REMITTANCES BY NON-RESIDENTS
Remittances from NRE Accounts
NRE account balances are freely repatriable. There is no limit specified for outward remittances from such accounts. A declaration and request letter will have to be submitted to the Authorised Dealer (Bank) for such remittance.
Remittances from NRO Accounts
For making an outward remittance from NRO account, in addition to the Request letter specifying the necessary details, the non-resident will have to furnish a Certificate from a Chartered Accountant in Form 15CB and a declaration u/s 195 in Form 15CA has to be furnished.
Subject to the limitation of USD 1,000,000, the non-resident can repatriate his current income for the current financial year. Current year is the financial year in which the remittance is sought to be made. Balances in the NRO account arising out of capital receipts can also be repatriated up to the above limit.
The proceeds of sale of property can be repatriated out of NRO account. The property sale deed and purchase deed should be documented and copies submitted to the authorised dealer. If the property was acquired as a gift / inheritance then gift deed or Will / Succession certificate / Certificate of probate / Legal Heir certificate for the deed should be documented and copies will have to be submitted to the authorised dealer.
The amount sought to be repatriated should not exceed the sales proceeds and should be within the limit of USD 1,000,000 per financial year.
Remittance of Current income
Remittance outside India of current income like rent, dividend, pension, interest, etc. of NRIs who do not maintain an NRO account in India based on an appropriate certification by a Chartered Accountant, in Form 15CB certifying that the amount proposed to be remitted is eligible for remittance and that applicable taxes have been paid / provided for.
Remittance of assets by a foreign national of non-Indian origin
A foreign national of non-Indian origin who has retired from an employment in India or who has inherited assets from a person resident in India or who is a widow of an Indian citizen who was resident in India, may remit an amount not exceeding USD 1,000,000, per financial year (April-March), subject to the satisfaction of the remitter bank, on production of documentary evidence in support of acquisition / inheritance of assets and prescribed information.
Remittance of assets by NRI / PIO
A Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) may remit an amount up to USD 1 million, per financial year, out of the balances held in his Non- Resident (Ordinary) Rupee (NRO) account / sale proceeds of assets (inclusive of assets acquired by way of inheritance or settlement), for all bonafide purposes, subject to the satisfaction of the remitter bank and in the formats prescribed by the Central Board of Direct Taxes, Ministry of Finance, Government of India. Such investment in immovable property etc. do not have any lock-in-period.
In respect of remittance of sale proceeds of assets acquired by way of inheritance or legacy or settlement for which there is no lock-in period, NRI / PIO may submit to the remitter bank documentary evidence in support of inheritance or legacy of assets, an undertaking by the remitter and certificate by a Chartered Accountant in Form 15CB.
Repatriation of sale proceeds of residential property purchased by NRIs / PIO out of foreign exchange
Repatriation of sale proceeds of residential property purchased by NRI / PIO is permitted to the extent of the amount paid for acquisition of immovable property in foreign exchange received through banking channels. The facility is restricted to not more than two such properties. The balance amount can be credited to the NRO account and can be remitted under USD 1 million facility.
NRI’s can also repatriate amounts representing the refund of application / earnest money / purchase consideration made by the house building agencies / seller on account of non-allotment of flat / plot / cancellation of bookings / deals for purchase of residential / commercial property, together with interest, if any (net of income tax payable thereon), provided the original payment was made out of NRE / FCNR (B) account of the account holder, or remittance from outside India through normal banking channels and the Authorized Dealer bank is satisfied about the genuineness of the transaction. Such funds may also be credited to the NRE / FCNR (B) account of the NRI / PIO, if they so desire.
Remittance of Salary
A citizen of a foreign state resident in India, being an employee of a company, may open, hold and maintain a foreign currency account with a bank outside India and receive / remit the whole salary payable to him for the services rendered, by credit to such account, provided that income tax chargeable under the Income Tax Act, 1961 is paid on the entire salary as accrued in India.
Form 15CA / 15CB
Based on the Reserve Bank of India guidelines, a certificate in prescribed forms (15CA & 15CB) need to be produced while making remittances for certain types of transactions which are not covered by the Liberalised Remittance Scheme or Small Value Remittances.
The certificate is also required for all remittances from NRO account and for foreign nationals seeking repatriation.
Form 15CB needs to be certified by a Chartered Accountant. On the basis of this certificate, Form 15CA has to be filled in online portal of the income tax site and the acknowledgement generated from this site has to then be signed by the remitter and submitted along with Form 15CB in duplicate at the bank branch from where the remittance is being made.
How RMC can help you in your remittances?
RMC basing on the discussion with the client identifies the source of the funds in the NRO account from which NRI intends to remit to NRE account or his account outside India, and lists out the data and documents to be made available in support of the source of the funds and further to determine the tax payable if any before such remittance.
RMC then ensures that the relevant tax is discharged and the same is reported to the Income Tax Department.
RMC then prepares the Form 15CA on your behalf and submits with the Income Tax Department.
RMC also prepares the various documents / declarations as may be required by the remitting banker.
To know more about:
If you want to obtain Form 15CB / file Form 15CA call +91 98494 46110 / [email protected]