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As a non-resident Indian, your NRO account usually includes savings, earnings or inherited income in India.
NRO → Non-Resident Ordinary
And if you ever plan on repatriating your NRO account funds to your NRE (Non-resident External) or foreign account then filing of Form 15-CA along with Form 15-CB might be essential.
In doing so, you will be able to freely repatriate your money without any hassles whilst filling out the Form 15-CA helps the Indian government in scrutinizing the funds better and combating tax evasion, money laundering or terror financing.
I think we should have a glossary kind of H2 that says, important Terms to note - example. Remittance, remitter, remitee, etc.
Important Terms To Note
Remittance
The term remittance is of two types, one is outward remittance and the other is inward remittance. Transfer of your money from India to overseas is known as outward remittance and transfer of your money from overseas to India is known as inward remittance.
Generally, when someone uses the term ‘remittance’ it is to indicate ‘outward remittance’ until and unless specifically mentioned.
Remitter
The term ‘remitter’ means a person who remits the money or is responsible for remittance of money. For instance, if you are self-transferring your money held in your NRO account to an NRE account then you are referred to as a ‘remitter’.
Remittee
The person receiving the sum of ‘remittance’ is known as a remittee. For instance, if your tenant remits the rental income to your overseas account, then the tenant is referred to as ‘remittee’.
What is NRI Repatriation?
NRI Repatriation involves transferring funds held in your NRO account to your NRE or foreign account , all in accordance with the guidelines specified by the Indian government.
NRE → Non-Resident External
What are NRO and NRE Bank accounts, and what is best for you? Here’s a blog on ‘NRE vs NRO accounts’.
According to the FEMA (Foreign Exchange Management Act) 1999, you can transfer funds up to US dollars 1 million per financial year subject to fulfillment of certain conditions.
However, transferring funds above INR 5 lakhs in a financial year (single transaction or aggregate) might require filing Form 15 CA and 15 CB on your income tax e-portal.
Curious on how repatriation works for NRIs? Here’s your guide.
What Is Form 15 CA?
Form 15 CA plays a crucial role in the repatriation process. It is a declaration Form you file through the Income Tax of India e-portal stating that the taxes have been duly paid, ensuring a smooth and legal transfer of funds.
Upon further scrutiny, the Income Tax of India shares an acknowledgement receipt you can use to repatriate funds from your NRO account to your NRE or foreign bank account.
Form 15 CA can be filed online or offline. Since most NRIs reside abroad, the blog is focused on filing through online.
Applicability Of Form 15CA
Form 15 CA applies when the transfer is made outside India to your NRE or foreign account, and the remitter (person responsible for the transfer of funds) can be you or a resident Indian.
What Is Form 15 CB?
Form 15 CB is a declaration signed by a Chartered Accountant when the remittance amount exceeds INR 5 Lakhs per financial year certifying that you have complied with the provisions of the Income Tax Act for the said transaction.
Applicability Of Form 15CB
Form 15 CB is applicable when filing Form 15 CA - Part C.
Form 15 CB is an accountant’s certificate issued by a registered Chartered Accountant whose PAN (Permanent Account Number) status is active and possesses an unexpired valid Digital Signature.
The Chartered Accountant uses Form 15 CB to certify the remittance details and share an Acknowledgement Receipt Number (ARN) which you can submit while filing Form 15 CA - Part C.
Relevance Of Different Types Of Form 15 CA
There are four subsections to Form 15 CA and each has its own relevance. When transferring funds from your NRO account to your NRE or foreign account, your foreign remittance transaction might fall under any of the four parts below.
Form 15 CA - Part A
When your remittance amount or the aggregate of your remittance amount for the particular financial year (April to March) does not exceed INR 5 Lakhs but is subject to tax under the Income Tax of India Act, 1961, then filling out Form 15 CA - Part A is necessary.
Form 15 CA - Part B
Form 15 CA-Part B is necessary when your remittance amount or the aggregate of your remittance amount for the particular financial year exceeds INR 5 Lakhs. In this case, you need to have obtained an order certificate from the Assessing Officer (AO) under Section 195(2) / 195(3) or 197 of the Indian Income Tax Act, 1961.
You can refer to the ‘Know Your AO’ user manual for further information on how to find your Jurisdiction Assessing Officer based on your PAN.
Form 15 CA - Part C
When your remittance amount or the aggregate of your remittance amount for the particular financial year exceeds INR 5 Lakhs and you have obtained a Form 15 CB certificate from a Chartered Accountant.
Form 15 CA - Part D
You have to file Form 15 CA - Part D when your remittance amount is not subject to tax under the provisions of the Income Tax of India, 1961.
List Of Instances Where Form 15 CA Is Not Required
According to Rule 37 BB (3) of Indian Income Tax Rules, 1962, you can freely repatriate your money without filing of Form 15 CA for the following ‘nature of payments’
Steps To Follow While e-Filing Of Form 15 CA
Once you log in to your e-filing portal follow these steps to file Form 15 CA,
Click e-File tab on the top left corner, select ‘Income Tax Forms’ and then ‘File Income Tax Forms’
- On the next page, click on the tab labeled ‘Source of income not relevant’, scroll down to select ‘Form 15 CA’
- On the following page ‘Information for payment to non-resident’, select submission mode as ‘online’ and financial year
- On the next page, click ‘Let’s get started’
- Select the type of Form 15 CA and click ‘Proceed’.
- Enter Form 15 CB Acknowledgement Receipt Number (applicable only when you are filing Form 15 CA - Part C Form)
- Input the ‘remitter, remittee, remittance and verification’ details and click ‘Save’some text
- Remitter details remain pre-filled here
- Remittee details include - name, PAN (option), address, email and phone number
- Remittance details include - country, remittance amount, aggregate amount in the financial year, bank account number, branch name, IFSC Code, authorized dealer name, AD branch address, proposed date of remittance and TDS amount.
- Chartered Accountant details (applicable only when you are filing Form 15 CA - Part C Form)
- Verification details include mentioning your parent’s details along with the Place.
- On the next page, preview your details and click ‘Proceed to e-Verify’
- Select ‘Yes’ when the confirmation pop-up appears
- You will be directed to the ‘e-Verification’ page
Note:
Upon successful e-Verification, you will see a success message displaying your Acknowledgement number and a Transaction ID. You will receive a confirmation mail to your registered mail ID with the e-Filing portal.
How To File Form 15 CB Online?
Once logged in to Income Tax of India’s e-portal, follow these steps to assign the Form 15 CB compliance to your Chartered Accountant,
- Look for the ‘Authorized Partners’ tab on your homepage
- Select ‘My Chartered Accountant’
- On the following page, click on ‘Add CA’ at the top right
- Add your CA’s membership number and select ‘Form 15 CB.’
Once you’ve assigned the Form 15 CB to your Chartered Accountant, they will take over from there. You can proceed with the e-filing, taking an active role after the CA shares the Acknowledgement Receipt Number (ARN) with you.List Of Instances Where Form 15 CB Is Not RequiredYou won’t be required to furnish Form 15 CB in the following instances,
- When you are filing Form 15 CA under Part A, B, or D
- When the DTAA (Double Tax Avoidance Agreement) is applicable, and your country of residence considers that the amount will remain taxable there
- When your nature of payment is exempt as per Rule 37 BB (3) of Indian Income Tax Rules, 1962
- When you transfer funds to pursue your education abroad, the amount is within the prescribed limit set by the RBI (Reserve Bank of India).
When Do You Require A Chartered Accountant’s Assistance?
Filing your Form 15 CA and CB might require the skills and expertise of a professional, such as Chartered Accountants, since they remain up to date with the latest tax amendments and have the relevant knowledge and experience to navigate the complexities.Filing Form 15 CA or CB can be challenging, you can always log in to the iNRI platform and connect with one of our tax-experts and seek their help with filing and ease your workload.In case, you intend to file tax returns in India on your own then here’s your ultimate tax guide.
Difference Between Form 15CA and 15CB
Conclusion
The government of India has made Filing Form 15 CA mandatory whenever you or a resident Indian repatriates funds abroad to NRE or foreign account. A few instances specified above do not require filing Form 15 CA and CB. Submission of Form 15 CB depends on the type of Form 15 CA you are filing for.
You can get in touch with our tax experts curated explicitly for your needs by logging in to the iNRI platform if you find the process of e-filing burdensome or need any further assistance regarding the e-filing of Form 15 CA and CB.
Form 15 CA and Form CB: Frequently Asked Questions (FAQs)
What documents are required while filing Form 15 CA?
The documents required while filing Form 15 CA -
Remittance related documents -
- Nature of remittance - agreement/ invoice
- Purpose of the remittance - importing goods, payment for services, etc.
- Declaration - nature of the remittance and the purpose.
- PAN of the remitter (Indian resident)
Foreign recipient's details -
- Name and address.
- Country of residence.
Bank details -
- Bank account from which the remittance will be made.
- Foreign bank account to which the remittance will be sent.
Relevant Tax Residency Certificate (TRC), in case the recipient wants to claim benefits under the Double Taxation Avoidance Agreement (DTAA).
Can I withdraw Form 15 CA or CB?
Yes, you can withdraw the Form 15 CA or CB within 7 days from the submission date.
Are Form 15 CA and CB required to remit money from a resident Indian account to NRO account?
You are exempt from filing Form 15 CA or CB if the payment is towards your NRO account and the funds remain in India.
Is Form 15 CB required while filing Form 15 CA - Part C?
Yes, it is mandatory to furnish Form 15 CB when you are filing Form 15 CA - Part C.
How to e-Verify Form 15 CA?
To e-Verify Form 15 CA, you have the option to use Digital Signature Certificate (DSC) or Electronic Verification Code (EVC). Also, you can refer to the ‘How to e-Verify’ user manual on the Income Tax of India’s e-portal to understand the process of e-Verification.
Are all remittances subject to e-filing of Form 15 CA/CB?
No, you are not required to file Form 15 CA /CB if the purpose of remittance is as specified under Rule 37BB (3) of the Income Tax of India Rules, 1962 (mentioned above).
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