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

We provide specialized assistance for NRIs, OCIs, and PIOs in repatriating funds from an NRO account to an NRE account or an overseas bank account. Banks require Forms 15CA and 15CB for such remittances, and these forms must be filed online with the Income Tax Department. Our team supports clients in preparing and submitting both forms and, when needed, coordinates directly with banks to ensure a smooth repatriation process. Our online services are available across all major cities in India, including Delhi NCR, Mumbai, Bengaluru, Chennai, Kolkata, Hyderabad, Gurgaon, Noida, Kochi, Punjab, Kerala, UP, Chandigarh, and more.

Background

With increasing globalization, cross-border financial movements have become routine, especially when funds are transferred from India to overseas destinations. For NRIs and other non-residents, a common requirement is transferring money from an NRO account to an NRE or foreign bank account. These transactions fall under specific compliance rules prescribed by the Income Tax Act and RBI regulations.

Under Indian tax laws, outward payments generally fall into two categories:

1. Repatriation of personal funds by NRIs, OCIs, or PIOs from their NRO bank account to an NRE or foreign account.
2. Payments from India to non-residents—such as NRIs, foreign citizens, foreign companies, OCIs, or PIOs—where the remittance includes an income component (for example, royalty, consultancy fees, or business-related payments).

In both situations, the submission of Form 15CA and Form 15CB is required under Section 195 of the Income Tax Act.

Why Forms 15CA and 15CB Are Required

• For NRI repatriation (Category 1):
  TDS does not apply because the funds belong to the NRI and are being transferred from their own NRO account. However, banks still insist on Form 15CA and 15CB, making them compulsory for processing the request. Thus, NRIs typically consult a Chartered Accountant to obtain these forms.
• For payments to non-residents (Category 2):
  When the remittance includes taxable income, the Indian resident making the payment must deduct and deposit TDS and file both Form 15CA and Form 15CB. In such cases, CA assistance is essential for accurate preparation and submission of these forms.

Remittance / Repatriation of Money by NRI/OCI – From NRO Account to NRE or Foreign Bank Account

Remitting money from an Indian NRO Bank Account to an NRE or foreign bank account is a common and frequent requirement for NRIs, OCIs, and PIOs. Funds often accumulate in their NRO accounts, and when they need money abroad or want to manage wealth efficiently, they initiate repatriation.

Why NRIs/OCIs Accumulate Money in NRO Accounts?

NRIs usually maintain their savings or fixed deposits in an NRO account. These funds may originate from:

• Foreign income transferred from their overseas bank account.
• Income earned in India, such as rental income, interest income, dividends, etc.
• Sale of assets in India (property, mutual funds, shares, etc.).
• Gifts received from close relatives residing in India.

Over time, this income remains parked in the NRO account, and NRIs may require these funds abroad — either for personal use or for reinvestment outside India.

Why NRIs Transfer Money from NRO to NRE?

Many NRIs prefer transferring funds from NRO to NRE because:

• NRE accounts offer tax-free interest income in India.
• NRE funds are fully repatriable without restrictions.
• It allows maintaining wealth outside India without ongoing Indian tax exposure.
• It becomes easier to remit from NRE to any foreign account without additional compliance.

Documentation Requirement for Remittance

When NRIs request their bank to remit funds from an NRO account to an NRE or foreign account, the bank requires some standard documentation. The two most important documents are:

• Form 15CA – A self-declaration of remittance.
• Form 15CB – A certificate issued by a Chartered Accountant confirming the taxability status of the remittance.

Even though TDS is not applicable (because the remittance is from your own NRO account to your own NRE/foreign account), banks still require Form 15CA/15CB as part of FEMA and income-tax compliance.

Payment to Non-Residents and 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 taxable payment made to a Non-Resident. This covers payments made to NRIs, foreign companies, PIOs, OCIs, and foreign citizens residing outside India.
In short, whenever a resident pays any sum to a non-resident that contains an income component, TDS must be deducted before making the payment.

Key Points About Section 195

• This provision applies when the payer and payee are two different persons (unlike NRI’s own remittance of funds from NRO to NRE).
• Here, TDS is mandatory as it is a payment of income to a non-resident.
• TDS is deducted at the “rates in force”, which means the highest applicable rate under the Income Tax Act for that type of income.
  
  • Example: For long-term capital gains on sale of property, TDS is 20% + surcharge + cess.
• The rate may be reduced by benefits available under a Double Tax Avoidance Agreement (DTAA).
  
  • For many countries, Interest income or Fees for Technical Services are taxable at concessional rates of 10% or 15%.
• Before remittance, Form 15CA (declaration) and Form 15CB (CA certificate) must be submitted online.

Lower or Nil TDS Option

TDS under Section 195 can be reduced or entirely avoided if:

• The payer or payee applies to the Jurisdictional Assessing Officer under Section 195(2) or Section 197.
• After examining income details, the officer may issue a Lower TDS Certificate or Nil TDS Certificate.
• Once the certificate is issued, the payer can deduct TDS only at the approved rate.

RBI Regulations: Repatriation by NRIs/PIOs – One Million Dollar Scheme

Under FEMA and RBI guidelines:

• NRIs and PIOs can repatriate up to USD 1 million per financial year from their NRO account.
• No RBI approval is required for remitting money up to this limit.
• For remittances exceeding USD 1 million, prior RBI approval is mandatory.
• The limit is calculated:
  
  • Per person, and
  • Per financial year.

Basic Information About Form 15CA and Form 15CB

Form 15CB – Chartered Accountant Certificate

• Issued by a CA, certifying the nature of remittance, taxability, rate of TDS, and compliance with income tax laws.
• The CA verifies:
  
  • Source of funds
  • Nature of income
  • Whether tax has been paid or not
• Prepared online and submitted through the Income Tax portal.

Form 15CA – Declaration by Remitter

• A self-declaration form filled by the remitter, based on the CA’s Form 15CB.
• Submitted online through the Income Tax portal.

Submission & Acknowledgment

• Once Form 15CB and Form 15CA are submitted online, an acknowledgment receipt is generated.
• This acknowledgment must be shared with the bank to process the remittance.

UDIN Requirement

• Every Form 15CB issued by a CA must contain a Unique Document Identification Number (UDIN) generated on the ICAI portal.
• Banks can verify the UDIN online to confirm the authenticity of the CA certificate.

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

To prepare Form 15CA and Form 15CB, the following details are needed:

• Remitter Information: Name, address, and related personal details.
• Beneficiary Information: Name, address, country of residence, and currency details.
• Bank Information: Details of the remitting bank, branch information, BSR Code, etc.
• Remittance Amount: The amount to be transferred in both INR and foreign currency.
• Date of Remittance: The proposed date on which the remittance will be executed.
• Purpose/Nature of Remittance: Reason and category under which the payment is being made.
• TDS Information: Deduction details, if TDS applies to the remittance.
• DTAA Information: Applicable Double Taxation Avoidance Agreement benefits, if any.
• RBI Purpose Code: Code relevant to the specific type of remittance.
• Reasons for Non-Deduction of Tax: For example, transfers made by NRIs from an NRO account to their own NRE or foreign bank account.

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Timeline for Filing Form 15CA and Form 15CB for NRI/OCI Remittances

• The verification, preparation, and filing of Form 15CA and Form 15CB usually take 1–3 days.
• After filing, the acknowledgment receipts of both forms can be submitted to the bank along with the remittance request form.
• Once the bank receives these acknowledgments, the remittance is generally processed immediately.