, only a part proceeds (gain/benefit due to other’s contribution) would be taxable. Please contact your CA. Thanks.
Need your expert advice regarding my investment in immovable property in Indai and how to remit sale proceeds in my overseas account
1 funds are usually remitted from my oversea a/c to NRE a/c and then payments are made to builder
2 For another property part payment was made from NRO account (transfer from NRE) and balance from bank loan. Now repaying EMI to the bank through NRO (transfer from NRE)
3 plan to sell all my properties within two years and till then will be paying bank loan EMI from NRO (transfer from NRE)
4 Advice if payment made from NRO (funds usually transferred from NRO) will be eligible for remitting overseas , I mean sale proceeds can be remitted to overseas
Grateful for your tax expert advice for my future planning and I would like to have your services when I am finally moving my funds overseas
Your professional fees will be paid, off corse.
Thanks and regards
Appreciate if you can guide me through your response to my email
S P Gupta
Only direct payment made out of NRE account can be credited back to NRE account on sale. Also, as NRO funds are allowed to be remitted upto $1 million, it is not a major restriction unless the amount is very high. You are allowed to remit funds out of NRO, provided you have paid tax, if any on the income on sale of properties. If you seek our professional advise, please contact us via email. Thanks.
Hello Mr. Patel
I sold my property in India and now after paying home loan, I’d like to transfer remaining amount to my USA bank account from my NRO account. I checked with my bank and they are asking for 15CA/15CB. Do I need to file 15CA/15CB as I am transfering money to myself?
Thanks
Yes. As you want to transfer the sale proceeds of capital asset (subject to capital gains tax), it is a taxable transfer and CA certificate would be required. Thanks.
I am still waiting for your reply for
“I am US resident having NRO account in India. My three children are US Citizes.I want to transfer $30000 to my children ($10000 each) as gift. can i tranfer and if yes what documents I need to give to my Bank. How much maximum money I can give as gift to my children in one financial year April to March.
Further I enquired from my bank where I am having NRO account in India they say form 15 CA and 15 CB are to be filled. Then I went to my CA for getting certificate on 15 CB.But my CA says I can not remit more then $5000 as gift in one financial year hance he refused to give cirtificate and without that my bank is not ready to remit. I am totally cofused, Can you please advise me what is correct.
Your early reply will help me to save my time.
Thanks
Your original comment was made just 18 hours earlier and our office is usually closed for 15 hours due to non-working (night) time. Also, usually, I reply comments once every 2-3 days. So I would suggest you to have some patience. If you want your query to be resolved quickly, please call.
I suggest you to contact your CA/bank that you want to transfer funds from your NRO to NRE. The limit is $1million. Once funds in NRE, you can transfer to your US account and transfer to your children’s account. Thanks.
Dear Mr. Naresh,
First of all thank you very much for your informative website and your efforts to help people with their queries online. I hope you can also guide me.
I am an NRI, and would like to transfer 2,11,403 Rupees from my NRO to NRE account at Vijaya bank within same branch. My bank is giving me a really hard time requesting continuously Form 15CA and CB. I have already provided A2 form and additional self declaration letter, which is not sufficient according to Vijaya bank.
Rs 2,00,000 from the above mentioned amount has been transferred a few months back from my NRE a/c to family for help and after few months was transferred back into my NRO a/c. The rest of the amount I had withdrawn from my NRE account and have deposited it in my NRO account. So origin of all money is from my NRE account.
I have read all your answers and from that perspective I do not think I need the forms, but I am now very unsure about how to convince my bank still. I am really disappointed and surprised: is my bank right or am I right: I am seeking your advice/support to help me out of this situation.
In case you think I have to fill the form, is it an option to avoid completion of form 15CA by dividing the transferring amount in smaller portions of max. Rs 50,000? Any suggestion to help me convince my bank, I would really appreciate.
Thank you very much in advance,
Kind regards,
Bharat
As mentioned in multiple posts, either you convince your bank or do as per the bank requirements. Anyway, the 2015 budget proposed 15CB/15CA for ALL payments to NRIs; which will soon be a law applicable from June 1, 2015. If your bank still requires 15CB/15CA, I suggest you contact your CA and provide 15CB/15CA to bank for the transfer. Thanks.
i also read that now on CA/CB forms may not be required for NRO int to be transferred to NRE acct.
can shed more info on this please
NRO interest after TDS is considered current income and can be transferred from NRO to NRE after certain procedures. There is no recent change in this requirement that I know. Thanks.
Dear Mr. Jigar,
Your blog on NRI is really good and informative.
I am a non-resident Indian, and need your advice/clarification on the below 2 points.
1). I hold a NRE and NRO account. One of my fr. needed some funds and I had transferred INR 2 lacs to a friend from my NRE account to his resident account in India. He had returned the funds after few months in to my NRO account(funds transferred by him through his wife account).
I want to know was it ok?
2). I currently have funds available in my NRO account and need to transfer INR 5 lac to my friends NRO account. Can i do that ?
Please advice what formalities do i need to file for the income tax, in case it is required for the above two scenarios.
Regards
Nikhil V
1. In India, there is no married filing jointly concept and tax laws apply separately. Also nature of each transaction need to be ascertained. When you transfer funds to your friend, you gave a loan to him. If gift, it would be taxable for him as you are not a “relative” as per income tax laws. If it was a loan, it is still outstanding as you have not received the amount from him.
2. The same logic as #1 will apply. Determine nature of transfer and accordingly, comply with FEMA laws and have proper documentation. Thanks.
Dear Mr. Naresh,
First of all thank you very much for your informative website and your efforts to help people with their queries online. I hope you can also guide me. I have also posted my request in the blog of your website so that others can benefit from your answer.
I am an NRI, and would like to transfer 2,11,403 Rupees from my NRO to NRE account at Vijaya bank within same branch. My bank is giving me a really hard time requesting continuously Form 15CA and CB. I have already provided A2 form and additional self declaration letter, which is not sufficient according to Vijaya bank.
Rs 2,00,000 from the above mentioned amount has been transferred a few months back from my NRE a/c to family for help and after few months was transferred back into my NRO a/c. The rest of the amount I had withdrawn from my NRE account and have deposited it in my NRO account. So origin of all money is from my NRE account.
I have read all your answers and from that perspective I do not think I need the forms, but I am now very unsure about how to convince my bank still. I am really disappointed and surprised: is my bank right or am I right: I am seeking your advice/support to help me out of this situation.
In case you think I have to fill the form, is it an option to avoid completion of form 15CA by dividing the transferring amount in smaller portions of max. Rs 50,000? Any suggestion to help me convince my bank, I would really appreciate.
Thank you very much in advance,
Kind regards,
Bharat
For 200,000, you would need to comply with the FEMA requirement of loan to close relative to be able to credit the funds directly to NRE account. I don’t think they are complied so it can’t be credited directly. As mentioned in my multiple replies, if you can not convince the bank to transfer without 15CB/15CA, you would need to provide the same. I would suggest to property follow procedures – 15CB/15CA and transfer the funds. Please consult your CA. Thanks.
Hello Mr.Jigar,
I will appreciate your help to solve the following two queries from my side :
I have created some NRE FD’s from my earnings while abroad between 2010-2014. I have a designated SBI NRE Account. Since 2014 Sep, I have permanantly shifted to India. During 2010-2011 I had some FD’s created but those I had created in NRO account.
Hence my queries are :
1. Since I am now back in India and will be filing my taxes, do I need to make any changes in the NRE FD’s ? And if not, post renewal also they will continue to be exempted from taxes ?
2. Is it still possible to convert my NRO FD’s to NRE FD’s using Form 15CB/CA ?
Thanks a Lot
Parikshit.
1. As you have permanently shifted to India, you are not allowed to maintain NRO or NRE accounts but can only maintain resident accounts. For funds in NRE account, you would have an option either to transfer funds to the Resident Foreign Currency (RFC) account or to the resident account. Interest on resident account is taxable, whereas RFC account is exempt from tax in India.
2. As you are not allowed to keep NRO/NRE accounts, conversion or transfer of funds from NRO to NRE does not apply. Thanks.
Hello Mr.Jigar,
Really appreciate your quick response. In this case, is there a procedure to convert the existing NRE account into a RFC account or rather keep the NRE Account open for a certain duration ( example 2 years)? Being in IT field, I may eventually have to travel again ( when and where I dont know), so I was hoping to keep my NRE Account open subject to Indian law.
As per RBI rules, on your return to India that indicate your intention to stay in India for uncertain period, you are not allowed to keep NRE but must transfer funds either into resident or RFC account. Thanks.
dear Sir
Can an employer exempt overseas income of the employee based on tax residency certificate in India in case of Tie breaker.
for example an employee who is a tax resident and in possession of TRC can ask employer not to withhold tax.
in this case employee is residence of both US and India .
TRC can be used only for foreign income. For Indian Income, it is taxable to residents as well as NRIs. Thanks.
NRI wants to transfer his funds existing in NRO A/c to NRE A/c.
While preparing form 15CA, what is to be filled in the column “relevant section of income tax under which remittance has to be made?”
What tax liability should be shown in these kind of cases!!!
Please help or if you could help me by putting up a format of the form along with the replies to it
Thanks
You would fill Form 15CA based on the form 15CB that has been filled by your CA. Your CA would know this and he would have made the determination based on the source of funds in NRO account. Thanks.
Hi Jigar,
I sold a property in Mumbai and paid “advance tax” on the capital gains. I am trying to repatriate the remaining funds to USA and hence trying to get the 15CB from a CA. The 15CB form has a section on TDS, but not on “advance tax”. So, I am not able to state that I have paid the taxes. Any idea how to handle the situation?
Form 15CB is to be filled by your CA. You give your information to your CA and he would know how to fill the form. In the 15CB, you may include the working of calculation of gain, tax and tax paid information and that as tax was paid as advance tax; TDS was not deducted. Thanks.
My friend who works outside India wants to transfer his INR deposit from ICICI NRO account to his ICICI NRE account for his son’s higher education for Rs 10.80 Lakhs. The fund received is from Provident Fund withdrawal (service period is more than 5Yrs). Bank is asking for 15CA & 15CB. But as per the new notification does it not fall under S0305 so why is the bank insisting on 15CA & 15CB. Moreover no taxability arises.
I would assume your friend is an NRI and he wants to transfer funds outside India for his son’s education. The LRS liimt is for resident. For an NRI, as his funds are in NRO account, he would need a CA certificate to ensure that the funds that he is transferring is after tax. If your friend would have been a resident, 15CB/15CA may not be required. Thanks.
Hello
As per information RFC account is made for returning NRI. Question is can NRE ( RS account )account holder who lose his NRE status and become resident indian, also eligible to open RFC account as it states only foreign currency account? if yes for how may years and whats is tax rules for it. And if not is there any other instrument for NRE account holder ( rupees) comparable to RFC.
thanks
There is not NRE status. The status is NRI. An NRI is allowed 2 accounts – NRO and NRE. Only funds in NRE can be transferred to RFC. So if you have a resident or NRO account, funds can not be transferred to RFC account. I would suggest you to first transfer funds from NRO to NRE account and then transfer to RFC when you become a resident. Thanks.
Dear Sir,
I Want to know Whether Remmitence made for the import of Raw Material is liable to TDS or not.
some says if it is on FOB then not taxable but on c.i.f it will be taxable
Sir I want simple langauge can u please help.
Only if the company (exporter) has a business connection (PE) in India. Thanks.
I am US citizen and have NRE and NRO account. Three years back, I sold property in India and deposit funds in NRO account. These funds are invested in FDs and earning interest. I filed tax return for the year property sold and paid taxes in India.
Now I am looking to transfer funds from NRO to NRE account.
Do you provide service to complete all required forms and if yes, what is your fee?
Yes, we do provide the service. However, it would be easier, cheaper and quicker if you contact your own CA as he knows you, your case and have also filed tax return. Anyway our fees depends on the complexity of case and is based on the scope of work. Let us know if you want us to provide the service. Thanks.
I did Masters from France, 2012-2014. I used to get education loan from my university in my SBI account during this period. I have changed this account to NRO account. My studies are finished and now i want to repay the amount. Do i need to fill Form 15 CA 15 CB ?
Thanks
No 15CB/15CA for transfer to NRO. The requirement is only for transfer out of India or NRE. Also, loan repayment included in the specified list of transactions that do not require 15CB/15CA. Thanks.
Hello Sir,
I got the educational loan sanctioned and to transfer the money to my account in Germany, the bank has asked for Form 15CA and 15CB.
My question is, can the name of remitter and remittee be the same? As i am tranferring loan amount from my account in India to my blocked account in germany. Both are on my name.
Thanks for the support
I think you may not need 15CB/15CA. However to answer your question, Yes, remitter and remitter can be the same. Thanks.
Hi
If i work in Africa Sierra Leone on a contract of 12 months , can the recruiting company transfer salary in my India NRE account without deducting any tax.
Regards
Ashwani
If you live in Africa, you are an NRI. For an NRI, income is not taxable in India. As long as you pay tax in Sierra Leone, you can transfer funds into NRE bank account. Thanks.
Hi,
I am a PIO residing in UK with NRO and NRE accounts in India. In 2010 I had purchased a property in India using my UK earnings for 30L.
1. If I sell it now for 90L, will I be able to repatriate the entire sale proceed after CGT payment?
2. RBI guideline seems to suggest that I can only repatriate the capital sum.
3. If above is true, does this mean that the remaining money is stuck in India for good?
Thanks
Ashok
1. Yes
2. No. all 90L after tax. Your limit is $1 million per person per year on sale of property out of NRO account.
3. Not apply. Thanks.
Sir,
I have funds in my NRO account which are either non-taxable (Dividends) or funds on which tax has already being paid (FDs).
1. Can I transfer this funds from my NRO account to my NRE account directly through Online banking?
2. If YES, what is the upper limit of transfer per year?
3. Will I still need to do any paperwork for the Online transfer?
Thanks & Regards,
Dr Amit Shah
1. No. You would need a CA certificate in Form 15CB and have to file a form 15CA to the income tax department.
2. Not Applicable
3. Required forms needs to be filled, signed and submitted. Thanks.
Jigar,
1) Is transfer from NRO account to NRE account taxable?
2) Also let me know the article under DTAA on which payment is to be made?
Transfer is not taxable. The taxability applies to the funds in NRO, whether tax, if any, is paid. DTAA applies only when the lower rate of TDS to be applied. If not taxable, there is no need to claim DTAA relief. Thanks.
GOOD DAY
WE ARE IMPORTER OF WOOL FROM INDIA. WE NEED TO MAKE PAYMENTS AGAINST OUR IMPORTS.
BUT FROM LAST ONE MONTH WE ALWAYS BEEN ASKED FOR 15 CA/CB FORM BY OUR BANK CAN YOU SUGGEST ME OR GIVE ME AN LINK AS I STUDIED ABOVE THAT 15 CA/C IS NOT REQUIRED IN IMPORTING RAW MATERIAL
CAN YOU KINDLY GIVE ME AN SPECIFIC DETAILS TO PROVIDE TO BANKER SO THAT THEY SHOULD NOT COME WITH SAME QUIREY AS THEY ARE NOT MAKING ANY PAYMENT WITHOUT 15CA/CB
ONCE WE SUBMIT THEY DO THE PAYMENTS
KINDLY HELP TO GET BACK WITH NOTIFICATION AS 15 CA/CB IS NOT REQUIRED WHILE IN CASE OF IMPORTING RAW MATERIAL IN INDIA
As per revised income tax laws from June 1, 2015, 15CB/15CA would be required for any transfer, whether taxable or not. Please read my latest blog on the same. Thanks.
Dear sir
My PVT Ltd company is involved in ship’s spares export from India. We have to get the equipment installed by third party ,a foreign firm. For payment of installation and commissioning charges do we need 15 CA or 15CB ? Does it attracts any TDS ? If yes then how much for payment to thailand based firm against invoice.
I would suggest to contact your CA who would need to review your agreement, India-Thailand DTAA and then determind whether TDS is applicable and at what rate. Thanks.
Dear Jigar, are there any FEMA violations or other violations if a resident Indian (purchasing property from nri) only withheld 1% TDS out of ignorance and then subsequently the NRI filed the return also not knowing the rules. (There was capital loss in the transaction and so no capital gains tax payable otherwise). Is there any remedial action that can be taken before filing the tax return to comply by the buyer or seller.
Thx.
There is no FEMA violation but Income Tax Act violation as provisions relating to taxation is governed by the Income Tax Act. However, as there was a capital loss, there is no loss of income (tax) to the government so it may be okay. However, technically, TDS at 20% would be required to be deducted if you had not obtained lower/no deduction certificate from the Income Tax officer. Thanks.
Thanks, Jigar (for your big and kind heart in doing this service ).
The transaction happened in March 2015, without any TDS deduction (not even 1% as it turns out). So the NRI seller gave back 20.6% to the buyer after realizing the mistake 5 months later, and the buyer is remitting 20.6% TDS 5 months late. Q1: Should the buyer also Pay 5 months penalty at 1% per month at 1% in advance of the NRI filing the return before Aug 30 and ask for refund? Q2: Are there any other TDS obligations on the part of buyer or seller NRI? Thanks so much again.
As TDS was paid late, interest/penalty may apply. It is an expense due to an error by buyer and won’t be claimed as a refund by the seller. Once TDS is deducted/paid, return filed, certificate issued, there is no other TDS obligation. Thanks.
Thank you so much Jigar for all your clarifications.
Dear Jigar, does the buyer have to deduct 20% or 30% TDS when buying an apartment from NRI assuming that the property is sold by the NRI within 3 years after his purchase. Thx.
Within 3 years is short term capital gain so TDS rate would be 30.9%. Thanks.
Dear Jigar, I sent a small clarification question on August 22. Hope you will look at it soon. Thanks a lot.
Replied. Thanks.
Dear Naresh,
I want to know, do I need ’15CA/CB’? to transfer money from NRO to NRE transfer? if money is related to property I sold, which was invested on National Highway Scheme to get rebate on capital gain tax. They used to cut tax on any interest earned. Money is deposited back to NRO account after 3 years.
Kind Regards,
Hemant.
Yes, all transfers, except in the specified list would require 15CB/15CA. The requirement has been revised. Thanks.
Hi Jigar,
Very informative blog.
I am an NRI for quite a few years now and had a ICICI resident savings account which had auto fds worth 3 lakhs running in it. Recently last week while visiting the bank I was told to convert it to NRO or close it and transfer the funds to my NRO account which I did after breaking the fds ,closing the account. Now I have transfered the funds to my HDFC NRO ac. Can I transfer the funds from NRO to NRE? Without form 15 ca/cb? What’s the status of these funds? Are these taxable if I have broken the fds and transfered them mid year? Some TDS used to be deducted on these funds every year. Please guide me how to go about it?
I have no other taxable income in India.
Thanks and best wishes
Peeyush
Just to add I had filed returns before becoming NRI and have not filed any returns after that since i didnt have any income in indua. so for the CA certificate what will be tax status of this funds?
As the funds are in resident/NRO account, they are considered as a taxable accounts/funds. Thanks.
Yes, you can transfer the funds from NRO to NRE. However, 15CB/15CA would be required. Please consult your CA for the same. Thanks.
Thanks for this informative article. I have a question
I relocated from India to USA in Dec-2014. I had paid income taxes for all my income earned in India. All these funds now reside in my NRO account (resident account converted to NRO).
1, Can I repatriate these funds to a foreign account (do I need 15CA/15CB for this)?
2. Can I transfer these funds to my NRE account (what would I need for this transaction)?
Thanks
Sebastian
1. Yes, you can remit the funds to a foreign account. Yes, you would need 15CB/15CA for the same.
2. Yes, you can also transfer to NRE account and for that too, you would need 15CB/15CA. Thanks.
Dear Mr Jigar
Can money transferred from NRO account to NRE after complying with the procedure be kept in the NRE FD to avail exemption from I Tax as long as NRI status is maintained or it is only for repatriation?
Regards
sanjeev vadeyar
You can keep in NRE FD. There is no requirement of repatriation. Thanks.
This blog provides very good informations.
well done Mr. Jigar.
My query is :-
I am residing in India since my birth & my current age in 32 & I want to permanently settle in USA with Green Card on arrival scheme.
1. How can i transfer fund from India to USA ? Initial investment is around 6Crore INR. Can I maintain balance by taking unsecured loan & transfer those amount?
2.On what basis will I open bank account in USA?
3. Any other compliance need to be taken care of?
4. Whether 15CA/15CB is necessary?
Thanks in advance
I am not sure of greencard on arrival scheme. I think there is EB5 i.e. Investment scheme which requires $1 million or $500,000 depending on the where you want to invest. As an Indian resident, you can only allowed to transfer upto $250,000 per person. Also, any loan amount received in India can not be remitted abroad. I think 15CB/15CA would be required in your case. I suggest you check with the agent/advisor for your immigration, who will guide you better. Thanks.
Hi Sir,
My brither-in-law is NRI – PIO card holder. He has NRI FDs. zdoes he have to delcalre this income to US tax authorities? He has not done so far.
Also, he has 2 flats in India. Should he declare this investment to US tax authorities?
Yes, Declare FDs and also pay tax on interest income. Real estate property not required to be declared. However, if any rental income, declare and pay tax in USA as well. He would get a credit for any taxes paid in India. Thanks.
Sir,
before coming to canada two years back, i had an icicidirect trading account, which till now i am using, i have some shares in the demat form in it. Recently i came to know that i must open a nro saving as well as demat account and transfer my shares in to it. What ShoulD i do for the same. , Will i have to go to india to doit.
Can i just lcose my current account by either transfering my holding to my relative or sell it and close the account.
If you want to invest in your name, you need to invest through NRO account under Portfolio Investment Scheme (PIS) of RBI. If you don’t want the shares/invest in your name, you may gift the same to your close relatives. Even if you sell the shares, the proceeds need to go to the NRO account. Thanks.
Jigarji,
We’ve taken buyer’s credit from SBI Sanghai for making payment of Import Purchase & we are making remittance from our SBI Bank Jabalpur on due date to SBI Sanghai along with buyer’s credit interest then is it required to submit Form A 2 to our SBI Bank Jabalpur because it is required to file on that condition when we makes foreign remittance against other than import payments.
If it is required to submit Form A 2 then what amount has to be filled in the field of “amount of foreign remittance”?
Is would be the whole amount of Import purchase including buyers credit interest or only for Buyer’s credit interest.
Please clear the same & oblige.
Thanks & regds
Kapil Kumar Gupta
Your payment would have two nature – import payment and interest and you would need to treat them as such and follow respective requirements. I think only interest porting is considered as buyers credit interest and not the whole amount. Thanks.
Hi,
I am NRI. I have one savings account jointly operated with my mother, one NRO account and one NRE account in same bank. Last year I have remitted ‘X’ amount to the jointly operated savings account. That ‘X’ amount is now in FD. FD is going to mature soon and interest will be taxable. After closure of FD, can I transfer that ‘X’ amount from the jointly operated savings account to NRO account and then from NRO account to NRE account? What all things need to be done?
I am surprised that you bank allowed to keep both resident and NRI status as RBI has implemented Unique Customer ID number system so only one ID for all accounts and same residential status. I would suggest you to inform your bank of your NRI status where you have resident account and change your account to NRO and FD to NRO FD. Once FD matures, the money will go to your NRO account. Thanks.
hii,
i read your article dated September 6,2013 regarding procedure of transfer of funds from NRO to NRE….
kindly assist me by providing the said circular on mail
thanking you,
Anurag Totuka
The circular may not be valid now because of change in Finance Act. However, you may search the notification or circular on the Income Tax website at http://www.incometaxindia.gov.in. Thanks.
PLEASE INFORM WHEN ANY CLARIFICATION COMES THAT THEIR IS NO NEED TO FILE 15CA-CB FOR IMPORT OF GOODS WHICH ARE NOT CHARGABLE TO TAX. PL ALSO INTIMATE THAT WE SHOULD FILE 15CA-CB OR NOT WHEN BANK HAS GIVEN OPTION TO FILE DECLARATION ONLY FOR REMMITTANCE OF ADVANCE PAYMENTS FOR IMPORING GOODS FOR SALE IN INDIA. AWAITING REPLY – See more at: http://taxguru.in/income-tax/analysis-form-15ca-15cb-requirement-payments-import-goods.html#sthash.nku71dk2.dpuf
CBDT has issued a notification on Dec 16, 2015, which will not require 15CB/15CA for import payment. However, it is effective only from April 1, 2016. That being said, any payment before that even for import of goods would require 15CB/15CA. I would do it to be on a safer side. Thanks.
I gifted my sister about 30k in her bank account . She’s a college student and not earning anything,so wont come any taxable income bracket. I paid ads to a foreign company from her bank account,does she have to fill any 15 ca/cb form? She won’t pay any income so I am just gonna take this as personal expense.Would be of great help if you answer bro 🙂
1. I would assume you are not a US resident and gift amount is not in USD. The exemption limit for gift tax is $14000 per year.
2. I am not sure about your transaction. However, any payment to an NRI require 15CB/15CA. you also need to determine the nature of transferring money from your sister’s account. Thanks.
Dear Mr Naresh Patel
Thank you for your expert advice on your blob. Will be grateful for your expertise in the following matter.
I sent x GBP’s from PNB in UK to PNB in Punjab, India 3 months ago. I am a British citizen. I would like to bring back x GBP’s. What formalities do I have to complete?
R Aggarwal
If funds are in NRE, you can instruct the bank to transfer to your UK account. If the funds are in NRO, you would need a CA certificate in form 15CB and file 15CA and submit the information to the bank for the transfer. Please contact your bank and your CA. Thanks.
Hi Jigar,
I am a NRI, have a customer to purchase my flat in Mira road, Mumbai, which was purchase in January’2010 with a agreement value INR 41 lakh. We have finalised to sale at approx. INR 1.05 CR and hence please advise for the following
1) Can I take payment cheque of NRO a/c and transfer to NRE a/c and then exchange to AED? what would be the cost of transfer and procedure involve.
2)Since I am an NRI, do I need to pay the tax for sold property, if yes than on what value I have to pay tax.
3)If tax applicable, then what would be the possible options for tax exemption.
Thanks Zuber.
1. Yes, you can take payment in NRO. The buyer needs to deduct TDS. Once funds in NRO, you would need 15CB/15CA to transfer funds to NRE account. Once in NRE, you may convert to AED and transfer. There is no cost for credit to NRO account. The cost for CA certificate and filing form 15CA for transfer from NRO to NRE would depend on the CA. The conversion from INR to AED would also depend on the bank. You may also negotiate with the bank for better conversion rate.
2. Yes, tax would be on the long term capital gain after indexation @ 20.6%
3. You may invest in capital tax saving bonds for 3 years earning 6% taxable income or buy another residential house in India. Please contact us if you have any question about TDS, NRO to NRE transfer, saving capital gains tax, investment or filing taxes. Thanks.
Respected sir,
I have just started travel agency. Now i want to make remittance to SIngapore & Malesiya for booking of hotels and site seeing on behalf of my clients. The bank is asking for Form 15CA/CB. Pl let me know whether the form is to be issued and any tax to be deducted. The agents are not having any indian office.
Regards
Nikita
I think payment for travel is included in the specified list. However, if you can’t convince the bank to remit without 15CB/15CA, you would have to provide the same. Contact your CA. Thanks.
Respected Sir,Respected madam,
1.Like your good elaborations, on this most useful topic, for all the NRIs., globally.
2.Like to know the Up-dated Steps and Procedures of converting NRO Savings and NRO FD Accounts into NRE Savings and NRE FD Accounts inside India,respectively.
Basant Kumar Dugar,
FCA(India),ACMA(India),ACS(India),
FCA(Singapore),FCCA(UK),IMA(USA),FCPA(Australia)
Bangkok,
27.1.2016.
1. Thank you.
2. There is no converting of accounts from NRO to NRE. You would need to TRANSFER funds by writing a cheque manually from NRO to NRE account. For that you woudl need to break an FD or wait until its maturity. Also, you would need to provide a CA certificate in Form 15CB and file Form 15CA to the Income tax department and submit both to the bank as well. Thanks.
Hi Jiger,
I sold my property around 3 years a go & invested in NHAI bond to get rebate on capital gain tax. Bond amount was 47 lakhs. On maturity money will be deposited in NRO account.
Can I transfer money from NRO account to NRE account? if yes process and cost?
Kind Regards,
Hemant.
Yes, you can provided you obtain CA certificate in form 15CB and file form 15CA. If you want us to provide the service, please contact us. Thanks.
Sir,
I want to ask that if one of my friend who lives in USA and he is neither an NRI nor an Indian citizen , he is American by birth .We met in India when he was here on some India Tour visits and then we are friends on social networking sites.
The question is if he sends me money from there , do i need to answer the Income Tax department or Bank or whatever else?
How much money can I accept here so as to avoid Income Tax and all, is there any limit on gift payment money from a foreigner ? If yes ,please tell me the maximum transfer limit ?
would like to mention that this is one time transaction only .Not like that I am getting money every month, just once.
Hoping for your reply .
Thaanks
You may not accept gift from non-relative. For any gift over Rs. 50,000, all amount would be included as your income. Thanks.
we are a market research report reseller and usually we do the remittance documents in the name of Research journal which is been exempted and non deducted as per datc rule as per new 15Ca and CB rule what can be done .
It if is a non-taxable transfer, no 15CB would be required from April 1, 2016. If it is not included in the specified list, you would be required to submit 15CA part D. Thanks.
hie
my company import spare parts of machines form a foreign company(of italy) and there is no PE of foreign company in india, whether form 15cb is required for it and payment is also above 5 lac and if form 15ca is required which part of it is to be fill by me.
Import payment is not included in the specified list that do not require 15CB/15CA. Thansk.
i employee of bank of baroda,mycustomer wants to transfer money from her
NRO account( BANK OF BARODA) to NRE account maintained at (SBI St Mark road Bangalore.)
whether SHE IS required to submit 15CB AND 15CA for effecting transfer through RTGS
so far our bank has not informed waiver of 15 CB & 15 CA
HIMANSHU SINHA
It would depend on the source of funds. I think it would more depend on the BOB’s internal procedures and requirements. Thanks.
Hello sir,
I have acquired the reliance industries equity shares as an resident India in 2009.
I have opened a NRI a/c with Kotak securities Ltd and sold the same through my NRE PIS trading a/c.
Kotak PIS team is demanding for CA form 15CA & 15CB to give the sales proceeds. I am in Oman and finding it difficult to complete these formalities.
Pls help is it mandatory for form 15CA & 15CB to get the sales proceeds?
If not pls suggest how to get the funds payout from the broker without the above form?
Thanks
Gayatri Panda
I am surprised that the Kotak allowed you to use NRE PIS as local/resident demat can only be converted to NRO PIS. You can convince that the shares were long term and no tax is payable and no need for the forms.
If you need our help in resolving the issue, please contact us via email. Thanks.
hi, i would like to know why has 15ca 15cb been introduced?
i am doin a study on compliances and i would like u to let me know
also are there any recommendations that you can provide me with the improvement in the submission system
thank you
Please check my answer on quora about the subject at https://www.quora.com/What-is-the-reason-behind-introduction-of-15CA-15CB. You can also check my blogs on the subject at http://nareshco.com/blog/?s=15cb
Currently (after April 1, 2016), both forms are being submitted electronically to the IT department. As 15CB is signed digitally, it can be sent to the bank via email. Additionally, if the client also has a DSC and sign form 15CA digitally, the same can be submitted via email to the bank. Thanks.
Dear Jigar,
I am Non resident and I have sold rural agricultural land in India for Rs.2,30,00,000/- which was inherited property held by me. How would I can repatriate the said proceeds to abroad?? what all compliances and tax implications will arise?
The buyer would need to deduct the TDS. After paying tax/TDS deducted, you would need to obtain a CA certificate 15CB and then file a form 15CA and give all documents to bank for remitting funds to abroad. You also need to file the tax return. The sale of property may also be taxable in your resident country. For any tax you pay in India, you may get a credit in your country of residence. Compliance with TDS rules, filing of forms, filing of tax returns would be key. Contact us if you need our service. Thanks.
Dear Mr. Jigar
If an NRI receives money in his nro account and he wants to transfer it to nre account then is form 15ca cb required?? The monet is received from brother.
15CB/15CA is required at the time of remittance. The nature of receipt from brother also needs to be checked, whether gift, loan or income. If loan, it can not be remitted abroad. If gift, it needs to be less than $250k and if income, you need to report the same in your tax return. The FEMA and income tax laws are different for each nature of transaction and needs to be complied with. Thanks.
Dear Sir,
we make some payments a Canada based company that provides web servers (annually leased)
are we required to deduct TDS and deposit it here with Indian Tax Departments?
If the service provided is included/considered as “Fees for Technical Services”, TDS may be applicable. Please contact your CA. Thanks.
My Husband shifted to Gulf country for job in Dec 2006
• My self is having NRI status from 2008 as I got shifted to Gulf as depended (housewife)in March 2007.
• Then onward my Husband and Myself (Joint ) has open NRO and NRE account in 2007 (Joint account) in indian Bank -SBI and started transferring fund to india in NRE account.
• As in year 2007 , the Indian bank is having less than 4% interest rate in NRE account , However NRO account is having average 9% interest rate for the FD’s.
• So, Many NRI’s use to transfer fund from NRE to NRO and book FD’s and pay IT as per regulation.
• We have also transfer fund from NRE to NRO and booked multiple FD’s on joint name (self /husband as joint holder Or my husband name /mine as joint holder)on to earn high interest rate and pay IT as per regulation.
• However in year 2012 the interest rate on NRE was also increased by RBI (around 9 %)and As per RBI guideline/scheme of May 2012 to allow transferring of fund from NRO amount back to NRE amount and book FD in NRE account below prescribe limit.
• So in year 2013, we have prematurely break the all NRO FD and transfer fund back to NRE account (about 65 lakh) by fulfilling the 15 CA and 15CB certification from CA and then after rebook the FD in NRE with Joint account holder( my husband name /mine as joint holder)
• Also, In year 2013, we have sold the our flat (joint holder) in Surat (@8.5 lakh) which was purchased in 2003 and Now rebook new flat in Mumbai (joint name).
• Total Flat sold amount in half was shown while filling the return in both (myself and my husband ITR).
One Mistake is our CA has shown my status as Resident Indian and my husband status as NRI while filling the return , However my bank status is NRI from 2008.
• Now we have got letter from IT office to report as they have query related to ITR 2014 (13-14) on subject So Kindly guide us how to come out from the above issue and explain how and what to represent.
You would need to read the letter received by IT office and understand the query. I don’t think residential status would generate a query. The query would be for either NRO to NRE transfer or reporting of capital gain. Please contact your CA and understand. If you have truthfully reported all your income and paid the tax, you do not need to worry. Thanks.
My son has availed overseas educatinal loan from SBI, after completion of course he is working since three yrs in GERMANY, further as per norms they have deducted income tax & he has repaid the EMI till today. My point is in which country he has to file his assesment paper & whether he can claim interest part of SBI educational loan from the income tax department of Germany.What is the procedure to claim?
Generally, the interest is allowed if it is paid for the funds on which you have made any income. I don’t think the funds of education loan is used to generate income so it may not be allowed. However, I am not sure of the German tax laws and your son is requested to contact a German tax lawyer or accountant. Thanks.
I need to deposit nearly 5 lakh rupees to my gic account of nova scotia bank ,but i do not have a pan card . I had applied for pan card but it will take 10 to 15 days . Is it possible to send money from ICICI bank for the same purpose without pan card .
One another doubt is if i get my pan card no. As i had applied , before its delievery . Is it possible to send the same sum to scotia bank using the pan card no. Only ?????
Plz reply
I am not sure what is a gic account. Also, 5L Cash without PAN would be difficult to explain. Please make sure that you would be required to provide the source of funds. You may check the status of PAN process. Usually PAN is allotted within 1-2 weeks and then would take 1-3 weeks for printing and delivery. If you have the PAN, you may quote the same and deposit the money. You may not need to provide a photocopy. Thanks.
Greetings Jigar,
I am a Candian Citizen and OCI and was working in India for 3 years and I converted my NRE to regular account and closed NRE account. In India, I have Regular Accounts & FDs, PPF, Demat and Bonds. (Some I had before I took foreign Citizenship). My Indian income was tax paid and I filed regular India returns.
I moved back to Canada and I know by law I have to convert the accounts back after 6 months. Hence I want to know now
1) Can I convert the accounts to NRE from being in Canada or do I have to make a visit in India?
2) Which Accounts can be converted
a) Regular A/C and Fds
b) PPF
c) DEMAT
d) Bonds
e) Physical Shares
f) Resi/Commercial Properties
g) Post Office Accounts
h) Insurance Policies
i) HUF account
3)Which Accounts must be converted as per law
a) Regular A/C and Fds
b) PPF
c) DEMAT
d) Bonds
e) Physical Shares
f) Resi/Commercial Properties
g) Post Office Accounts
h) Insurance Policies
i) HUF Account
4) How to convert the funds back to NRE
5) I had also given NRE/NRO funds to my parents as gift as well as given gift to parents from Indian account when I lived with them. My Indian income was tax paid and I filed regular India returns.
a) Can my parents transfer the money that I gave it back to my account?
b) How much cash can my parents / in-laws (who are in biz) transfer to my NRO account as gift? Can they gift via cheque?
c) Can relatives give me gift in cash into my account? If so, who qualifies as relative and what are the restrictions of cash transfer? Can they gift via cheque?
Importantly is do I have to visit back to India for converting to NRE or can I do it after two years when I come there or can I do everything from being here ?
1-3. As RBI tracks investments by NRIs, you would update all your financial accounts/assets (bank, DP, physical shares, FDs, etc.) and IT (update PAN). Physical presence may not be required; however, it would depend on the institution and other requirements.
4. Please contact your bank and your CA for the same. I would think 15CB/15CA would be required to transfer funds from NRO to NRE.
5. If the money was given as a gift, you have no right. If money was given as loan, different rules may apply depending on whether loan was given from NRO or NRE account.
6. Only your close relatives – parents and siblings can give gift to NRIs. Other relatives (even your brother’s wife) are not allowed to give gift to an NRI. Thanks.
Hello Sir,
1. If i want to transfer 20L to my brothers NRI account. My brother helped me during construction of my house a few years ago.
2. Should i transfer to NRO account or NRE account?
3. What is the effect of the recent notification of the Income Tax. (if more than 10 Lakhs/year deposited in a bank account. The bank needs to report it to IT.
4. If more than 10Lakhs Forex is bought. The bank needs to report it to IT.
What is the Impact of the last 2 items on the transfer. My Brother does not have a PAN number. Will it cause any problem.
Also, Will the Forex Purchase of more than 10L/Year needs to be reported affect the transfer from NRO to NRE or Whats the impact on it on LRS?
Please comment and advice us all.
1-2. If your brother gave a loan on repatriable basis and related conditions fulfulled – paid from NRE account, for 1-3 years, without interest, etc., you can directly credit his NRE account. If not, the money will be credited to his NRO account.
3. 10L limit is for transaction in cash. You are not depositing cash but transferring funds by cheque so 10L limit is not applicable for you.
4. You can buy upto $250000 of forex from your bank account under LRS. Thanks.
Hi,
I am a New Zealand Citizen. I have an NRO account in India and I have an apartment which I rent. The rental money is deposited in my NRO account. I would like to remit the rental money from my NRO account to my bank in New Zealand. Would like to know which form I need to submit and what will be the tax on the remitted amount.
Thanks
You would need to contact your CA to obtain a CA certificate in form 15CB, file form 15CA and complete the forms or procedures as required by the bank to remit the funds to New Zealand. Please contact us if you need our service for the same. Thanks.
Is TDS Required to be deducted while transferring funds from NRO to NRE account in INDIA
Income in NRO is from Rent
Technically, any payment to an NRI is subject to TDS so you would receive rent only after TDS is deducted. In that case, there is no additional tax deducted for transferring money from NRO to NRE account. However, if TDS is not deducted, it is recommended to pay tax before transferring the money or to transfer the money after filing of tax return and payment of tax. Thanks.
Sir,
My friend an nri wants to re-transfer all his funds which was earlier transferred by him to India from abroad . The funds are non-taxable. The bank is insisting on 15CA and 15CB. Which are the clauses under which 15CA and 15CB to be issued by the CA.
1. If he transferred the funds from abroad to his NRO account, he may not need 15CB/15CA to transfer the principal amount from NRO to NRE.
2. If the funds were not credited to his NRO but transferred to his close relatives account as a “loan on repatriable basis” (all conditions fulfulled), he can still transfer to NRE account.
3. However if he transferred to his or someone else’s resident account, he would need a 15CB/15CA certificate. Also, if you can’t convince the bank in #1 and #2 case, you would need 15CB/15CA to transfer the funds into his NRE account. Thanks.
My son (age 23) is studying in the USA since Aug, 2015. He will become a NRI for tax purposes. He is going to be studying there for atleast another 3 years. He has substantial amount of investments in India in MFs/ FDs, etc. and pays tax and files returns.
He will convert his savings account to NRO account in April. Can he transfer money to the USA for investing there in stocks/bonds and under what heading. Does he require 15CA/CB to do the same.
Thanks
1. As your son has left India for study, as per RBI rule, he is an NRI after departure from India.
2. As an NRI, he is allowed to remit upto $1million (6.5 Cr) per year.
3. As the source of money in India would be taxable in nature (interest, capital, rent, salary, other), he would need a CA certificate in form 15CB and file form 15CA for remittance of funds.
4. As he will be a US resident, it is important to plan his investments for tax-efficient investment as while certain income (LTCG on equity, PPF interest, NRE interest) is exempt in India, he would have to pay tax in USA. Thanks.
Sir, Thank you for the valuable ideas with regards to NRI taxation. Its really helpful to read your blog. I’d appreciate if you could answer a few questions:
1) I understand that funds in an NRO account can be repatriated out of India provided tax has been paid on it. Suppose the funds in the NRO account were out of the proceeds from sale of shares held for over an year. Since no tax is applicable on shares with a holding of greater than 1 year. In this case, how does the repatriation work.
2) Will it be required to furnish 15CA/15CB to transfer such proceeds(from sale of shares with holding >1yr) from NRO to NRE.
3) Is there any upper limit for repatriation of money in NRE account?
Thank you.
1. While the tax on long term capital gain on sale of shares through stock exchange after payment of STT is exempt, your income is in the nature of capital gain, which is taxable. Only if certain conditions are satisfied, the gain is exempt. Only CA would be able to verify the same so I think 15CB/15CA would be required.
2. The limit is on transfer of funds from NRO to NRE. There is no limit or restrictions on transfer of funds from NRE outside India. Thanks.
Sir,
We are a travel agency authorized by Saudi Consulate for processing Saudi visas. We need to deposit money towards visa fees for visas (in USD) applied on behalf of our customers into a E-wallet account and the IBAN number provided by the consulate. Kindly advise if we are required to provide Form 15CA and 15 CB to the bank for the same.
Regards
Ravichandra
I think the travel under BTQ or business are covered under specified list not requiring 15CB/15CA. If your transfer is not in specified list, 15CB and/or 15CA may be required. Thanks.
Dear Sir,
We are a Private Limited Company. Our Company has 98% shareholding by NRI.As the company is having no business in terms of Income. In order to maintain Cash Flow position on monthly basis Company borrow money from NRI shareholder NRO account who has as NRO account in India as Share Application Money.As the Company is going to liquidate its Office Property which is in Company name to generate Cash Flow for Working Capital purpose & Company want to refund back share application money to NRI Shareholder’s NRO account. After getting funds from Company account to NRI share holder NRO account. NRI shareholder want to transfer funds from his NRO account to NRE account locally. For transferring this transaction what are the procedures required for Bank. Please advise.
regards.
Pramod Nayak
For any transfer form NRO to NRE or out of India, a CA certificate in form 15CB/15CA would be required. Please contact your CA and bank to understand the procedures and requirements. Thanks.
Hello,
I have determined that I need form CA and form CB. I have moved to USA. Money I wanted to transfer is from my salary and I have paid taxes.
I want to transfer money over multiple transactions since the rates are fluctuating a lot. Do I need multiple Form CA/CBs? Example : Let us say I want to transfer 50 Lakhs and I want to transfer to my USA account. Is it possible to create a single set of form CA/CB in Nov 2018 and use the same forms for 10 transactions over a period of next 10 months.
Thanks for all the info and guidance
Hare Srinivasa
I would recommend you to open an NRE account, which is also denominated in Rupee. Thereafter transfer all funds from NRO to NRE with just one 15CB/15CA. Once money is in NRE account, there is no restrictions and you may transfer the funds whenever you want. 15CB/15CA won’t be required for remitting funds out of NRE account. Thanks.
We are Pvt co in india have business with japan co – one Japan company outsourced IT services to us of another Japan co. we are providing IT services to other co and 1st Japan co also providing services to other co , 1st japan co collection from us 20% as commission on services provided to outsourced japan co . In this case is TDS applicable and 15CA/CB required pls quide
If it is a sales commission, TDS may not apply but 20% commission is very high and may not be allowed. Usually commission upto 10% is okay. However, if you are paying them as a part of outsourced IT services – you are doing a combined project with 1st Japa company and invoicing 2nd Japan company and paying 1st Japan company as part of deal, it may be considered as a payment for technical services and could complicate the matter. I would recommend to contact your CA for detailed understanding of the matter. Thanks.
hi Jigar you are doing great job
i am Canadian citizen from 2014 i had a stock market investment in India before 2010 around 50 lakhs (today’s value) now i want to sell all portfolio and take this money back to Canada. I don’t have any income in India last 11 years. I have savings account and NRE account in state bank. i checked as of 1 January 2018 none of them liable for 10% long term tax.
So what i have to do for return this all money to Canada ?
do i have to pay any tax in India and Canada ?
do i have to file tax return in India 2018 ?
Please comment and advice me
Thanks
I would recommend first to open an NRO account or convert your resident savings account to an NRO account. Thereafter, once shares are sold, deposit the money in the NRO account and thereafter, ask your CA to issue you a CA certificate in form 15CB and file form 15CA to remit funds to Canada. While there is no tax in India, as you are a Canadian resident, you may have to pay tax in Canada. Please consult your CA/CPA/tax attorney in Canada. Thanks.
Dear Jigar,
I have an LIC policy which has matured and has been credited to my NRO a/c ( Rs 15 Lacs ). Pl. suggest the best investment so that I don’t get affected by TDS year after year. Can I transfer it to my NRE a/c or to my overseas a/c in Dubai. I am a resident of Dubai presently. How tedious is this procedure? Pl. assist.
The interest on NRE is not subject to income tax. So recommended to invest in NRE bank FD. Please contact your CA for 15CB/15CA to transfer funds from NRO to NRE account. Thanks.