Transfer of NRI funds from India to abroad

Ans. Remittance of funds held in India by Non-residents to outside India is popularly termed as “Repatriation”.

Ans.

Sr. No
(A)
What can be repatriated
(B)
Limit for repatriation
(C)
i) Current income like interest, rent, dividend distribution from any type of Mutual Funds and Shares and securities, profits of business as partner/ proprietor No limit
ii) Capital funds held in NRO a/c from sale proceeds of investment in Mutual Funds, Shares, Immovable property, including inheritance and bank balances USD 1 million per Financial Year
iii) a) Proceeds received on sale of immovable property, acquired earlier in foreign exchange.
b) Sale proceeds are more than amount paid in foreign exchange for acquisition of immovable property
Amount paid for acquisition of immovable property or repayment of housing loans through foreign inward remittance or funds held in FCNR a/c or NRE a/c is permitted to be freely repatriated. Such excess amount is permitted to be repatriated under (ii) above i.e. under USD 1 million per financial year.

Ans. Yes. One may have to apply to RBI for special permission to repatriate above USD 1 million. RBI may grant permission for medical purpose, education, home purchase or similar requirements at their discretion.

Ans. He can freely repatriate USD equivalent to the inward remittance to acquire the property (being Rs. 8 Crores in the present case) and balance amount within the yearly limit of USD 1 million can also be repatriated.

Ans.

NRI is typically required to submit following documents to AD Bank for remittance of funds outside India or NRE a/c:
1. Form 15CA – Self Declaration by remitter of funds (NRI)
2. Form 15CB – Chartered Accountant’s Certificate for certifying the appropriateness of taxes deducted / paid
3. FEMA Declaration and Transfer Request
4. Documentary proof of sources of funds and payment of applicable taxe
5. Any other documentary proof requested by AD Bank

Ans.

1. Form 15CA – Self Declaration by remitter of funds (NRI)
2. Form 15CB – Chartered Accountant’s Certificate for certifying the appropriateness of taxes deducted / paid
3. Form A2 and Outward Remittance Form
4. Documentary proof of sources of funds and payment of applicable taxes
5. Any other documentary proof requested by the AD Bank

Ans.

Form 15CB:

It is a certificate issued by a Chartered Accountant. A Chartered Accountant shall verify that due taxes have been paid on the amount intended to be repatriated and shall subsequently issue Form 15CB.

Form 15CA:

On the basis of Form 15CB, Form 15CA is required to be filled online on the income tax e-filing site (https://incometaxindiaefiling.gov.in/). NRI is required to register himself/herself on the income tax website for the said purpose.

The filled Form 15CA generated from the website shall be printed and signed by NRI and submitted along with Form 15CB and other documents to AD Bank from where the remittance is being made. Alternatively, Form 15CA can be electronically signed through Digital Signature Certificate (DSC) of the remitter (NRI).

Ans. NRE a/c balances are freely repatriable without any limit.

Ans. NRI may approach his AD Bank where he holds NRE a/c to make an outward remittance. This can be usually also done through netbanking (online).

Ans. Mandate holder in NRE a/c can initiate an outward remittance; however, it shall be ensured that the beneficiary of the remittance is the a/c holder.

Recent Posts