Repatriation of own funds by an NRI

We get lot of queries from our NRI clients that what is the process they need to follow if they want to transfer their own funds residing in Indian bank accounts to their own NRE account or bank accounts in the country where they are residing.

Rather than sharing what is written in law and I am sharing the practical aspect on this.

Points to be keep in mind while repatriating the money or doing outward remittance from India:

1. NRIs cannot hold resident accounts.
2. If NRIs want to remit their own money out of India then their money should be in an NRO account.
3. If due to negligence NRI is still holding resident account. He should close it immediately and open an NRO account
4. First of all, contact your bank branch to know the process of repatriation.
5. Or visit your bank website as this process can be completed online as well.
6. Check what documents are applicable in your case.
7. There is no need of physical presence to complete the process.
8. Process can be complete by sending the required documents through courier, email or uploading them on bank’s portal.
9. NRI can transfer funds to their NRE account or directly to foreign bank accounts.
10. Interest on NRE Savings/FDs is exempt in India while interest on NRO Savings/FDs are taxable in India.
11. NRI shall also check the taxability of NRE funds or funds they are taking out of India in the country where they are residing. There are chances that transfer of these funds is taxable in the country where they are residing.
12. When NRI approach their bank in India for repatriation, mostly banks ask to submit 15cb certificate, Form 15ca and Form A-2 along with source of fund proof.
13. 15cb is a CA certificate in which CA certifies that income tax is duly paid on income earned in India.
14. 15ca is a declaration by remitter about the foreign remittance made outside India.
15. 15cb is digitally signed by CA while 15ca is e-verified by remitter
16. As per rule there are conditions in which bank shall ask for 15cb to NRIs but practically banks are asking 15cb in all cases as it helps them to keep a better check on compliance.
17. To complete the process, NRIs should have Pan number and he should have created online income tax account.
18. Also, to let CA(Chartered Accountant) issue 15cb certificate, NRI should add him as a CA and assign 15cb form by login to his online income tax account.
19. When NRI wants to repatriate huge amount then its better to contact bank branch directly.
20. Bank branch may ask to courier the documents directly to them to process the repatriation request.
21. To issue 15cb, CA will ask to provide few details/documents to him so that he can check whether 15cb certificate can be issued or not.
22. In case, CA found that there is some pending compliance, outstanding demand or tax liability, he will ask NRI client to clear or resolve all issues before issuing 15cb certificate

Now let’s discuss theory part of 15ca and 15cb

Form – 15ca

1. Form 15CA is adeclaration form which is to be filed when a person making  the foreign remittance  outside India. This form can be submitted in both online and offline modes through income tax efiling portal.
2. Remitter should be registered on the e-Filing portal with valid user ID and password
3. This form enables the users to file Information to be furnished for payments to a non-resident or when a person is repatriating his own money.  In some cases, a Certificate from Chartered Accountant in form 15CB is required for uploading the Form 15CA online.
4. Any category of taxpayer, Authorized Signatory and Representative Assessee can use Form 15CA to furnish information regarding payment made to a Non-Resident, not being a Company, or to a Foreign Company.
5. Form 15CA has four sections:

Part A – If remittance or the aggregate of such remittances is chargeable to tax and does not exceed 5 lakh rupees during the financial year

Part B – If remittance is chargeable to tax and the remittance or the aggregate of such remittances, exceeds 5 lakh rupees during the financial year and an order / certificate u/s 195(2) / 195(3) / 197 has been obtained from the AO

Part C – If remittance is chargeable to tax and the remittance or the aggregate of such remittances, exceeds 5 lakh rupees during the financial year and a certificate in Form No. 15CB from an accountant has been obtained

Part D – If remittance is not chargeable to tax

6) In Part A, enter the details of remitter, remittee and the remittance details. Part A also includes the Verification from the person submitting Form 15CA.

In Part B, enter the details on remitter, remittee, AO Order details and the remittance details. Part B also includes the Verification from the person submitting Form 15CA.

7) You can fill and submit Form 15CA through Online Mode (through e-Filing portal) or through Offline Mode using Offline Utility

8) Steps to Submit Form 15CA – Part A / B / D (Online Mode)

a) Log in to the e-Filing portal using your user ID and password.

b) click e-File > Income Tax Forms > File Income Tax Forms.

c) On the File Income Tax Forms page, select the Form 15CA.

d) On the Instructions page, click Let’s Get Started.

e) On click of Let’s Get Started, Form 15CA is displayed.

f) Select the applicable section and fill all the required details.

g) Click Proceed.

h) On the Preview page, verify the details and click Proceed to e-verify.

i) Click Yes to submit.

j) On clicking Yes, you will be taken to the e-verify page.

k) There are various options available to e-verify the form 15ca like Aadhar otp, DSC, evc through bank account or through netbanking.

l) Select which is feasible in your case

m) After successful e-Verification, a message is displayed along with a Transaction ID and Acknowledgement Number for future reference. You will also receive a confirmation message on your email ID and mobile number registered with the e-Filing portal.

9) Steps to fill Form 15CA – Part C:

a) Choose Part C of the form.

b) In case, you haven’t added a CA, select a CA to assign the form.

c) When you have successfully assigned the form, a message will be displayed with a Transaction ID. An email confirming successful assigning of your form is sent to your and the CAs email registered and a message on your registered mobile number with the e-Filing portal.

d) Once the CA has submitted Form 15CB, you can either Accept or Reject Form 15CA and click Submit.

e) In case you reject the form, you will have to provide a reason in the textbox.

f) In case you accept the form, you will be required to enter the remaining details.

g) After accepting the form, you will be taken to the e-verify page. You can verify the Form using DSC or EVC.

h) After successful e-Verification, a success message is displayed along with a Transaction ID and Acknowledgment Numberfor future reference. You will also receive a confirmation message on the email ID registered on the e-Filing portal.

15cb

1. Form 15CB should be filed when payment to non-resident is chargeable to tax under the Income tax Act and an aggregate payment is more than 5 lakh
2. Form 15CB shall be filed when single payment does not exceeds Rs. 5 lakhs but aggregate payment during the F.Y would exceeds Rs. 5 lakhs.
3. Negative list of payment for which no form 15ca/15cb required: