“Synopsis”
When NRIs plan to repatriate funds from India to abroad, they must comply with the Foreign Exchange Management Act (FEMA) and Income Tax Act rules. Two key forms—Form 15CA and Form 15CB—are required in many cases. This blog explains what these forms are, when they are needed, how to file them, and why they matter to NRIs transferring funds out of India legally and safely.
What is Form 15CA?
Form 15CA is a declaration form that an NRI (or resident) must submit to the Income Tax Department before making any foreign remittance from India. It tells the authorities that tax, if applicable, has been paid on the funds being transferred.
Key Points:
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Required for payments made to a non-resident or foreign company.
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Must be filed online through the income tax portal.
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A copy needs to be submitted to the bank before processing the remittance.
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Filing Form 15CA without paying required tax may attract penalties.
What is Form 15CB?
Form 15CB is a Chartered Accountant’s (CA) certificate confirming that:
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The remitter has deducted tax where applicable.
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The source of funds is legal and taxes (if any) are cleared.
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The remittance complies with Income Tax and FEMA laws.
When is it required?
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For remittances above ₹5 lakh in a financial year, a CA certificate (Form 15CB) is usually required before submitting Form 15CA (Part C).
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This provides third-party verification that the remittance is legitimate.
When Do NRIs Need Form 15CA/15CB?
NRIs need these forms before remitting or repatriating funds from their NRO account to a foreign account or to their NRE/FCNR account. These forms are not needed for NRE/FCNR account transfers, as those funds are already tax-free.
Scenarios When Forms Are Needed:
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Repatriation of rental income, dividends, or interest from NRO account
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Transfer of sale proceeds from real estate
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Sending gifts or family support abroad from Indian sources
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Remitting inheritance or bank savings abroad
Types of Form 15CA (Based on Threshold)
There are four parts to Form 15CA depending on the amount and taxability of the remittance:
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Part A – If the remittance is below ₹5 lakh in a financial year and not taxable
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Part B – If the remittance is below ₹5 lakh but taxable, and a CA certificate is available
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Part C – If the remittance exceeds ₹5 lakh, and a Form 15CB is mandatory
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Part D – For remittances not taxable under Indian law (like repatriation of NRE/FCNR funds)
Step-by-Step Process for NRIs
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Consult a CA to check whether tax is payable on the funds to be repatriated
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Get Form 15CB issued by the CA (if applicable)
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File Form 15CA on the Income Tax portal
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Submit both forms to your bank
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Bank will review and approve the outward remittance
Exceptions – When Forms Are Not Required
NRIs do not need Form 15CA or 15CB in these cases:
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Repatriation from NRE or FCNR account
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Remittance is less than ₹5 lakh and not taxable
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Remittance to diplomatic missions, embassies, UN organizations
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Payments for imports, travel, education, medical treatment, etc., covered by Schedule III of Rule 37BB
Penalties for Non-Compliance
Failing to file these forms correctly can lead to:
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Penalty of ₹1 lakh or more
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Rejection of remittance by the bank
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Legal issues under Income Tax Act and FEMA
Key Documents Needed
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Copy of PAN Card
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Copy of Passport and Visa (for NRI)
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Bank statements or transaction proof
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Sale deed or income proof (rent, dividend, etc.)
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Form 10F (sometimes needed for DTAA claim)
Best Practices for NRIs
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Keep tax filings up to date before remittance
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Don’t move money from NRO to NRE without tax clearance
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Always consult a CA if you are transferring large amounts
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Maintain a record of all filed forms and bank acknowledgements
Conclusion
For NRIs looking to repatriate funds from India, Form 15CA and 15CB are essential tools to comply with Indian tax and FEMA laws. Filing them correctly not only avoids legal trouble but also makes the remittance process smoother and quicker. Make sure you work with a knowledgeable CA and submit all forms correctly before making any foreign transfer.
