Revised Forms 15CB/15CA and Updated Procedures for Outward Remittance of money (including NRO to NRE transfer)

On August 5, 2013, CBDT (Central Board of Direct Taxes) changed the rules, procedures and forms for making payment to a non-resident from October 1, 2013. The revised forms and procedures will also be applicable for transfer of funds from NRO to NRE account.

While the revised rule reduces the procedures for certain payments, it shifts the onus on the remitter and increases the liability of the Chartered AccountantsIt is very important for NRIs as well as Chartered Accountants to know the differences and familiar with the changes. Let’s analyze the changes and its effects.

Segregation of Payment and related procedures:
For any payments made to NRIs from October 1, 2013, the payment is to be segregated into following three payment types/categories. The procedures and forms are different for each category.

  1. The payment  does not exceed Rs. 50,000 and aggregate of such payments does not exceed Rs. 250,000 during a financial year
  2. The payment is not chargeable to tax and the nature is included in the “Specified List”
  3. Any other payment

CA Certificate in Form 15CB:
One of the important changes made by the notification was to reduce the requirement of a Chartered Accountant (CA) certificate in Form 15CB for certain payments. From October 1, 2013, CA Certificate in Form 15CB will not be required for payments in first 2 categories. It means No CA Certificate for any payment that does not exceed Rs. 50,000 or aggregate Rs. 250,000 during a financial year or if it is covered in the specified list. The specified list specifies 39 nature of payments and also mentions the purpose code for each nature.

For any other payment, CA certificate in Form 15CB, which is completely revamped, would be required. While Form 15CB kept the basic information the same, such as name, address, country of remittance, amount of remittance, bank details, nature of remittance, etc., it changed other important sections and would require Chartered Accountants to determine taxability of the remittance as per Income Tax Act and DTAA, relevant section of the IT Act or Article of DTAA, TDS rate and tax liability under both IT Act and DTAA, basis of determination or reasons if not taxable.

Form 15CA:
The information in Form 15CA to be furnished by the remitter electronically to the Income-tax department (www.tin-nsdl.com) and thereafter signed printout of the said form shall be submitted to the authorized dealer (Bank) prior to remitting the payment. While there is no change in the procedures, the Form 15CA has been revised.

The revised Form 15CA has 3 parts. Information in Part A of the Form 15CA is to be furnished if the remittance does not exceed 50,000 or 250,000 in aggregate in a financial year. For Part B of the Form No. 15CA to be used when nature of remittance is covered by the “Specified List”. For any other payment, information in Part C of the Form 15CA is to be furnished.

Part A and Part B of the Form 15CA require basic details of Remitter (name, address, PAN, status), Remitee (name, address, PAN, country) and Remittance (bank details, proposed date, nature, and code of specified list or whether taxable, TDS rate and amount or reasons if not taxable). In addition, the remitter needs to certify that the income is not chargeable under provisions of Income-Tax Act and is not liable for TDS and does not require a certificate in Form 15CB.

Part C of the Form 15CA is to be used when CA Certificate in Form 15CB is received. It has two sections. Section A relates to General Information of Remitter, Remitee, Accountant and AO Order, if any. Section B is to be prepared as per the certificate of the accountant and has all the details as included in the Form 15CB as explained above.

What does this all mean for NRIs?:
For NRIs, who is remitting the money abroad or transferring the funds from NRO account to NRE account, will need to follow the revised rules, furnish the updated forms and complete the new procedures from October 1, 2013.

  1. If the payment does not exceed Rs. 50,000 or aggregate Rs. 250,000 in a financial year, remittance can be made just by submitting Part A of Form 15CA but NRI will assume all the liability for the transfer.
  2. Only three natures (i) loans to NRI, (ii) remittance by non-residents towards family maintenance and savings and (iii) remittance towards personal gifts and donations, are useful for normal NRIs that are included in the specified list. For such remittance, NRI will be required to certify of its taxability as mentioned earlier.
  3. NRI would have to know or learn how to submit the Form 15CA online without the help of a Chartered Accountant if no CA Certificate in Form 15CB to be submitted.
  4. Any other payment or for transfer from NRO to NRE is not included in the Specified List. As a result, NRIs are to obtain the CA Certificate in revised and detailed Form 15CB and furnish the revised Form 15CA.
  5. As new procedures shift the onus to Chartered Accountant, he/she may require additional information, may not be aware of the updated procedure or be reluctant to issue the certificate quickly.
  6. NRIs may also be at the mercy of the bank employees, who may not be aware, not have sufficient knowledge or experience of the new procedures.
  7. Knowledge/Experience of Chartered Accountant and Liaison with the Bank would be key from October 1, 2013.

Summary:

  1. Income Tax department would be able to get all the relevant details (Tax section, DTAA articles, rates etc.) and track the remittances better.
  2. If No Certificate in Form 15CB, the responsibility of determining taxability would be on the Remitter.
  3. Chartered Accountants would have to be EXTRA careful as they would now have to research in detail with income tax section and DTAA article number and provide specific detail, thereby increasing the responsibility of determining taxability of remittance. This could increase the time and cost to issue the certificate.
  4. If you are planning to remit funds outside India or transfer from NRO to NRE, please complete the transfer BEFORE Sept. 27, 2013 (Friday) or be ready for delays and to spend time or money in liaison with CA and bank.

PLEASE NOTE that these rules have been revised and circular has been superseded by another CBDT circular 67/2013 dated Sept. 2, 2013. For the latest information, users comments and my answers/explanations, visit the blog “15CA/CB rules revised Again: 15CA/CB May NOT be required for NRO to NRE transfer”.

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.

About Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India)

Mr. Jigar specializes on NRI Investments and Taxation. He is proud to be one of only 21 CFA Charterholders in India working as consultants. (In 2011, when he became CFA Charterholder, out of 97,173 CFA Charterholders in the World, only 697 Charterholders were in India and only 3% work as consultant; Source: www.newcfa.org). He received his MBA (Finance) from University of Illinois, Chicago, USA, CPA from USA and a Chartered Accountant from India. Jigar has over 15 years of professional experience including more than 4 years with KPMG USA’s Risk Advisory Services. Currently, he provides Wealth Management and taxation consulting serving clients from USA, UK, Americas, Europe, Middle East, Asia, Africa, Australia and India.
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266 Responses to Revised Forms 15CB/15CA and Updated Procedures for Outward Remittance of money (including NRO to NRE transfer)

  1. Nagendra Bhat says:

    Hello,

    While uploading the Form 15 CB, following errors have been committed by me.
    1. Management fees paid under Technical Fees. DTAA applicable Rate- 20% but TDS done by the client was 10.30%.
    2. DTAA mentioned rate 20% instead of 15% as per Article 13 but TDS done at 10.30%
    3. Item no 10 (A) in Form 15 CB, erroneously mentioned “No” for Technical Fees but in fact it was done under Technical Fees. Hence, rate of DTAA not mentioned.

    In all the above case, TDS done at 10.30% which is lower than the DTAA. Kindly let me know whether this is correctly done and implications if any on this.
    Best Regards
    Nagendra

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You may withdraw the form 15CA and the payment won’t be processed. You may revise your 15CB and also want to inform the jurisdictional AO for the same. Thanks.

  2. Gavin Pais says:

    Greetings Mr. Jigar,

    Firstly i thank and applaud you for your wonderful contributions to the blog.

    Im an Amazon Seller based in Dubai, UAE
    I would like to purchase my inventory in China using my NRE Account
    The purchase of Inventory would be shipped to Amazon USA

    1. Using my NRE Account for payments to my supplier in China, is my payment
    taxable ?
    2 . Please advise the forms that i am required to fill and submit to my Bank in India.
    3. What codes do i use for reporting forex transactions reporting purposes
    4 . Do i have the option of using the DTAA if in case i am taxed for purchase of
    inventory in China.

    The reason for posting this question is to find a way to reduce or pay no taxes legally
    Your valuable inputs would be truly appreciated

    Thanks,
    Gavin

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      As you are an NRI and not doing any commercial activities in India, I would recommend transferring your money to UAE account and make payment to avoid any tax or FEMA complications. So first do a wire transfer to your Dubai bank and make payment to Chinese supplier. Thanks.

      • Gavin Pais says:

        Thanks for your response Mr. Jigar.

        Lets say for the sake of argument and to better understand the Tax advantages for an Indian resident running a Business in India lets use a hypothetical scenario.

        Im an Amazon Seller based India

        1.I would like to purchase my inventory in China via Alibaba using my Ordinary resident Credit Card
        The purchase of Inventory would be shipped to Amazon USA
        Is my payment for Inventory taxable ? If yes can i claim a TDS or GST Credit against the sale in the USA

        2. I am also aware that import of services from USA like Domain, Email ID, Websites, Logos, Inspections of Goods and setting up an Amazon Professional account are subject to GST Tax (Approximately 18 % GST)
        Are there alternatives for an Amazon seller based in India to claim a GST Credit ? If yes how ?

        The reason for posting this question is to find a way to reduce or pay no taxes legally

        Thanks in advance,
        Gavin

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          No need to take any hypothetical scenario. You are an NRI so better to take your scenario. You may consult your CA for any hypothetical scenarios. Thanks.

  3. Gagan Nanda says:

    A Company has issued 15 CA to a NRI in USA for technical services but amount not remmitted and expense was also not booked in COmpany’s Accounts. WHat are the consequences and what will be the next step to cancell that 15 CA form?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I think you have few days to cancel the 15CA. You may also inform the IT officer of the same. Thanks.

  4. Pradeep Kumar N says:

    Further to my below query, I want to ask how to go about for the remittance of remainder amount to the foreign company? Note: TDS has not been remitted

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Inform jurisdictional ITO and make the payment. Consult your CA. Thanks.

  5. Pradeep Kumar N says:

    Sir, we have shown tds in form 15cb and we have already made payment to the vendor based on that form 15cb but now we realised that no tds is applicable to that transaction. How do we go about this and the foreign company wants the full payment .. please suggest

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You would need to inform the IT department as as per their records, TDS was required to be deducted and is properly deducted. If you are changing the view, it needs to be informed to the jurisdictional ITO. Ofcourse, the foreign company would ask for the payment and you would have to pay them too. Thanks.

  6. Sunaina jawar says:

    I have wrongly entered amount in 15cb. I didn’t generate 15ca yet. What to do to change the amount. I cant see any cancel option in the website.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Unfortunately, you may not change 15CB. Only 15CA can be withdrawn within 7 days. As 15CA was not generated, it may be okay as the money did not get transferred. You may issue another 15CB correctly and then file form 15CA properly to transfer the funds. Thanks.

  7. namdev patil says:

    Sir i have filed form 15 CB along with 15CA but i was unable to view it or download it…while trying it is showing that RECORD NOT FOUND
    Please help me out this…
    What is the procedure for this to go ahead

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Try filing 15CA with the acknowledgement of 15CB. If 15CA has been filed, the system would not allow you to re-file 15 CA. If not, the 15CA may not have been submitted and you would have to re-file/submit 15CA. Thanks.

  8. NILANJAN MITRA says:

    One persons(NRI) wants to transfer balance in NRO A/c to USA to purchase a house/ flat in usa. But there is no specific purpose code in RBI List. whether I can use PURPOSE CODE S0014 Repatriation of Non resident Deposit FCNR(B)/NR(E)RA.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      As you are not remitting funds out of FCNR or NRE account, this is not a right purpose code. You may use the code relating to investment in immovable property or for savings. Thanks.

  9. We have to make the payment to one of our vendor and we have deducted TDS @ 20% under DTTA . While typing 15CB there was mistake in the word where we have to mentioned State so by mistakely it has been typed as Stae outside123 India in FORM 15CB and which has been uploaded and also got the Acknowledgement number. while uploading the form 15CA it is linked to 15CB as you have mentioned but while submitting i am getting invalid special characters so it not getting upload so how can i withdraw form 15CB or is there we can upload form 15CA part A as tax has been deducted @ 20% and the amount is approx 3.50 lacs

    Pls guide us on the same

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      The 15CA needs to have an ack. no. of 15CB. Also, while 15CA can be withdrawn within certain days, 15CB can not be withdrawn. Also, if 15CA is not filed, money can not be remitted. So while 15CB can not be withdrawn, it will become ineffective. So you may obtain another 15CB and file 15CA with acknowledgement number of updated 15CB. Thanks.

  10. Ankur Jain says:

    I have filled form 15 ca bt i was noit doing that transaction. I was not able to withdraw the same in seven days. How can i withdraw the same now.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I don’t think you can withdraw now. You may want to apply/inform the ITO of the situation. Thanks.

  11. sneh says:

    Hi,

    I am Indian freelancer and I get around 3000$ per month but I am transferring this to my saving account. Is this crime?

    do I need business or current account but I do not have any firm registered.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      As you are an Indian resident, you are okay. There is no need to have a current account or firm as you can provide service in an individual name. However, you would need to include the income in your income tax return. Thanks.

  12. Sumit Wali says:

    Dear Sir,

    We have uploaded a Form 15CB in which there is an error. How can we rectify/revise the same.

    Thank You.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      15CB would have been filed with 15CA. You may withdraw the 15CA and as a result would withdraw 15CB as both are linked and then submit a fresh 15CB and related 15CA. If 15CA was not filed, you may submit revised 15CA and then with the new acknowledgment number, submit 15CA. Thanks.

  13. PK says:

    Dear Sir,
    I had entered into an agreement to sell in the month of May 2016. The fact of his being a NRI came to my knowledge at a later date and an application was made under Section 195(2) of the Income Tax Act for determination of sum chargeable to tax on which TDS needed to be deducted.
    As the certificate from the department was taking time, I went ahead and paid tax @20% on the token amount in the month of August 2016. Upon filing of the return, IT has issued a notice under section 200A/ 206CB for short deduction/ collection.
    The follow up from the IT department revealed that “nature of remittance/country mentioned in your statement is not covered under DTAA, hence short deduction default has been raised”.
    Please guide me on the following:
    1. Is the notice is for the reason that I had not attached any forms 15CA/ 15CB with the return filed.
    2. Whether forms 15CA/ 15CB are required to taken from the seller of the property or I have get these done myself.
    3. How to correct the error happened while filing the return.

    Thanks and Regards.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. I am not able to understand the transaction. The liability to deduct and pay the tax is of the purchaser and not seller.
      2. Assuming you are the buyer, if you had deducted or paid tax @ 20%, I am not sure how the IT calculated short deduction. I would think deduction/tax payment would be higher as it was without regard to your cost of acquisition and/or indexation.
      3. 15CB/15CA needs to be issued by the buyer. The seller may issue the same when he transfers the funds from NRO to NRE.
      4. Only after understanding your case or reviewing the agreements and IT notice, I am would be in a better position to respond as I not sure of the error. Thanks.

  14. Ami Shah says:

    Hi Jigar,

    We are filing Form 15CB for a particular payment. However, Tax has been deducted on 3 separate dates, viz 29.12.2015, 30.03.2016 & the date on which you would be booking the balance Liability. The electronic Form 15CB will not take 3 separate dates, only 1 date will have to be taken. So can you please help us as to which date should be considered, or whether we should upload 3 separate Form 15CB?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You would book TDS on payment or booking the liability, whichever is earlier. If you are booking the liability, you would have booked the same in total on a particular date. However, for the payment, you would deduct the TDS while making the payment. You would determine if the payment during LY were for advance or also for the liability. If payment already made, TDS would also been deducted and 15CB/15CA would be completed at that time.

      Anyway, without knowing detailed transaction, I won’t be in a position to answer correctly. It would also depend in which year you are recording the expense. However, assuming you would be taking the payment as an expense in 2 years 15-16 and 16-17, I would use 2 15CB/15CA for different years for simplicity as well as for easy reconciliation of TDS, expenses, payments and books of accounts. However, please check with your CA. Thanks.

  15. Dilip Kumar somani says:

    A trust want to make payment to a person on account of Coaching fees USD 2500(INR 170000) plus Travelling reimbursement

    Coach is a citizen of New Zealand

    At what rate TDS is deductible.
    Procedure to be followed.DSc is not available with Trustee.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I would think it may fall under the fees for technical services. You would need to check the DTAA between India and NZ to check the TDS rate. The actual TDS rate would depend on whether the coach has a PAN (Permanent Account Number from IT in India) and/or TRC (Tax Residency Certificate from NZ) and the rate of TDS under IT and DTAA. Please check with your CA. Thanks.

  16. Jinendra Bakliwal says:

    Dear Sir,
    I want to make payment of US$ 1100 for exhibition in foreign in foreign currency.Does it required CA Certificate 15CA?
    I want to know there is any provision in Income tax or relevant DTAA for deduction of TDS while making payment to Non- resident (the payment is to be made in the name of an individual) for exhibition in foreign country(here VIETNAM ).
    Please help me because bank asked for 15CA

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      CA certificate is not required for exhibition payment. As the nature of payment is not taxable, just file form 15CA part D. Thanks.

      • chethan says:

        Hi Sir,

        I have a similar question with regards to money transfer I have been doing from my company to a software firm/developer in Vietnam. The remmitance is in USD and I have been generating only FORM 15CA. But so far I have not deducted any TDS, as there is no tax deduction in Vietnam for IT/ technical services.

        My question is 1. Was TDS to be deducted
        2. Will I be questioned from Income Tax for this
        3. What should I do If I get notice

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          I am not sure about the DTAA between India-Vietnam whether any tax to be deducted or not. As you mentioned that no tax to be deducted, it is based on the DTAA. So if the payment is taxable in nature as per Indian tax laws, 15CB would be required. Please note that whether relief under DTAA is available or whether TDS is required to be deducted as per DTAA can only be ascertained by a CA. Thanks.

  17. Abc says:

    Dear Sir,

    I am NRI and planning to sell my property in India. I have a joint NRO and NRE account with my wife’s name first. Can I deposit the sale proceeds in the joint account and transfer from NRO to NRE? In whose name will the 15CB be issued?
    Or is it advisable to open a new joint NRO and NRE account with my name first? The property is solely in my name.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      In India, first holder is assumed to be the owner of an account. While you can, for simplicity in explaining the transaction, I would advise you to open a bank account (both NRO and NRE) where you are the first owner. Thanks.

  18. Brijesh Negi says:

    Dear Sir,

    Please Let me know about TDS Rate on payment made to foreign company. company dont have any PAN.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      TDS rate would depend on the nature of remittance. The Rate of TDS would be higher of (1) Income Tax rate (2) DTAA rate or (3) 20% (as no PAN). Also, you would need to gross up the amount i.e. if you want to pay $2000 and you determine that TDS @20% will apply; the grossed up value would be $2500 – TDS $500 and $2000 remittance. Thanks.

  19. Khushboo says:

    Sir,

    My company is remitting an amount to USA for the subscription of Securities. What are the compliance after remittance that the company needs to follow ?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      It would depend on the nature of transaction and securities that you plan to purchase, whether investment, whether personal or business, whether JV/subsidieary, etc. You would need to follow FEMA rules. Please review master circular/direction on LRS and investment outside India for more details. Thanks.

  20. Col. A. S. Bindra (Retd.) says:

    Dear Mr. Patel,
    My wife and I are US citizens. I file my Indian tax return electronically after checking TRACES, and my returns are accepted without any problem. In March 2016, my wife sold her flat in Gurgaon. The buyer deducted 22.66% as TDS. We have parked the sale proceeds in our NRO account in Delhi. I plan to file my wife’s tax return electronically, after calculating the capital gain using indexation. Please advise if this is permissible, or I must secure the services of a CA in India. In case I can file the return myself, what forms are required to be furnished to the bank for repatriation of the sale , are they 15CA and 15CB . the bank says to provide form 15CA. Is the bank correct in demanding Form 15CA? Can I file these forms myself or I MUST retain a CA in India?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. You may file the tax return on your own.
      2. As payment is of sale of immovable property, 15CB/15CA may be required. While 15CB can only be given by a CA, you may file 15CA on your own by logging in to the income tax website. Thanks.

  21. CA Chandravijay Shah says:

    15CB is already uploaded on 20.04.2016. However, the currency was wrongly stated therein. Can it be revised?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You would need to submit it again. As per revised procedures, 15CB acknowledgment number is linked with 15CA. If 15CA is not filed, money won’t be remitted. So you may issue another form and inform IT dept to ignore/cancel the 15CB. Thanks.

  22. Ankita says:

    Sir
    I have uploaded form 15 CB for my client but by mistake the wrong amount of form 15 CB was entered.
    what can I do now? can form 15 CB be revised?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      While it may not be revised, 15CB needs to be accompanied with 15CA and 15CA can be withdrawn. If 15CB is not accompanied with 15CA, money won’t be transferred. So I think you may issue another 15CB and then file 15CA to process the payment. While I think the 15CB stands cancelled, you may contact the IT department to cancel the 15CB. Thanks.

  23. AASKARAN says:

    A NRI SALE THE PROPERTY IN INDIA & ISSUE A FORM 15CB BUT MY QUESTION RELATING TO COLUMN NO. 6 & SUB-HEAD

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      The 15CB has been revised. Please elaborate on your question. Thanks.

      • vasantrai j doshi says:

        hello sir,
        our client wants to remit money from nro a/c to nre a/c to suadi arabia. he has share investments in India and remittance money is sale amount of shares. this amount includes Principle investment cost, short term capital gain/long term capital gain(tax free)/short term-long term capital loss (not taxable).
        what would be the appropriete point to be selected in column no. B 6- nature of remittance as per agreement/ document & B-7 furnish the relevent purpose code as per RBI.
        also now in latest form in point no. 13 they ask for actual amout of remittance after tds (in foreign currency). how we can say the exact remittance amount in foreign curreny when the exchange rate would be different ( date of certificate and date of actual remittance would be different)

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          1. You will be able to determine the nature. If more than one nature, you may want to issue separate forms.
          2. It is okay to use estimate for conversion. If you are transferring money from NRO to NRE, both Indian currency and foreign currency would be INR only and no need for any conversion. Conversion rate is relevant only if money is going out of India (i.e. directly transferring from NRO to Saudi Arabia. Thanks.

  24. FINANCE says:

    hi im planning to fund transfer to foreign a/c for my agent of freight charges. now im india. my agent in usa. so pls advice me who is the remitter.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Remitter is the person sending the money. Remittee is the person receiving the money. Thanks.

  25. Sonali says:

    Dear Sir,

    My company is also import material from china, USA and Germany, at the time of payment to this companies ,I have submitted form 15Ca & Form 15cb to Bank as on date 31/03/2016, but I want to know about new amendment or new notification , have I submitted form 15ca form 15cb? This is applicable or not?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      As you wanted to make payment on March 31, 2016, 15CB/15CA would be required. From April 1, 2016, payment for import has been included in the specified list and would not require the CA certificate in 15CB or filing of form 15CA. Thanks.

  26. Afnan says:

    Dear sir,
    I am importer , i was ipmort a material from China on terms of credit, how to transfer money my current account to Chinese bank account.
    INR to USD
    Thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Contact your bank and follow procedures for making payment. Thanks.

  27. Sonal says:

    Hi,

    I am planning to buy 2 bhk flat in Pune from NRI for cost of Rs 63 lakhs. NRI has Indian PAN card(Mumbai address) currently lives in Dubai. He purchased this flat from his NRE account as investment in year 2008. Address mentioned in property documents agreement between seller and builder is his Dubai address.

    I will be paying 33 from my own saving and 30 lakhs from home loan. Amount for this transaction will be deposited in seller State Bank of India Mumbai NRO account. I will be deducting TDS @ rate of 20.66% before making payments to NRI in NRO account.

    Just wanted to clarify TDS deduction process for NRI after changes in place due to Finance bill 2015:

    a. As a buyer do I need to fill form 15ca and 15cb before making payments to NRI for this property transaction in NRO account?

    b. If I need to fill form 15CA and 15cb before making payments then do I need fill these form’s two times first when I make payment from my own contribution and second when home loan cheque is disbursed?

    c. Is there any other form or tax i need to pay or produce for this property transaction?

    d. What proof’s shall i keep with me for this transaction when i pay my income tax for financial year 2015?

    Thanks and Regards,
    Sonal

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      a. You would need a TAN (TDS Account Number) to deduct TDS. you would deduct TDS and issue the certificate. the form 15CB is a CA certificate and it can be done by CA of buyer.
      b. The TDS to be deducted at the time of making payment (each) or recording the transaction (registration), whichever is earlier. So in your case you would deduct TDS and the bank would also deduct TDS and make balance payment to the buyer.
      c. There is no additional tax to be paid or deducted.
      d. You are paying income tax on behalf of buyer. TDS is not your tax. For you, the cost of property is Rs. 63L only. The total of TDS deducted and paid to IT dept, net amount paid by you to the buyer and net amount paid by bank to the buyer would be Rs. 63L only. You would keep all the acknowledgement as well as copy of cheque and bank statement as proof of payment. Thanks.

  28. Bharat says:

    Dear Mr.Patel
    I would like to know if there is any service tax on immoveable property that is either commercial or residential where rent is being received from tenant if so what is the percentage, if such amount of service tax can be recovered from the tenant and what shall be the due date to deposit with income tax and what is the procedure.

    Thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      If rent received is more than 10L in a year, service tax will apply. Service tax is an indirect tax and is on the tenant. You would collect the tax and pay quarterly by 5th of July, Oct, Jan for 1-3 quarters and by March 31 for 4th quarter. You are also required to file service tax return on half-yearly basis by 25th i.e 25th Oct and 25th April. Please consult your CA or any professional practicing service tax. Thanks.

  29. Sachin says:

    Dear Sir,

    I would like to transfer AED 7000 from HDFC Bank India to UAE Bank’s sundry creditors account through outward remittance for closing my liability of Credit card’s outstanding payment which is full and final settlement amount.
    HDFC Bank is demanding Form 15CA & CB.
    Kindly confirm whether these forms applicable for this transaction.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I would assume that you were an NRI before and now is a resident. Currently, any transfer to NRI/outside India from NRO or resident account require 15CB/15CA so you would need those forms to transfer the funds. Thanks.

      • shailja says:

        Dear Mr. Jigar! My case is exactly similar to Mr. Bharat’s. I’ve remitted 7000 dirham from my hdfcb bank account to mashreq bank but I’ve apprehension if the whole 7000 dirhams will be credited towards CC payment or some beneficiary charges be deducted? I had opted for charges to be levied on self. Please help.

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          Please check with your bank about the charges. Thanks.

  30. Bharat says:

    Dear Mr.Patel,

    Thank you for your answer
    Further to my question For example a resident doesn’t have any other income and if he earns income from selling shares and if it is well below his basic exemption income of Rs 250000.00 in this case still he has to pay tax 15% or there will be no tax as it is under his basic exemption.

    Thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      In case of resident having income of less than 250,000 from STCG on sale of shares after paying STT, no tax is to be paid but I would recommend to file tax return. Thanks.

  31. Bharat says:

    Dear sir,
    As a resident indian dealing with company shares what is the duration of short term capital gains with percentage of tax liability and long term capitals gains period and percent of tax

    Thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I would assume shares of public limited company and bought/sold through exchange after payment of STT (Securities Transaction Tax). In that case, short term is <1 year and tax is 15%. Long term (>1 year) capital gain is exempt from income tax. Thanks.

  32. Brig Krishan Kumar says:

    Dear Sir
    Very informative blog. Got to read your response to so many queries on remittance.
    I want to remit Rs 1600000 to my daughter , a UK citizen as gift out of my tax paid amount in bank.
    I understand from your reply to similar query that 15CA/15CB not required, yet bank is insisting.
    My CA has agreed to give 15 CB, but I think I have to fill 15CA on line. Does it require digital signatures (I dont have one), what should I do to remit amount expeditiously

    Good wishes and regards

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Now 15CB/15CA would be required. You can ask your CA to fill the 15CA on your behalf. Also, digital signature is not required. You can submit the form, print the acknowledgement and sign manually. Thanks.

  33. puja says:

    Dear Mr. Jigar,
    You are doing wonderful job for our countrymen. I have few questions
    1 I am resident Indian If I rent my apartment what shall be tax liability, will my tenant deduct TDS what shall be the percentage and how can I know that said amount is deposited with IT.Is there limit in rent whereby TDS will not be deducted.
    2 What is the definition of HUF( hindu undivided Family) who can be HUF
    3 My grandfather purchased house in 1936 latter that house was in the name of my father by way of heirship in 1994 and my father transferred that house in my name in 2014.If I sell that house what shall be CGS liability, can I save CGS by investing in Govt bonds,from the funds acquired from this sale, can I purchase property abroad what shall be the procedure to do so.

    Thanks
    puja

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. For resident, the TDS is to be deducted for rent of Rs. 180000/yr.
      2. HUF can be created for any Hindu family i.e. married couple
      3. The sale of property would result in long term capital gain and you would get benefit of indexation. While you can invest in a specific govt. bond upto
      Rs.50L, you are not allowed to buy a property outside India to save capital gains tax. I will need more information to accurately calculate the tax on sale of property. Please contact us if you need any consulting for the matter. Thanks.

  34. Thilak N says:

    Hi Friends.

    The issue is . I have generated Form 15CA last week and paid the amount without TDS for a particular transaction (Form 15CA Generated – after Grossing up the invoice value of TDS and then shown as deducted – paid the invoice value). Now Want to revise Form 15CB without TDS in the Form 15CB itself and generate Form 15CA also.

    How to revise it? Whether we have to file any letters to IT as already payment done on basis of old Form 15CA Form.

    Pls revert at the earliest.

    Thilak N

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Decide what is the correct way and amount for issuing 15CB/15CA. Based on that, revise / keep the forms. If revision is required, update the forms and write to the ITO explaining the error and a request to ignore the earlier forms. Thanks.

  35. sandeep Darekar says:

    I was looking for information about remitting funds to UK and come across this website. Please guide us. My brother in law was employee of Patani, transferred to UK on a project around 2006-07. He was getting salary in GBP in ICICI bank account at London, where as he was receiving some 10000-12000 in his local ICICI account in mumbai. His stay was extended and later he joined UK firm. Meanwhile he and family got citizenship of UK. His family includes wife who is working woman and two kids born in london. He has brought two properties while in UK, Loan from ICICI bank(Indian a/c) and paying EMI by local income of rent and addition from NRE a/c. His local a/c is not been converted to NRO yet. He has not filed Tax returns here in india during above period but complied in UK. He wanted to sell one of his property and remit funds to UK to buy house for his use.
    Please guide us, We spoke to our local CA, seems not sure about this procedure.
    Thanks in advance.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I would suggest to first inform bank and change his residential status to NRI with the bank and change the account to NRO. I would also request to inform your brother’s residential status (NRI) to the buyer as the buyer needs to deduct TDS. Please note 1% TDS is for resident seller and it does not apply to your brother. I suggest you contact your CA to understand the procedures and related compliance requirements. Once TDS is deducted, ask your CA to issue the CA certificate in form 15CB and file Form 15CA and then liaison with the bank to transfer the funds to NRE account or to his UK account. Your CA would also be required to file income tax return after end of the year i.e. after April 2016. Thanks.

  36. paul says:

    I transferred money to India some years ago and it has been in FDs with tax on the interest deducted at source. I need to bring back the original capital plus interest income. All transactions have been with the same bank. Do I still need 15C forms? I do not have a PAN number. Is that essential?

    Thx.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Yes, you would need a 15CB/15CA form as any transfer now require these forms. PAN is mandatory for the 15CA form. Please consult your CA. Thanks.

  37. Arti says:

    Please tell which exchange rate to be used for converting foreign remittance towards purchase of trading items from China,for finding out amount in indian rupees in form 15CA.

    Also please tell me about taxability of such remittance.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Payment for import from a company in China that does not have any establishment in India may not be considered as a taxable remittance. Thanks.

      • PRADEEP MULANI says:

        Dear Sir,

        Answer to first question with respect to which Foreign Exchange Rate is to be taken is pending..

        As in 15CA amount in INR also to be provided..

        Awaiting your reply..

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          For NRO to NRE transfer the foreign currency is also INR and Indian currency is also INR. So there is no issue. If any conversion rate is used. It need not be exact as it tends to change on a continuous basis; however, one amount – either INR or foreign currency needs to be accurate and mentioned when you submit the request to the bank. Thanks.

  38. sundari pillai says:

    Hi,
    My client wants to convert his nro fd to nre fd and has approached for form 15cb

    While submitting form 15ca part B (section B) asks for Taxability provision under Income tax act… what should i mention there

    Thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      While there is no tax on transfer, you would need to verify that the tax, if any, on the amount that you plan to transfer is deducted/paid. Thanks.

  39. Parthasarathy M S says:

    My son is a US citizen. I would like to make a gift to him, which will be credited to his NRO account with a bank in India. Can he transfer the amount to his US account without Form 15CA/CB? He has no tax liability in India, and his latest tax return (AY15-16) has already been assessed.
    Thanks for your considered response.
    Parthasarathy

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I would suggest to give gift directly to his US account. If you transfer funds (gift amount) to his NRO account, he would need 15CB/15CA for transfer to his USA account. There is no tax liability as you are giving gift to your son and foreign gift is not taxable in USA. However, your son may have to declare that he has received gift to IRS. Thanks.

  40. vishal says:

    Hello Jigar

    I am shareholder-director of a company which is based in India (no UK connection), and I am a PIO living in the UK. I would shortly be starting some work for the Indian company – done entirely remotely while in the UK. If the company pays me a salary for that (sent to me in the UK) – would there be TDS applicable on that? Would this be considered as a ‘Salary for employment’ or ‘Directors fees’?

    Many Thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I would suggest you to contact your CA as how you structure the transaction would determine the taxability. Thanks.

  41. shailesh madanlal oswal says:

    my client has imported goods from china. can remittance is chargeable to tax as per income tax act or DTAA (Exporter has no PE In India)

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I don’t think so but you would need to look at India-China DTAA. Thanks.

      • Aishworya says:

        My friend is maintaining a website for which he takes technical support (maintenance of webserver) from a US based company. Bank is now asking for Form 15CA towards invoice payment. We do not deduct TDS on that payment. Please confirm if Form 15CA is necessary.

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          From June 1, 2015, any payment to a non-resident would require 15CB/15CA. I would think the payment may be considered as a fees for technical service and you may also have to deduct TDS. However, I would recommend you to contact your CA, provide the agreement and then ask him to make a determination for taxability and TDS. Thanks.

  42. Vikrant Singh says:

    Dear Jigar ji

    I am and NRI living in New Zealand, three years ago I bought a property in India by my overseas earnings and payment was made by my NRO account. Now I have sold the property and and the money is in NRO account. I want to transfer the money (only overseas money & not capital gain) back to my new zealand account. I checked form 15CA online and under DDTA seaction (i) there is something about “TAX Residency Certificate”, is it mandatory to produce “TAX residency certificate” for outward remittance?
    Thnx
    Vikrant

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You would need 15CB/15CA for transfer – whether you transfer partial or full proceeds. I would suggest to transfer all funds to NRE an then only transfer required funds to NZ. Also TRC is required only if you want to take benefit of DTAA between India and NZ, e.g. income tax says tax rate of 30% and if DTAA has lower rate of 10% and you want only 10% deducted as TDS. In your case, it may not be required. Also, your CA would know how to fill the form. Thanks.

  43. Harshil Shah says:

    Can 15CB form be issued digitally by Digital Sign by CA?

    if no why?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I think it can be. However, I would suggest to check with your bank. Thanks.

  44. Amita Varshney says:

    Our company imports machine spare parts for use in our own factory. Do we need to deduct tax at source from payment to importers(China)

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      No provided supplier does not have any operations in India. Please contact your CA. Thanks.

  45. Geetanjali Kumar says:

    Dear Sir,
    How do we calculate the actual amount of remittance in foreign currency in F orm 15 CB?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      For 15CB/15CA, one amount needs to be exact, either INR or foreign currency. For example you would want to transfer Rs. 1,000,000 or $25,000. For conversion into other currency, take your best estimate based on published rate. Thanks.

  46. Geetanjali Kumar says:

    Dear Sir,
    My friend and her husband are both NRIs.They sold a property in India and since the husband did not have an NRO account in India,the entire proceeds were credited in the NRO account of the wife.
    At the time of paying the sale proceeds,the buyers did not issue 15CA and 15CB and no TDS was made.
    Now she wants to transfer the money in her NRE account.I observed that I would have to show the capital gain 50-50 for both spouses and fortunately there is a short term capital loss.
    My query is that in Form 15CB can i write the name of the remitter and remittee as the wife only as she has an NRO and NRE account?
    Also -15CB point no 8 asks about (a)the relevant section under which remittance covered and also (d) the basis of determining taxable income and tax liability.
    What has to be mentioned there?
    Kindly guide me .

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Assuming property was held 50:50, as India does not have “married filing jointly” concepts, the tax liability is individual for husband and wife. I would suggest for husband to open a bank account, transfer his share to his account and then transfer from NRO to NRE individually for husband and wife. Transfer between spouse in India usually raise flag/doubt with the income tax officers. Thanks.

  47. inderjeet singh chadha says:

    Sir,
    We want to send 1,00,000 $ as gift to our son in usa from our savings, is form 15cb/15ca required for this, as we understand forms are for companies/firms for interest/ dividend or other payments by firms/ companies., and not applicable for individuals. Please high light and guide
    thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Gift of $100,000 to son would not require 15CB/15CA. Please contact your bank and request transfer of funds. You may have to give a declaration. Also, your son needs to declare the gift received as foreign gift to IRS. Thanks.

  48. SRay says:

    Hi Jigar,
    This is great info. Very helpful.
    Couple of questions –
    1) I moved to UK couple of years back before which I worked for 7years at the same organization in India. I redeemed my EPF in May 2014 which got deposited at my NRO account. Can I transfer this amount to my NRE account? Will there be any tax implication?
    2) I also wish to transfer some funds from my NRE account to my UK account. Is there any specific procedure / limit for the same that I need to follow?
    Many thanks.
    Sambuddha

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. Any after tax money of savings or sale of assets can be transferred to NRE after CA certificate and 15CB/15CA.
      2. You just inform your bank and wire the funds out to UK. There is no limit. Thanks.

  49. Ankit Jain says:

    i have a query: if a person filed form 15CA for a purposed date but he or she is not remit fund that day or not in position to do such remittance what is the consequence and how to face this situation.

    can they withdraw form 15CA

    Pl

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      That is fine. From the same 15CA, payment can be made later within reasonable time (about 1 month or even more) depending on the bank, sometimes also 3-6 months. As long as bank is okay with 15CA, payment can be remitted abroad. There is no withdrawal of 15CA. Thanks.

  50. Vishal says:

    Hello Jigar

    I am a UK resident and I am selling shares of an unlisted Indian company to a resident Indian. I understand that under Section 112 (1)(c)(iii), the long term capital gain in India would be 10%. I ideally want the funds to be transferred to my UK bank account. However, unsure about (1) whether the TDS needs to be deducted by the individual who is buying my shares or the bank, and (2) whether I can get it in my UK account or I need to necessarily route it through my NRO account. You input would be much appreciated. Many Thanks.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      For any taxable payment to NRI, TDS is required to be deducted by the buyer. Once TDS is deducted, the money can be transferred to NRE account after CA certificate. I suggest you contact your CA and also ask your buyer to contact his CA for compliance. Thanks.

  51. venugopal says:

    I have to pay my relative for medical expenses etc in India from NRE a/c on loan basis for say, 3 years . How he will have to pay back into my NRE a/c or pay directly thru exchange in dollars in US . Amount more than Rs 15 lakhs approx. If he pays to my
    NRO a/c — how to get back in to NRE a/c
    Request what procedure to follow reg tax, RBI, transacting bank etc

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You may give the loan on repatriable basis to your close relative but certain rules needs to be complied with. If you loan is on non-repatriable basis, the funds can be credited to NRO account. The transfer from NRO to NRE would depend on the RBI rules and regulations at that time. Thanks.

  52. Kartik Trivedi says:

    Our firms needs to send outward remittance in us to a company for database access. Would tds be applicable for this transaction?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I would suggest to check with your CA who needs to review the agreement and the DTAA between India and the country where the company is from to determine if TDS is required to be deducted or not. Thanks.

  53. Vaish says:

    Dear Jigar ji,

    Your blogs are very helpful for aspiring professionals like us.
    It will be great if you can help me in my query.

    When an NRI sells a property then as per provisions of income tax act buyer shall deduct TDS @ 20% (approx.) on SALE CONSIDERATION or assessee should contact AO for lower or non deduction of TDS.
    Is it lawful if NRI compute and pay taxes on his capital gain instead of doing above process? In this case he will end up paying very less taxes as compare to above.

    Can 15CB be issued for repatriation of sale consideration based on payment of capital gain taxes on it?

    Thanks in advance

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Yes. The AO certificate is not mandatory and if the capital gain amount can be fairly ascertained, TDS needs to be deducted only on the capital gain amount. Thanks.

  54. Manoj says:

    Hello sir,
    I am an NRI married to a local. I have a property in mumbai, i would like to take a loan of 50 lakh INR via the bank over the property and transfer the funds back home to my account or my wifes account. How should i go about it?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      As per FEMA, the loan amount would be not repatriable and may not be remitted abroad. Thanks.

  55. Prashant Shetgaonkar says:

    Dear Sir,

    One of my client has taken buyers credit from us which was arranged from JP Morgan Singapore, now while repayment his CA states that form 15CA CB is not applicable to them and is refusing to give.

    How do i suggest or provide him a link so that he can provide the same.

    Thanks,
    Prashant Shetgaonkar

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      15CB/15CA is required for all taxable payment to a non-resident, interest being a taxable payment, any payment to JPM-Singapore would require 15CB/15CA and also TDS may be applicable. You can give the form itself which states any taxable payment to non-resident require 15CB/15CA. If you are from bank, banks usually have the best excuse for requiring 15CB/15CA is “It is our internal requirement and payment can not be processed withour 15CB/15CA”. Thanks.

      • Aakash Rana says:

        dear sir,
        with Respect
        Sub:How to Cancel Form 15CA.
        i want solution of Form 15CA,Actually i was upload 2 times of same Form 15CA of Same vendor.

        Thanks & Regars
        Aakash

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          The latest submitted form will be the final one. You may request (write a letter) to the ITO to ignore the first 15CA. Thanks.

          • Heena says:

            Dear Sir, I have submitted this form 15CA/CB and the amount mentioned in the form was wrong. I want to re-issue a new form. So whats the procedure to re-issue a fresh form and cancelled the previous form?
            Awaiting for your reply.
            Regards,
            Heena!

          • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

            Please confirm if the amount in 15CB or 15CA or both forms is wrong. If only 15CA, you can re-submit with a note that it was corrected. If only 15CB, please revise 15CB. If both, re-issue 15CB and resubmit 15CA and make a note of the same. You may also send a physical request to the concerned ITO informing about the fact that the payment is only one but form submitted twice due to error. Thanks.

  56. sunil says:

    Please advise whether 15 ca/cb required to effect correspondent bank charges (fgn bank commission, interest etc). ex. indian bank has issued a BG on the basis of counter guarantee issued by foreign bank and foreign bank is claiming commission. for remitting such commission whether 15CA/CB required?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I suggest you check with your bank. If bank mandatory required 15CB/15CA for payment of bank charges/commission, you would need to give them if you want to remit the funds. Thanks.

  57. DESIKAN says:

    Sir I have a query. Our Company have remitted money abroad for professional services after deducting applicable TDS. But due to ignorance, they have not filed the FORM 15CA and Bank also did not ask for hard copy of Form 15CA at the time of making remittance. Can we file the form 15CA belatedly now? or what is the remedy available now. Pls help.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      It is bank’s duty to verify that the tax if any, on the transfer, has been made. For any taxable transfer, 15CB/15CA is required. The 15CA has a date and the proposed date of transfer need to be the date of submitting 15CA or later. I would assume that you would already have 15CB and submitted the same. If not, bank would have taken a declaration from you about the same. I would suggest you to contact your bank to understand how the transaction was completed and then determine the next steps, which may be to file 15CA or approach the income tax officer or do nothing. Thanks.

  58. Rishabh Chopra says:

    Hi Jigar

    I am an Indian citizen and I have recently partnered in a UK based firm with 44% shares. Its a private ltd. company. I need to transfer $70,000 for this project from my savings account to the company account in UK.
    What route can I opt?
    Do I need to declare this here with any government body?
    Do I need CA certificate?
    If so, under what heading I need to declare this? Is it Indian investment abroad in equity?
    What all paper formalities need to be provided to bank so that they can do this transfers?

    It would be great help if you could help me on above.

    Thanks
    Rishabh

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      yes, it will be your foreign investment. And, I think a CA certificate may be required. I would suggest you to contact your CA and your bank for the transfer. Thanks.

  59. Narinder Sharma says:

    Hi,

    I am a Chartered Accountant. One of my clients, who is a senior citizen, had sold a house in FY: 2000-2001. Thereafter she invested Rs.50.00 lacs in capital gain bonds and paid tax on the balance amount of gain. Now she has got the refund of the amount invested in bonds and has also paid tax on the interest earned thereon. However while filing the ITR for the FY: 2000-2001 she had selected wrong assessment year. I am able to verify from the documents produced that tax was actually paid though by mentioning wrong assessment year. She wishes to transfer her funds from NRO account to NRI account.
    Can I issue Form 15CB?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I think 15CB/15CA may not be required as the redemption of capital gains tax bonds is not taxable. Only interest is taxable. However, if you have to issue 15CB and if you think the tax has been property paid on sale of property and the interest amount of capital gains tax bonds after verifying the assessment orders, you may issue 15CB. However, I would try to convince the bank to transfer without 15CB. Thanks.

  60. Priya says:

    Hi,

    I managed to get 15cb and 15ca
    The proposed date of remittance is mentioned as 21/01/2015. Can I go to the bank on 19/01/2015 to give 15ca and 15cb. Or I will have to go on or after 21/01/2015?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      While you can go before 21/01, the money will be transferred only on or after 21/01/15. Thanks.

  61. Glenn Marchon says:

    Please note that I wanted to break my US$ fixed deposit and send some money to my sister in the US from my FCNR deposit. SBI Bombay branch, The officer says that the RBI rules does not allow transfer money from my FCNR to another person account, Please let me know if I can or not do this.
    Thanks
    Glenn

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You can transfer the funds to your US account and then transfer to your sister. Thanks.

  62. Prem says:

    Hi,
    My reltive is NRI.
    He had applied for shares long back in IPO’s of Companies who had taken blanket permission for allotment to NRI’s on repatriation basis.
    He had later demated the shares.
    Now he has sold a part of his holdings and broker has given him a cheque.
    He deposited this cheque in his NRI S/B A/c but bank has not given him credit saying that it is a local cheque.
    What is the way out?
    Bank says to open a NRO a/c and deposit the cheque.
    If he does so and later after say two years wishes to remit the funds abroad then what are the procedures and and what can be the hurdles?
    Thanks
    Prem

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. NRIs are only allowed to invest through Portfolio Investment Scheme (PIS) of RBI. PIS allows investment on repatriable (NRE-PIS) and non-repatriable (NRO-PIS) basis. It appears that the investment was made as a resident.
      2. There is no NRI account. It is either NRO or NRE.
      3. Sale proceeds of only shares held in NRE-PIS account can be credited to NRE. All other sale proceeds would go to NRO unless you satisfy the bank with all the proofs from Company/bank/RBI that proves that the investment was made from the funds brought from abroad or out of NRE account.
      4. If you can’t convince a bank, you would need to contact your CA for 15CB/15CA and transfer the funds to NRE account. Thanks.

  63. taruna says:

    Hi Jigar,

    I opened a NRO FD with HDFC bank for which i gave a cheque from my NRE ac from another bank. now the FD has matured and I would like to transfer the funds from NRO to NRE account. Would I still be needing FORM 15 CA and CB, even if i can prove the source of funds. All tax deduction has been made on the NRO FD.

    Thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I think HDFC bank would require 15CB/15CA as per their internal procedures. However, you may argue that the source of NRO FD is from NRE and TDS on NRO FD already deducted. If they are not convinced, you would need to provide the documents that they need. Thanks.

  64. Malathi says:

    Hi!!
    One of my nri customer wishes to transfer funds from his son’s minor nro account to his son’s minor nre account..now in whose name form 15ca & form 15cb needs to be furnished..shuld that be guardian’s name / minirs name.. Pls clarify

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I would think that the name on the forms would be minors only. However, the signature would be of the father. I suggest you to please check with bank as they would ultimately transfer the funds. Thanks.

  65. laazi says:

    sir,
    will banks accept digitally signed 15CB certificates ?
    please help ASAP

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      There is no reason why not. However, I think you would need to put the seal of the CA firm. The 15CA can also be signed digitally. Thanks.

  66. Rich says:

    dear sir,

    I am doing this for the first time, i am moving to Australia permanently and I want to transfer 1.5 Lacs from my HDFC account to my newly opened NAB account in Australia.
    Please explain to me the procedure. thank you

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You are allowed to transfer. Please contact your HDFC bank for the procedures that you need to follow. Thanks.

  67. Sumesh says:

    Hi Jigar

    I recently got a green card in US and I plan to buy a house in USA. Below are few points that i needed your views on

    I plan to sell my current home in India that i had bought in 2006(before I came to US). I want to transfer the amount from the sales to US so that I can buy my first house here.

    1) How much Capital gain Tax would i have to pay? is it 20.6% or 22% ?
    2) Would I be required to pay this tax even if I reinvest the money in a house in USA?
    3) Can hiring a CA to do the 15CB/15CA be enough or is there any additional procedures that are required.
    4) How would it impact me in my US Tax declarations? What documents would i need to show to ensure i am not taxed again in US for the amount transferred and also avoid any IRS hassles.
    5) Is there any RBI limit set on the amount of money that I can transfer from the proceed of the house sale in India in a year OR can i transfer everything if proper documentation are prepared by CA & due taxes paid off.

    Regards
    Sumesh

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. 20.6% after indexation
      2. full. No deduction or exemption for acquiring house outside India.
      3. In addition, the buyer need to comply with TDS provisions as well and your CA can help for the same. CA may also help in liaison with bank for actual transfer in addition to 15CB/15CA, calculation of capital gain/tax and then file income tax return.
      4. You would need to declare the sale of property in your 1040. You may also need to file FBAR as well as Form 8938 with your 1040 to IRS.
      5. $1 million per financial year (April-March). Thanks.

  68. Umesh says:

    Dear Sir,
    Please help your suggestions.
    I am an NRI residing in US and have both NRE and NRO accounts with HSBC India.
    I am planning to sell my apartment in India which I had purchased back in 2006 before becoming a NRI. The deal is almost finalized and the Buyer will be depositing entire sum in to my NRO account after deducting the mandatory 1% TDS for transaction over Rs.50 lakh. Here are my questions.
    1. I plan to reinvest part of the money in to house/apt in India for which long term Capital gain tax would be attracted and rest of the money I want to remit back to US as I have to pay some long standing loans (personal loan). Do I still have to file 15ca and 15cb?
    2. Can I buy a home in US with the sale proceedings in India and remit this money without paying any tax as I am utilizing the money for buying a home? I am a first time home buyer in US.
    3. Last scenario, If I have to get all money back to US paying all capital gains tax, do I have to go through CA in India or can I do the filing online and pay the income tax dept online?

    Thank you in advance for looking at my comments.
    Regards.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. As you are an NRI, TDS of 1% does not apply to you. It is for persons who are residents. In your case TDS @ 20.6% on the capital gain would be applicable. Please ensure that you contact your residential status to buyer and also mention in the agreeement. It is your responsibility to communicate your residential status to buyer and it is his responsibility to deduct TDS at applicable rates.
      2. The buyer would want to deduct TDS @ 20.6% on the entire amount but you would need to convince him to deduct only on the capital gain amount.
      3. As sale of apartment is taxable in nature (capital gain), 15CB/15CA would be required for transferring funds from NRO to NRE or to USA.
      4. From this year, you would not be allowed any deduction from capital gain for buying a property outside India.
      5. I would suggest you contact your CA as he would be the best person to explaining #1 and #2 as well as issuing certificate 15CB, filing 15CA, liaison with bank for actual transfer to USA in #3 and filing tax return after the year end (after March 31, 2015) by July 31, 2015. If you do not have a CA, please contact us and we would be happy to help. Thanks.

      • Umesh says:

        Thank you very much for the reply and suggestions.
        Do you also have services for Tax filing in US?

        Regards.

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          We support US tax preparation and filing. We are not allowed and do not file US tax returns. Thanks.

  69. kameswaran says:

    One of my friends company has to transfer USD 3000 for the technical services provided by the UK company. Please advise whether form 15 CA/CB to be provided and also whether TDS has to be deducted. If so how can we deduct TDS on foregin company who has provided services outside india .

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Payment for technical fees would be taxable in nature and TDS would apply. And, 15CB would be required. The rate of TDS would depend on whether you are claiming DTAA benefit or not. If yes, TRC (Tax residency Certificate) of UK company would be required. Thanks.

      • kameswaran says:

        Thanks for the information. However since the amount to be transferred to Uk for the engineering services rendered by the UK company under DTTA benefit, what is the qunatum of TDS is to be deducted besides the Tax Residency Certificate requirement.

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          The TDS rate would depend on the India-UK Double Tax Avoidance Agreement (DTAA). Also, if you agreed for the net payment to the service provider, you may need to gross up the payment i.e. if $3000 is net payment that you promised and if rate of TDS is 20%, your gross payment would be $3750 and TDS of $750 (@20%) and net payment of $3000. Please check with your CA. He would review your agreement with the UK company and DTAA and would guide you better. Thanks.

  70. Mihir Zala says:

    My client has taken advance in EURO before 3 year and the same has been shown under adv. from customer” in balance sheet. Now my client has to repay this amount. I just want to know whether 15CA and 15CB required

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I am surprised that any company would pay advance and then forgets for 3 years. Anyway, if what you say is right, it may be covered by the specified list # 27, RBI code S1501 related to Refund or rebate or reduction in invoice value on account of exports. In that case, 15CB/15CA would not be required. Thanks.

  71. Venkatesha MK says:

    Dear Sir,
    I want know that, if we pay Labour Charges for Consultancy received from USA,
    Company which is our parent company.(Parent company is LLC and in India it is LLP)
    My question is
    1. if Parent company, is any relaxation in With holding tax rate?
    2. LLC is not having PE, NO PAN and No TRC so what is the tax rate?.
    3.Payment more than Rs2.5 Lakhs, is any permission required from RBI or any other regulating body.
    4 Is Service tax is applicable for this case.
    5 if any Expenses Reimbursement to LLC, is Taxable or Only Service tax.

    Please kindly let me know.
    MK
    9686088277

  72. Maria says:

    Dear Sir,

    whether there is TDS applicabiity for payments made for Domain purchase from a non resident in USA. Whether will it come under the scope of “import”??

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I don’t think domain purchase would come under import as you are not importing anything into India but buying a service. I suggest you consult your CA. Thanks.

  73. RASHESH PATEL says:

    Sir,
    we have to pay our client at UK for the first time. kindly guide that weather i have to proceed for 15CB first or 15CA first. which type of documents are required for obtaining 15CB from CA.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      The requirement of 15CB or TDS would depend on the nature of payment, whether taxable or not, under which head, whether covered by DTAA and other important details. Without any information, I am unable to properly explain the requirements. Please contact your CA. Thanks.

  74. Jakir Khale says:

    My client is an Individual. He wants to go to Maldives for Personal trip. He has to remitt USD 2500 for Hotel Accomodation to the Maldives Hotel. Is there and DTAA between India & Maldives. Should we witheld tax . If Yes at what rate? if exempt under DTAA which article number exempts it. Even if BTQ applies the bank wants 15CA & CB. Help me with article exempting in DTAA between India & Maldives.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Payment for Travel under Basic Travel Quota (BTQ) is exempt for TDS or withholding. No need for 15CB/15CA or check DTAA. Thanks.

  75. AD says:

    Dear Sir,
    One of my NRI friend earned a Long Term Capital Gain on shares and want to transfer the funds to his NRE A/c. Should he give bank both 15CA/15CB as receipt is tax exempt and should he mention the capital gain exempt section in form

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Any payment taxable in nature would require 15CB/15CA. As the payment is in the nature of long term capital gain, 15CB/15CA may be required. Please contact your bank and your CA. If it is not taxable, the basis of determination and calculation of taxable amount needs to be included in 15CB and 15CA. Thanks.

      • AD says:

        Thank you Sir for your reply. Sorry I missed your reply and reposted the query. Kindly ignore my recent query

        Kind Regards

  76. mahesh kumar says:

    my client is NRI and he sold the land in india and he has capital gain on that sale of land. whether he has to file both form Form 15CA and 15 CB? Please see.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Yes, payment to NRI for sale of land is in the nature of a taxable income under the head “income from capital gain” and 15CB/15CA would be required. Thanks.

  77. nidhi gupta says:

    i have to issue 15 cb for my client who is paying the fees for audit of factory located in india and the payment is to be made at hongkong . what is the tds rate to be deducted?
    2. article no under which paymnet to be made?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I think it will be covered under the any other payment and TDS at 30.9%. TDS rates can be found on the incometaxindia.gov.in. If you are claiming DTAA relief, please check the DTAA regulations and ensure that the payee needs has a TRC (Tax Residency Certificate). Thanks.

  78. i want to make payment under legel service to my lawer in foreign . is need to provide 15 cb to bank. because bank demanded 15 cb and my chartered told no need of submit 15 cb

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Ask your bank to convince your CA or ask your CA to convince the bank. The important part is that money is transferred. Thanks.

  79. ELROY RODRIGUES says:

    My client is an NRI who is having income in india and has been regularly filing his returns . He now wants to transfer funds from his NRE A/c to his bank account in New zealand. Because the remitter and remittee ar ethe same there is no TDS to be deducted. So while transferrring the funds , do i have to pay any taxes on the fnds being trasnferred? should i pay advance tax to be on the safe side. The assessee will be filing his returns next year as well. pls advice

    • ELROY RODRIGUES says:

      Also whether the re is a difference if funds are transferred from NRO a/c to his account in new zealand. he is regulalry filing his IT returns

      • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

        1. Same remitter and remittee does not mean no TDS. If any income is deposited in NRO on which TDS is not deducted e.g. interest, rent; it would be considered as a taxable transfer and NRI would have to pay tax or ask the payor of income to deduct TDS. Only after TDS is deducted or tax is paid, money can be transferred.
        2. The procedures, rules and requirments are the same whether you transfer to NRE or to New Zealand. Recommend to contact the bank for the exact procedures. Thanks.

        • ELROY RODRIGUES says:

          The amount credited in NRO A/c is mutual fund redemption which is long term and interest received on REC bonds, on which TDS is not deducted , but assessee has paid advance tax on the said interest. Is payment of advance tax sufficient in that case? as TDS is not applicable

          • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

            Bottomline, there should not be any outstanding tax. If you are confident that the tax paid is sufficient to pay his tax liabilities, it is okay. Thanks.

  80. Manish Verma says:

    Dear Mr. Patel,

    Thanks for a very useful and clear article. I have a question and wonder if you could guide me please.

    I had been remitting money from London (GBP) to Indian Rupees (INR) over the years into a domestic account with ICICI bank that I had before I left for London. The source of the money has been my single permanent job with a European company. All the money is totally white and all the taxes were deducted at the source.

    Since then, I got British passport and now live in India. Now, recently, I transferred the remitted money from Domestic to NRO account and then to NRE account. I have got the 15CB from CA as well and I am now trying to fill in the 15CA online form.

    1) Do I need to calculate the tax under the I.T. Act section in the 15CA part B, even though all the taxes were paid already in London?

    2) What is the relevant article of DTAA that would applicable in my case?

    3) Do you have an example form for such NRO to NRE transfers for the part B of 15CA? That would be useful. Like you mentioned, even the Bank staff are not aware of the exact details.

    4) Lastly, after submitting the 15CA, do I get a confirmation from IT department to say that the transaction was ok?

    Thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. If you live in India, you are considered as an Indian resident and are not allowed to maintain NRO/NRE account. You need to maintain Resident account only.
      2. If money is already in NRE, there is no requirement of certificate thereafter. 15CB/15CA is required before the transfer. Also, you may not require 15CB/15CA as the forms are required only for taxable transfer.
      3. For non-taxable transfer, the tax section does not apply and you do not need DTAA benefit.
      4. 15CA is very subjective i.e. based on the situation and circumstances and there is no example. Also, as mentioned, you may not need 15CB/15CA.
      5. 15CA is to be filed online and it is the acknowledgement AFTER you submit the form that you need to sign and give to bank for TAXABLE transfers only. Thanks.

  81. Ruchi Vyas says:

    Mr. Jigar,

    I want to pay consultancy fees in US$4400. Shall i deduct TDS and at what rate? Forms 15CA and 15CB is required or not?

  82. Mrs. Kochupurackal says:

    Hi Jigar,

    Can you confirm if we have got export business from a foreign client, can we pay commission to him, if yes, what is the percentage limit against the invoice value? do we have to cut tds?

    It will be only one time below inr 2.5l.

    My bankers have not asked for form 15ca or 15cb. Is it compulsory fill for any outward remittance.

    Please advise

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. The percentage of commission depends but preferably upto 10% of FOB value.
      2. The comission may not be taxable and TDS may not be deducted based on the recipient and your agreement.
      3. If bank do not ask for 15CB/15CA, it is okay. It is bank’s responsibility to remit funds only after making sure that tax, if any, has been deducted. Thanks.

  83. Vikash Goyal says:

    Dear Mr. Jigar,

    One of my client had taken a buyers credit from State Bank of India, London. Now it wants to remit the principal and interest to State Bank of India. Whether it needs to deduct witholding tax on the amounts. If yes/no under which provisions.

    Thanks in advance

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Your bank would know as they would have experienced such transactions earlier. You may not have to deduct TDS as the payment is made to Indian bank. However, you would need to check the constitution of the SBI, London. Usually, the banks are set up outside as branch and not subsidiary company as a result while it is located in London, tax treatment as if it is an Indian company may apply. However, check with your bank. Thanks.

  84. venkataraman says:

    if there is a difference in the amount mentioned in the form a5 ca 15 cb and actual remittance what is the position. Some time it is more due to interest accrued not taken in 15 ca and some times it is less.

    can anyone clarify

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      There can not be any difference between 15CB and 15CA as Chartered Accountant would issue the form 15CB and only on that basis Form 15CA is filed. In case of any difference, the lower amount may be remitted. However, it would depend on the bank and the bank may insist that both amounts be same. In that case, you may get another CA certificate or file 15CA. Thanks.

    • venkataraman says:

      Mr.Jigar

      You have not got my point correct. There is no difference between the amounts mentioned in Forms 15ca and 15 cb. The difference is in the amount remitted. 15 cb is issued for transfer to deposit amount without considering the accrued interest. Actual amount transferred includes interest upto the date of transfer resulting in a higher amount than what is mentioned in 15 ca 15 cb

      • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

        If the money is already remitted, it is gone. Don’t worry about it. If the remittance was higher than the 15CB/15CA, I would think it is a mistake of a bank. Thanks.

  85. Vivek Thakur says:

    Dear Sir,

    I am exporting Organic Food from India and have to pay commission to the broker. The commission is on the higher side around 20%-25% considering it is organic foods. Will it going to be a problem from the RBI side?

    Also, the commission that needs to be paid with be to a third party and they are not the one’s who are generating invoices.

    Thanks,
    Vivek

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Commission of 20-25% is excessive and may be a problem. I would recommend to pay commission of upto 10% only. Thanks.

  86. Mariya says:

    Hi.

    A friend of mine, Ashish lives in Australia. He owns a land here in india which will be developed by my co. What ever flats are sold that amount will be deposited into Ashish’s NRO Account. I want to know what will be the tax implications at the time of deposit of money into NRO A/c and also when money is trasferred from NRO to NRE.

    Also wanted to know if the individual buyers will have to apply for TAN in order to deduct TDS at the time of deposit into NRO

    Any help is truly appreciated.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. Everything will depend on the ownership structure, structure of the deal, agreement between you and your friend as well as the buyers.

      2. I would recommend you to talk to your CA or an expert in the field to understand the income tax and FEMA provisions and compliance requirements. Let us know if you need any help in this matter. Thanks.

  87. Shraddha says:

    Dear Sir,

    I wanted to pay USD 300 to Foreign country from our company current account as operating fees against vendor invoices.

    Do i need to take Form 15CA & 15 CB for making payment to vendor.

    Also advise the limit of Rs. 50,000/- to 2,50,00/- for outward remittance is includes Indian Vendor and Foreign Vendor for Financial Year 2014-15. Or else only limit is prescribed only for Foreign Vendor.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      For Import, you may not require 15CB/15CA. Also, the 50,000 per transaction/250,000 per year is for any person outside India. For Indian vendor, you would pay in Indian rupees. Thanks.

  88. sandeep says:

    Sir,

    We want to pay freight amount on materials to our one of affiliates, payment of material have already been done without 15CA/CB certificate since this is payment against goods, however if we pay freight on the same than also we required this certificates to be given to banks for remittance.

    Kindly advice on the same.

  89. Padma Krishnamurthi says:

    Sir,
    Thanks for your reply. When I contacted my HSBC Bank, they said ” … Form 15CA & CB not required for resident customer. It is mandate to submit the forms if remitting
    from a NRO account.” — Is this correct? I am a Canadian Citizen and
    OCI (overseas citizen of India) card holder. Only on this basis I was able to open
    my NRO account. I have already submitted all the required documents, including a
    separate Chartered Accountant Declaration certificate, for the Will money from my
    demised sister. What is the best option for this situation. Please explain.
    Your site is a great source of information for NRI’s like me.
    Thanks you very much.

  90. Nitin says:

    I am sending 650 GBP at Luton in UK towards charges for processing agent. Now whether TDS needs to be deducted on the same.
    I am also sending 11745 $ to Columbus in USA towards charges for field service. Now whether TDS needs to be deducted on the same.
    For both the cases limit of amount of Rs. 250000 (for filing details in Part A) cannot be predicted at this point. So will I need to deduct TDS and at what rate.
    Please advice and thanks in advance.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      The arrangement or agreement of the transaction needs to be looked in detail. Please contact your CA, who will know. Thanks.

  91. DEBASHIS NAYAK says:

    Whether 15 CB can be certfied by a practising cost accountant?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I don’t think so. It needs to be certified by a Chartered Accountant. Thanks.

  92. Padma Krishnamurthi says:

    I sent US dollar as deposit to open my NRO account at HSBC. Later I received
    some rupee amount as stated in my demised sister’s Will into this NRO account.
    TDS is being deducted from Interest earned on this a/c. Now I want to repatriate
    the total to my Canadian Bank. But HSBC still wants me to submit Forms 15CB and 15CA and Declaration certificate. Is this necessary now with 67/2013 notification?
    Is there any way around it?
    Please reply. Thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Banks are authorized by RBI to transfer the funds after verifying that tax, if any, have been paid for any bonafide purposes within limit without any prior approval from RBI. As per circular (income tax dept), 15CB/15CA are required only for taxable transfer. Now, the question is – who will decide whether transfer is taxable or not. So banks ask for CA certificate. You need to convince the bank that the amount is tax free or after tax in India and no 15CB/15CA is required and for that, you may give all the documents – money transfer trail from US, will of your sister, TDS certificates, as well as a self-declaration. A CA certificate may also be given (not in 15CB format). In short, the only way would be to convince the bank to transfer without 15CB/15CA OR change the bank. Thanks.

  93. Nirmal Shah says:

    Dear Mr. Jigar Patel

    I am the OCI Card holder. I am receiving Salary in India from which tax tas been deducted. I want to transfer surplus amount of Rs. 1000000/- received from my salary to my Overseas bank account for my personal expenses when i visited that country. Do i need to get CA Certificate in Form 15 CB? and also in Form 15CA in Part B, why should i required to put CA Details since from my salary income TDS already been deducted.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Before Bank remit the funds, Bank need to be convinced that Taxes, if any, have been paid. They reply on the CA certificate for the conviction. As the nature of payment is Salary, which is taxable, CA certificate in Form 15CB may be required. However, you may try to convince the abnk with TDS certificates that taxes have been deducted, it would be on bank whether they remit or not without 15CB. Bank may ask for a declaration and/or a certificate (not in Form 15CB) from you or your CA. Let me know if you can’t get the funds remitted abroad. Thanks.

      • Nirmal Shah says:

        Thanks for your reply.
        I think nature of income shuold not be the basis for issue of Form 15CB. There is no Place or option whether AMount remitted is tax paid or not.

  94. sumant says:

    I have just opened a investment holding company in Labuan(Malaysia).My income derived as director fees from the company as non resident is not taxable in Malaysia. What i want to know is what is the best way to get this money into India and is this income taxable in India considering the DTAA between India and Malaysia.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      The most important would be whether you are a resident, Not Ordinary resident or Not Resident of India. If you are a non-resident, any income outside India is not taxable in India. You are free to transfer money to India through normal banking channel and credit the same in your NRE/NRO/FCNR bank accounts. Thanks.

  95. Gaurav says:

    Sir
    Background – AD Bank are/were supposed to submit Form 15 CA & 15 CB to income tax department in hard copy and soft copy form.

    I want to know whether the procedure of sending hard copies to income tax department by AD Bank is being dispensed with.
    Is there any notification from Income Tax department for not submitting the hard copy to IT department.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I am not aware of any changes in reporting by Bank to Income Tax department. 15CA goes to Income Tax department first. Bank would send other documents. Thanks.

  96. Our Company is a Multi National Company having Share from Malaysian company for Rs. 21500000.00 Now our Indian Director is purchasing those Share from Malaysian Company in 99 US$.

    Who is the remittance in this case?
    and In Form 15CA what kind of transaction it will comes under. Long Term Capital Gain, Income from Investment or other if any.
    Is TDS is applicable on this amount? and if Yes than also tell me the rate of TDS.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Before transfer of shares, the valuation of shares to be carried out as per FEMA and the transaction reported to RBI. As the sale is not on exchange, STT would not apply and the long term capital gain would be taxable and TDS would apply. Valuation and determining price per share more important. Thanks.

  97. Vikas Verma says:

    Dear Sir,
    We are a software company in India and provide software development and consultancy services to a university in France. We receive a sum of around 1200 euros monthly. To maintain this contract we need to pay 350 euros monthly (30% of our income we receive monthly) as commissions to a local company there in France (no Indian link).
    We have to send this commissions regularly to them, so do we need form 15 CA and form 15 CB and whether the commissions are taxable?

    Thankx in advance for your valuable advice.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Assuming the french company has no PE in India and it may not be taxable. However, please contact your CA who will need to review the India-France DTAA in detail to evaluate the taxability of payment. Also, the sales commission of 30% is very high, which usually is 10%. Thanks.

  98. Sai krishna says:

    Please confirm to me,
    what are the Specified List for the above mentioned.
    Thanks.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      The specified list as included in the CBDT notification. Please check the blog 15CB/15CA revised again….at http://nareshco.com/blog/?p=909 for updated notification, related comments and my reply. Thanks.

  99. HANISH JUNEJA says:

    Mr. Jigar
    we have to make a payment to a company Outside India in HONGKONG . When i send the form 15CB to my ca. He demanded tax residency certificate before signing it. So plz confirm me whether tax residency certificate is mandatory to obtain fron foreign Company for signing form 15cb.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Tax residency certificate (TRC) is required only if you are claiming DTAA benefit. If you are not claiming any DTAA benefit, TRC may not be required. Thanks.

  100. Sanket says:

    I have purchased a house from nri and have deducted tds under sec 195 @ 20.6%. I am making the payment in inr in his nro account. Do i have to comply with 15ca and 15cb

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      As you have deducted TDS u/s. 195, you are all set and you do not have any responsibility. However, if the NRI wants to take the money out of India, you may help him by asking your CA issue 15CB to the NRI and for that, he would thank you a ton. The seller NRI would just file 15CA and be able to transfer the funds abroad. Thanks.

  101. Rienzie de Mel says:

    I reside in Sri Lanka and indent certain commodities from India to some of the buyers in Sri Lanka for which I receive commission payments from my principals in India. Each payment will be in excess of USD 700 and I have received Form 10 F and Residency Certificate to be perfected and returned to the principals to receive the commission payment without any deduction.

    Kindly advise if a copy of my Sri Lanka Passport is acceptable for this purpose and if I am not a tax payer in Sri Lanka, what will be the percentage the Indian authorities will deduct from my commission payment transfer ?

    Thanks and regards

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I have not read the DTAA between India and SriLanka so can’t comment further. However, please confirm if you have a PE in India or not. Also, whether you work as independent agent in Srilanka, or on behalf of Indian principals also whether exclusively. If you had been receiving commissions before without TDS, you may continue to do so. Please check with your Indian principal’s CA as he will be involved in issuing certificates, if any. Thanks.

  102. Asif Rahman says:

    Respected Team,
    i had transferred some funds back to india in my NRE account in india, then i took it out for family expense and purchase. since i did not needed that money any more,i invested them in banks deposit and post office . now i have deposited that money in my NRO account in india and would like to remit it back to new zealand. kindly advise how to do it. since the bank in india is asking for :
    1. Please provide us a chartered accountant certificate in 15CA AND 15CB that TDS has been deducted from the amount available in the account for making the remittance.
    2.Please provide us the purpose of remittance.

    Kindly Advise.

    regards
    Asif

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Please state the purpose of remittance why you need the money in NZ. If it is towards Family maintenance and savings, 15CB/15CA may not be required. Please review updated blog and related comments and my replies at http://nareshco.com/blog/?p=909. Thanks.

  103. priya says:

    Sir your blog is just to good, kindly update notification no.67/2013 instead of 2003….
    It is very informative blog.
    My query is, As per notification 67/2013 , there is no requirement of Form 15CA/CB while transfer of fund from NRO to NRE, but bank is denying transfer of fund from NRO to NRE without 15CA/CB…
    Is it good enough if affidavit is made by client itself about source of income, income earned during the year & tds deducted by bank on NRO Account?
    After such documentary evidence [affidavit by client] we can provide 15cb/15ca?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Thanks for your kind words. The documents listed would be good if you were a bank. As a CA, affidavit may not be enough and you may want to review and understand the transactions, bank statements, TDS certificates or (26AS), tax return, and other documents to verify the source and whether taxes have been paid or not. The question is what makes you comfortable about issuing the certificate. And, I leave on to you how you serve your clients. Thanks.

  104. ankit says:

    While transferring amount from NRO & NRE bank requires 15cb, what should be written in AMOUNT PAYABLE IN FOREIGN CURRENCY?
    Because both NRO & NRE are in INR only ….
    Please reply

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You also write the currency. If you write INR as foreign currenc, use amount in Rupees. Thanks.

  105. Sidharth Sahni says:

    Sir

    Though as per the new norms, NRIs are not required to obtain Form 15CA and Form 15Cb before repatriation of money outside India, the banks are still asking for the same without which are refusing to transfer money.

    Now, Point 8 (b) of Part B in Form 15CB asks for “Relevant section of the Act under which remittance is covered” What are we supposed to fill in this column?

    Also, do we require to disclose the source of repatriation and discuss its taxability in India anywhere in Form 15CB, like giving details of any it being exempted or tax already deposited etc.?

    Thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You need to convince the bank or Authorized dealer to transfer without 15CB/15CA if you are eligible under specified list and money that you are transferring is taxfree or after tax and may have to give all the information as well as documentary evidence required. You may have to give a declaration or a letter/certificate from your CA (not 15 CB). If the bank still insists or you are to give 15CB and determine that the transfer is not taxable. You just give an explanation why transfer is not taxable in Point 8 of 15CB. Thanks.

  106. Jignesh says:

    Is it mandatory to digitally sign the Form 15CA by the person required to sign the return of income as per Sec 140 of the Act? or the authorised signatory, like VO Finance / CFO can sign the form?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I think 15CA can be singed by the person required to sign return of income as per sec 140 of the Act OR by any person authorized by him in writing i.e. VO Finance/CFO may sign if the person required to sign the return of income so authorised him to sign on his behalf. Thanks.

  107. Jayesh says:

    Sir,
    I wanted to know what documents have to be checked while issuing 15CB for transfering the money from NRO to NRE account, assuming the said money is received from maturity of FD? What risk does it carry while issuing 15CB in this case?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      The document required would depend on how easy is the trail of money and more specifically what makes you comfortable about the source of funds and whether taxes have been paid. If you are satisfied about the compliance with rules and procedures, there is no risk. Thanks.

  108. Hardik Rathod says:

    Dear Sir,
    I want to make payment of Rs. 230000(Indian rupees) for exhibition in foreign in foreign currency.Does it required CA Certificate 15CB?
    I want to know there is any provision in Income tax or relevant DTAA for deduction of TDS while making payment to Non- resident for exhibition in foreign country(here Singapore).
    Please help me because bank asked for certificate 15CA.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      If bank asked for 15CB, they may not process payment without 15CB. Please contact your CA and he will help you with 15CB/15CA. Usually, TDS may not apply but your CA needs to verify before issuing the certificate. Thanks.

  109. SKR says:

    Dear Mr. Jigar,
    Suppose I open an NRO account with Rs 10,000 (which is non-taxable in India). Over a period of time I earn interest of (say) Rs 2000 (after TDS), and the balance becomes Rs 12,000. If I intend to remit Rs 1000, what would be the composition of of the remitted amount. i.e. would the Rs 1000 be considered interest only (thus requiring Form 15CA), or principal only, or split in the ratio 10:2 etc. Basically I am saying a typical savings account will contain “mixed” funds – how do I determine on what portion of a withdrawal amount that tax has been paid.
    Thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You can say it is all interest (current income), and the source can be easily verified and amount can be remitted abroad. Just contact your CA and he will take care of the same. Thanks.

  110. ATUL KIKANI says:

    DEAR SIR

    WE ARE REGULAR IMPORTERS AND WE ARE SENDING INVOICE PAYMENT OR
    ADVANCE PAYMENT TO OUR OVERSEAS BYUER FOR MATERIAL PAYMENT
    DOES IT APPLICABLE

    THANKS
    ATUL KIKANI

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Please note that this circular has been superseded and the updated rules and regulations can be checked at my blog “15CA/CB rules revised Again: 15CA/CB May NOT be required for NRO to NRE transfer”. Please review the comments by other users and my explanations for more info.

      To answer your question, the information in 15CB/15CA needs to be furnished for any taxable transfers not included in the specified list of latest circular. You will need to verify if the importer has a PE in India, review the DTAA between India and importer country and also other documents/information about the transaction. Please also check with your bank. Thanks.

  111. Hari says:

    Hi Sir

    I have question, about Source of Funds. Is there any restriction ?

    My mother has gifted me Rs. 40L in October 2013. I have put these in NRO account under Fixed Deposit. My Fixed deposit will mature in Feb last week. Can I transfer these fund 40L + interest after TDS ( bank deducts TDS at 30.9% for NRI ) to my NRE Account.
    What all documents/ Paper do I need.

    Regards

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. There is no restrictions on source of funds. In your case, the source of funds is Gift from your mother. The question may arise as to how your mother got Rs. 40 lakhs. If funds are after tax of hers, then no issue.
      2. Yes, you can transfer the 40L + interest after TDS to your NRE account.
      3. Please consult your CA for the documents/papers. Thanks.

  112. SKR says:

    Dear Mr Jigar,
    I understand in order to repatriate funds out of NRO account certain procedures e.g Fema Forms, Form 15CA/CB etc need to filed. My bank however has issued with a Global ATM (Debit) Card on my NRO account (I believe it is also issued on Resident savings account) which can be used for payment of purchase abraod or draw money in foreign currency from overseas ATM. Would you be able to tell me how is it possible in these cases of currecy conversion no Form 15CA/CB, Fema forms are required, or no information is requied to be submitted to the Tax authories. There is a daily withdrawal limit however, also the exchange rate may not be favourable and bank charges are levied – but is it possible to continue drawing small amounts of money using my bedit card abroad for over a period of time? Which regulates apply in these cases.Thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      The ATM card on NRO account would only be accessed within India. Please double check with your bank. I don’t think NRO ATM card of ANY BANK can be accessed outside India. The Resident savings MAY allow international withdrawal; however, as a NRI, you are not allowed to own any resident account. I would request you to re confirm with your bank about the international use of NRO ATM debit card. Thanks.

  113. SKR says:

    Mr Jigar,
    I got a written clarification from my bank. They have confirmed that both 15CA and 15CB required. The gist of the response is that there are various bodies who have authority to regulate foreign exchange (CBDT, FEMA, RBI etc)- and if their rules and guidelines do not concur – then the most restrictive will apply. Though CBDT allows remittance without requiring 15CA or 15CB – according to provisions of FEMA, 1999, Form 15CA and Form 15CB are required to repatriate funds from NRO A/c to NRE A/c or Overseas A/c. Unless FEMA is amended banks will continue requesting 15CA and 15CB, despite new CBDT guidelines. I also asked if it is possible to receive interest from NRO a/c directly into an NRE account (i.e. without paying into NRO savings a/c first) because the bank deducts TDS before paying. This is also not possible because though FEMA allows this route, the new CBDT rule 37BB requires any payment chargeable to tax under IT Act 1961 shall be required to furnish details in the prescribed form – i.e. 15CA and 15CB.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FEMA regulates NRI investments in India and whether NRI can open/ maintain NRO, NRE and FCNR accounts and acceptable credits, debits, joint holders, limit of transfer/remittances etc. The Central Board of Direct Taxes that includes Income Tax department regulates the taxation aspect of those investments. This is really important. It is quite possible to misconstrued one requirement with another as procedures and definition in both Acts may differ.

      As per CBDT Circular, 15CB/CA may not be required for the nature of transfers mentioned in the specified list. You first need to determine the nature or purpose of fund transfer (in your case NRO FD interest after TDS), and if it is included in the Specified list, 15CB/CA may not be required. For any other transfer, you will need to furnish information in 15CB/15CA. Thanks.

      • CA KETAN RAMBHIYA says:

        Dear Jigar,

        whether 15CA & CB required for transfer of NRO funds to NRE, which earlier was transferred from NRE to NRO to earn higher rate of interest in NRO account prevailing then.

        if yes in 15CB & CA both remitter and beneficiary will be same. how to fill online then?

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          If there is a direct trail of funds and TDS on NRO deducted, 15CB/15CA may not be required. Transfer can be made only based on the declaration/request by the client. Thanks.

  114. Krish says:

    All these are only on paper. In practice, banks still insist for 15CB even if the money is transferred from my own NRO account to my Own Foreign Account for Family maintenance (remittance by non-residents towards family maintenance and savings ).

    My recent experience with HDFC Bank says so. My advise to all will be to Avoid any type of Investment in India

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      As per the notification 67 of Sep 2, 2013, “Remittance by non-residents towards family maintenance and savings” has been included in the specified list Sl. No. 21 and RBI purpose code S1301. The Explanation 2 specifically clarifies that no information is required to be furnished for nature of payments under the Specified List. If you can educate/explain this to the bank, they should be able to remit the funds to your home/resident country.

      I am really sorry for your not so great experience with Indian bank. I agree that there is lack of education/ training of competent staff at certain bank or branch that are dedicated for NRIs and are well aware of the RBI rules, regulations and notifications. However, I would strongly say that your one experience with one bank out of multiple banks in India’s and at one branch out of thousands of branches and that too with 1-2 employees of that branch should not be the determinant factor or affect your long term investments in India. India offers amazing returns in fixed deposits, debt and equity investments, way better than your home country and you should not miss this opportunity. The only thing that you need is a competent advisor who can guide and help you to reach your goals.

      • akanksha says:

        Are you aware of ANY bank in India that is now honoring the 67/2013 notification. I have tried HDFC, ICICI, HSBC and all are still asking for 15ca/15CB – no matter what the purpose of transfer is.

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          Banks do honor the updated notification. It depends on how you approach/explain, how much you insist, your NRO funding sources, whether tax paid or not, your CA, logic/explanation, etc. Thanks.

  115. pranjali thite says:

    Thanks Jigar for well explained provisions regarding 15CA & 15CB. My question since reimbursement of expenses is not taxable, still 15CA and 15CB is to be submitted on remittance of such reimbursement? Also the BSR code of the overseas branch of a bank or the branch where the assessee is having account and payment from that account will be made is written?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Please contact the bank and your CA and refer to DTAA agreement between India and other contry to determine if 15CB/CA required or not. Also, BSR code of the bank through which payment is processed should be mentioned. Thanks.

  116. chakravarthi says:

    Dear Sir
    we have to charges purpose code in firc )foreign income remittance certificate,how to approach the bank.

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