NRI / OCI / NRO Account Money Repatriation – Form 15CA & 15CB Services by Chartered Accountants

Professional assistance for NRIs, OCIs, and PIOs in repatriating funds from NRO bank accounts to overseas accounts or NRE accounts, including the preparation and filing of Form 15CA and Form 15CB. These forms must be submitted online with the Income Tax Department for remittances from India to non-residents. Our Chartered Accountant online consultancy and certification services support clients across major Indian cities such as Delhi NCR, Mumbai, Bengaluru, Chennai, Kolkata, Gurugram, Hyderabad, Kochi, Noida, Kerala, Punjab, Uttar Pradesh, Dehradun, Chandigarh, and other regions. We also help coordinate with banks to ensure smooth processing of foreign remittances.

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Background

With increasing global financial movement, transferring funds outside India has become common, especially when NRIs and other non-residents move money from NRO accounts to NRE or foreign bank accounts. These remittances are governed by both Income Tax and RBI regulations. Under Income Tax rules, remittances generally fall into two categories:

Transfer from an NRO account by NRIs/PIOs/OCIs to an NRE or foreign bank account.
Payments from India to non-residents (NRIs, foreign companies, OCIs, PIOs, foreign nationals) such as consultancy fees, royalty, or other income-related payments.

In both scenarios, compliance requires filing Form 15CA and Form 15CB, which are forms mandated under Section 195 of the Income Tax Act.

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Requirement of Form 15CA & 15CB

For the first category (NRI repatriation from NRO account):
TDS is not applicable since the funds already belong to the NRI. However, banks insist on Form 15CA and Form 15CB before allowing the transfer. NRIs therefore engage a Chartered Accountant to prepare and upload these forms.

For the second category (payment to non-residents):
When a taxable portion exists in the payment, TDS must be deducted and deposited before the remittance. Filing Form 15CA and Form 15CB is mandatory, and a Chartered Accountant handles the certification and filing process. The responsibility lies with the Indian resident making the payment.

REMITTANCE / REPATRIATION OF FUNDS BY NRI / OCI – FROM NRO ACCOUNT TO NRE OR FOREIGN BANK ACCOUNT

Transferring money from an NRO account in India to an NRE account or a bank account abroad is a regular requirement for NRIs, OCIs, and PIOs. Funds often accumulate in their NRO accounts, and they choose to send this money overseas or to their NRE account as needed.

NRIs, OCIs, and PIOs generally hold savings or fixed deposits in their NRO accounts. These balances may include funds sent from abroad or income generated within India, such as interest or rental income.
In many situations, they also receive funds in their NRO account from the sale of property, mutual funds, or as a gift from close relatives in India.

Whenever money builds up in the NRO account and is required overseas, they opt to repatriate it to a foreign bank account. Additionally, some NRIs transfer funds from NRO to NRE accounts to avoid Indian tax exposure on future earnings and to have easier access to their funds abroad, since transferring money from NRE to an overseas account is simple and hassle-free.

However, when NRIs initiate a transfer from an NRO account to an NRE or foreign bank account, Indian banks request specific documentation. The key documents required include Form 15CA and Form 15CB.

Since the transfer involves moving the NRI’s own money from one of their accounts to another, TDS is not applicable on such remittances.

PAYMENTS TO NON-RESIDENTS & TDS UNDER SECTION 195 OF THE INCOME TAX ACT

Under Section 195 of the Income Tax Act, tax must be deducted at source (TDS) on any payment that contains an income component when it is made to a Non-Resident — including NRIs, OCIs, PIOs, foreign companies, and foreign nationals. Simply put, whenever a resident or another person makes a payment to a Non-Resident that is taxable in India, TDS must be withheld.

This requirement under Section 195 is distinct from an NRI transferring their own funds (such as NRO to NRE or to an overseas account). In payments covered by Section 195, the payer and the recipient are two separate parties, and TDS becomes applicable.

Key points under Section 195:

• The withholding tax rate depends on the rates in force, meaning the highest applicable rate on the type of income being paid.
  Example: Payments for purchase of long-term immovable property from a Non-Resident attract 20% TDS plus surcharge and cess.
• Relief may be available under the Double Tax Avoidance Agreement (DTAA) or specific concessional tax provisions in the Income Tax Act.
  For example, DTAA rates for Interest or Fees for Technical Services are often 10% or 15%.
• Form 15CA (online declaration) and Form 15CB (CA Certificate, where applicable) are required to be submitted for such foreign remittances.
• A lower TDS or nil TDS rate can be applied if an application is made under Section 195 or 197 to the Jurisdictional Assessing Officer. Once the officer issues a certificate permitting reduced or zero withholding, the payer deducts TDS accordingly before making the payment to the Non-Resident.

RBI Regulations for Repatriation by NRIs & PIOs — One Million Dollar Scheme

The Reserve Bank of India (RBI) permits Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) to remit funds overseas up to USD 1 million per financial year under the One Million Dollar Scheme.

Key highlights:

• Up to USD 1,000,000 can be repatriated per financial year without requiring prior approval from RBI.
• Any remittance exceeding this limit will require RBI’s prior permission.
• The limit is applied individually per person, not per account or per transaction.
• The allowance resets every financial year, enabling fresh eligibility up to USD 1 million.

This scheme generally covers remittances from:

• Sale proceeds of assets in India,
• Inherited property,
• Funds from NRO accounts, etc., subject to documentation and tax compliance.

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Forms 15CA & 15CB — Key Compliance Requirements

When funds are being transferred outside India, especially from NRO accounts, Form 15CA and Form 15CB are generally required to ensure Indian taxes are duly addressed.

What is Form 15CB?

• A certificate issued by a Chartered Accountant (CA).
• Confirms the nature of remittance, taxability, and actual tax paid/payable in India.
• Prepared and submitted online via the Income Tax portal.

What is Form 15CA?

• An online declaration submitted by the remitter (payer).
• Prepared based on details from Form 15CB.

Process for Submission

1. CA verifies income source and tax compliance in India.
2. CA prepares and uploads Form 15CB online with all necessary financial & tax details.
3. Based on Form 15CB, Form 15CA is also submitted online.
4. Upon submission of both forms, an acknowledgment receipt is generated.
5. This acknowledgment is then shared with the bank, which processes the outward remittance.

Additionally, the CA issues a UDIN (Unique Document Identification Number) through the ICAI portal. Banks can validate the authenticity of this certificate online.

Form 15CA & Form 15CB – Information Required for Preparation

To prepare Form 15CA and Form 15CB, the following details and documents are typically required:

Remitter Information
– Full Name, Address, Email, Contact Number, Residential Status, PAN

Beneficiary Information
– Name, Address, Country of Residence, Bank Account Details, SWIFT Code, Currency of Remittance

Bank & Transaction Details
– Remitting Bank Name, Branch, BSR Code, Account Number
– Amount of Remittance (both in INR & Foreign Currency)
– Proposed Date of Remittance
– Purpose & nature of the remittance (as per RBI purpose codes)

Tax Compliance Details
– TDS applicability and withholding details (if any)
– DTAA applicability & relevant treaty article (if relief is claimed)
– If tax is not deducted, reasons must be provided
(Example: Remittance of own funds by NRI from NRO to NRE/Overseas bank account)

RBI Regulation Details
– Purpose Code for remittance & compliance status under FEMA/RBI rules

A CA uses this information to confirm the tax status and prepare both forms correctly.

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Timeline for Filing Forms & Completing the Remittance

Stage	Activity	Estimated Time
Step 1	Verification of documents & source of funds	1–3 days
Step 2	Preparation & online filing of Form 15CB & Form 15CA	Same day after verification
Step 3	Submission of acknowledgements to bank	Immediately after filing
Step 4	Bank processes the outward remittance	Usually same day (depending on bank policies)

Once the bank receives the 15CA/CB acknowledgements and remittance request, the transaction is generally processed swiftly.

Disclaimer: The content on this website is for informational purposes only and does not constitute legal, financial, or professional advice. Please consult qualified experts before acting on any information. K M GATECHA & CO LLP accepts no liability for errors, omissions, or outcomes from the use of this content. This site is not an advertisement or solicitation.