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How can NRIs transfer funds Overseas from India?

NRIs live abroad and earn money abroad but many of them have money in India through passive earning such as rent or through the sale of investments and property. It is possible for them to transfer these funds outside India provided they follow the regulations laid down by RBI.

How can NRIs transfer funds Overseas from India

Read – Gift by NRIs to Resident Indian & vice Versa

Repatriation or Outward Remittance

Sending money abroad is known as repatriation or outward remittance. It can be done through your banking channel only either using online services or via demand drafts or cheques. You cannot use the services of money transfer agents.

NRIs will not have a resident Indian bank account. So their earnings in India will be credited to the NRO account. NRIs who do not have plans to come to India for good in the near future will not have much use of the money lying idle int the NRO account.

To help them use it effectively, the Reserve Bank of India (RBI) allows an amount up to USD 1 million per financial year from the NRO account to NRE account. The limit includes the payment of applicable taxes.

If an NRI sells a residential or commercial property, the amount that was brought in India to buy the property can be freely repatriated. The amount would have been brought in via an NRE account. It should be noted that proceeds of sale of only two properties can be repatriated.

If the NRI brings in money from abroad to repay the home loan amount taken to buy the property, the bank from which he took the loan will allow him to freely repatriate an equivalent amount to what was brought in the country from abroad.

There can be cases where the NRI has made an investment in India using funds that were brought in India from abroad and then sells it.  The sales proceeds of such investment can be repatriated freely after paying capital gains tax if applicable.

Interest earned and account balance in NRE and FCNR accounts can be freely repatriated abroad.

Rules For Transfer of Money –

An NRI has to follow certain rules to transfer his money from India to the foreign country where he is residing –

  • The NRI has to fill up and submit Form 15CA (online application form) and Form 15CB (Chartered Accountant Application) to the bank branch to transfer money from India to a foreign country.

The forms can be accessed here –

Form 15CA

Form 15CB  – Login to the portal and access the ‘forms’ section. This form is required only in certain conditions. For example, it is not required when the remittance is less than 50,000 in one transaction and less than 2,50,000 overall in one financial year

  • The exchange rates prevailing at the time of processing the repatriation request will be applicable.
  • It is important to give correct bank account details for the repatriation request as the bank in India might not be able to validate the details of a foreign bank account.
  • It will take two working days for the transfer to get completed.

Most banks in India allow NRIs to transfer funds from India to the country they are living in.

Outward Remittance

Check – Status of NRE FD after returning to India

Exceptions

Theoretically, there are many exceptions where you don’t require form 15ca & 15cb but my interaction with many NRIs & few CAs make me believe that bankers don’t want to take any risk when it comes to NRI issues. You can share your views in the comment section.

Read – Liberalised Remittance Scheme For NRIs

Double Taxation Avoidance Agreement (DTAA)

If your remittances consist of interest from NRO deposit, the bank is required to deduct tax at source on the interest at the rate of 30%. Suppose you live in the US or UK or any other country that has a DTAA with  India, then you are eligible for a reduced TDS rate of 15%.

The bank will require you to submit a Tax Residency Certificate from your country of residence if you want to avail of this reduced rate.

The basis of DTAA is that a particular income is taxed in both countries. There are scenarios of DTAAs that India has signed with countries that do not have personal tax. However, there are instances where a foreign country may not levy a personal tax on its residents, yet India has a DTAA with those countries that allow NRIs of those countries to avail a reduced rate of TDS.

In such cases, each bank might have its own way of handling this. Some banks like the State Bank of India require you to submit a declaration form if you reside in a country that has a zero tax but has a DTAA with India that offers a lower rate of TDS. On submitting this self-declaration, the bank will deduct tax at source at the reduced rate instead of the mandated 30%.

Also Read – NRI Joint Account with Resident Indian

Please share your experience regarding outward remittance. If you have any questions related to repatriation – feel free to add in the comment section. 

How can NRIs transfer funds Overseas from India
Published on 

Hemant Beniwal


Hemant Beniwal is a CERTIFIED FINANCIAL PLANNER and his Company Ark Primary Advisors Pvt Ltd is registered as an Investment Adviser with SEBI. Hemant is also a member of the Financial Planning Association, U.S.A and registered as a life planner with Kinder Institute of Life Planning, U.S.A. He started his Financial Planning Practice in 2009 & is among the first generation of financial planners in India. He also authored Bestseller book "Financial Life Planning". 

  • As per and CBDT Circulars and notifications Certificate 15 CA and bd 15 CB are not required of transfer from NRO to NRE and outward remitances covered under 33 exemptions. But in practice mostly bankl insist for these not required certificates. In a country like India even CA professional are not coming out and writing about correct rquirement.

  • My son has a NRO account. I am a MANDATE HOLDER. cAN i DEPOSIT MONEY IN HIS ACCOUNT & OPEN FD FOR ONE YEAR & TAKE INTEREST EARNED DURING THE YEAR IN INDIA

  • What are the consequences of a Senior citizen NRI whose only source of income is interest from FDs in banks in india maintaining resident Indian status for say 2 years and transferring funds to her daughter at regular intervals as a gift from her Indian savings account through bank transfer? For how long can an NRI maintain Indian resident status legally? Should she convert her bank account in India to NRI/NRO account immediately after becoming a NRI ? What are the consequences if she does not comply with it for the first 2 years? Can she receive funds in her US savings account as gift or maintenance from another NRI in US from his Indian savings account? Can she receive in her US savings account maintenance/gift monies from her daughter in the US who is of Indian origin and subsequently become an American citizen? What are the consequences if she, who is an NRI, files IT returns in India as resident Indian?

  • I have returned to India. But plan to take up a job again later outside in another country. Can I continue to keep my foreign bank accounts?

  • I am NRI, Can I transfer money to my wife to buy a property(worth Rs 25L). Will there be any tax implication for my Indian resident Wife? Rental income from the property will be taxed to me or my wife?

  • I want to transfer fund from my NRO account to my NRE account for which no form 15CA and 15CB are required as same is covered under exceptions purpose coed S- 1301 Why

  • I have recently changed my Domestic Savings Bank account to NRO account and opened a NRE account. Request your advise to transfer funds from NRO to NRE account to further simplify domestic taxation and to make outward remittance easier when needed. Would need your advise on correctly filling the 15CA form and your help on obtaining the 15CB form.

  • Hi,

    15 CA 15 CB

    There are two issues for tax compliance in respect of remittance to Non-Resident :-

    1 Tax on income of Remiter/tax on sources of funds in NRO Account of Remitter

    2. Tax on remittances/tax on remittee

    I would to draw attention to following :-

    So far as Income tax compliance in respect of income of Remiter/tax on sources of funds in NRO Account of Remitter is concerned Form 15CA and Form 15CB are not relevant. There is nothing in these forms about tax on income of remiittier.These forms don’t cover income tax on income of remitter or sources of funds being transferred . These forms cover only tax on remittance in the hands of remittee./receipient NRI .

    Regarding tax compliance relating remittance being made is concerned , the transfer from from own NRO to own NRE account is not taxable and is covered in the list of 33 covered under Nature of Payment/Purpose code S-1301 Remittance by non-resident towards family maintenance and savings. In view of this there is no requirement of submission Form 15CA and 15CB when Transfer/Remittance of funds from own NRO Account to own NRE Account in the same Bank .

    Many of of CAs ,tax experts and even some bank officials agree that for transfer of funds from own NRO account to own NRE account or own foreign account Form 15CA and 15CB are not required.

    In-spite of above position many of the banks do ask for these forms mainly for avoiding any audit risk.

    I request your considered view whether asking by banks for form 15CA and 15CB is in accordance with regulatory requirement or it is only for extra precaution? In case remittance is not taxable and covered under specified list of 33 for what purpose bank are asking for these forms?

    • I had a long dispute with my HDFC bank on their demand. As my NRO a/c had tax-paid funds I gave them only Form 15CA Part D because there is no provision for 15CB under part D. That provision is only in part C. Even then bank asked for a 2 line certificate from my CA in India. I had to submit that but my CA caused delay and charged a lot of money even though he had worked on my taxes for past 30 years. Actual transfer took 6 months. This experience leaves a bad taste. The whole thing is a mess of govt. Regulations. Jai Hind.

      • Would be grateful, if you could share how to get part D of 15CA as it has to be loaded on income tax site and whether assistance of CA is required to get Part D.

        • You can do this if you are confident in working on internet and you have an account with Income Tax department. But it is not difficult to create your own account by going to Income tax filing website. This is a very friendly website and very informative about your Taxes.
          Now about filing form 15CA you will have to decide part A, B, C or D to be filed depending upon Tax status of funds to be repatriated. You will need to do some reading for this purpose.

  • Hello Hemant,

    This is very good information, i have been searching for such information for quite long time now. Thank you so much.

    What i would like to know is, from NRE account i think i am freely allowed to repatriate the amount with no limitations and from NRO if i need to repatriate the fund, the i need to fill in certain forms. Is that correct ? And also to repatriate the the funds from my NRE it should be done only via Bank or can i also do it via online agents like Transferwise.

  • Investment Made through NRE, for example, Mutual find, Shares, when sold, can this be deposited into the NRE account? If the above is possible what the taxation. Investment Made through NRO, for example, Mutual find, Shares, when sold, can this be deposited into the NRO account? What is the taxation for income earned by using this account? Transfer of amount from FROM NRO AND NRE.

  • my client sold property and wants to repatriate $400000 to America. but LRS allows only $250000. what is the position?

    • Hi Rizwan,
      In my opinion, the two leading methods for you to transfer money abroad through your savings account are through Wire Transfer (online) or via Foreign Currency Demand Draft (offline).

  • We bought land in India in 1986 before emigrating from India. We sold this in 2014 and paid all tax due on it. With a certificate (I think 15CA) issued by a Chartered Accountant, the post tax proceeds went into an NRE rupee account. Can this be repatriated? The Indian bank manager says NO, because the money did not come in from overseas.

  • I have an Indian bank nre account & a residential account..my question is residential account to are account money can transfer via net banking?.. thanks

    • Hi Rajakannu,

      No you can not transfer money from resident account to NRE account.You have to convert your resident account to NRO account.

  • My son has NRE A/c in HDFC Bank, Hyderabad. At the time of selling his property in HYD the proceeds have been credited to his NRO a/c and later it was repatriated to his NRE A/c in the same Bank after submitting Forms 15CA & 15CB.
    Now wish to close his NRE A/c and he want the total funds to be remitted to his Foreign A/c in Australia in AUD.
    HDFC Bank is asking for again 15CA & 15CB for remittance from his NRE A/c which is RBI guidelines. Is it required again, since they were submitted for repatriation from NRO to NRE. What is the procedure for total remittance of his NRE funds to his foreign A/c in Australia
    Your advice would be highly appreciated
    Thank you in advance

    DR Rao

    • Hi Dr Rao,

      As the money is transferring this time from NRE account to foreign account you have to submit these forms again.

      for the procedure you have to consult with bank officer.

  • Further to my comment, I have noted that forms 15CA & 15CB are required as per RBI guidelines only for transfer of funds from NRO to NRE and no where it is specified for submission again for remittances from NRE to a foreign account. I do not know why HDFC Manager HYD is insisting o submission of forms 15CA & 15CB. Remittances from NRE to abroad should be a straight forward online transfer, but the guy says it should be channeled through Bank for total remittance and closure of the NRE A/c.

    Pls advise

    Thank you

  • I have a property for sale in Goa. I have to clear the loan against it 50 lacs and balance 50 lacs I want to repatriate to uk. I have nre and bro account . How much will I be taxed to get my money here in uk?

  • Is it necessary to submit forms 15ca & 15cb again when requesting for a full remittances from NRE a/c to a foreign a/c in Australia. These forms were submitted while selling a property in HYD and when the proceeds have been credited to NRO a/c after submission of these two forms.Then funds were transferred to Nre a/ c in the same bank. HDFC guy is asking for the for the forms submission again as per RBI guidelines.

  • I am a OCI card holder and lived in India until last month as a resident. Now I have moved back to Canada. I have money in India which I want to transfer to Canada. Can I do it ?

  • I would like to transfer money from the NRO account to a US bank account. Given the current Covid situation, what are my options?

    • Hi Minakshi,

      An NRO account is a non-repatriable account, you can not transfer the amount to the US bank account. You have to transfer this amount in NRE account first and then you can transfer it to US bank account. You have to fill up and submit Form 15CA (online application form) and Form 15CB (Chartered Accountant Application) to the bank branch to transfer money from India to a foreign country.

    • Hi Basil,

      Money is sent to the specific relative is exempt. Money send to the non relative above Rs 50000 will be taxable as per income slab.

  • I have money in my nro account, “I am based in Dubai since 1993 and my current status is NRI, how I can transfer this money from my Nro Account To NRE account as the money which is in my Nro account is through the sale of share and dividend interest and life policy insurance policy which has matured in past, the total is not exceeding 15 lacs.

    • Hi Sunil

      You can approach your bank and CA, need to fill 15ca and 15cb forms and submit in your bank and later they will remit the amount in your NRE account.

  • I am NRI living in the USA I have nro acct and I want to transfer it to my foreign bank acct in the USA INR 60Lac. is it mandatory to get a 15 ca form from my auditor?

    • Hi Amit

      Open a PIS account either with your NRE or NRO account for investments in Stocks.
      NRI’s can’t hold normal Savings account.

    • Hi Gangadhar

      You can consult with your bank or can approach for Wire Transfer, for taxation consultant you can talk to a Tax expert.

  • I have regular savings account in SBI India. MY PPF is maturing in a short time. I NRI- Overseas citizen. How to transfer those amounts to the SBI overseas branch without vising India.

  • Thank you in advance for clarifying the following issue. I have NRO and NRE accounts. I understand that for the transfer of funds from NRO to NRE one needs to submit 15CA and 15 CB forms along with a FEMA declaration as to the source of the funds. Is it necessary for the account holder to personally come to India and sign all these forms in front of a bank officer ?
    With the COVID Pandemic raging all over the world it is unreasonable to expect that the NRIs come to India to arrange for the transfer. Kindly advise . There wold be thousands of people in similar situation as mine !

  • Hi, Could anyone help me here?
    I want to send money to my sister in Australia for her family maintenance. She is having NRE/NRO account in India. Do I need to transfer the money to her account in Australia through the wire or can I utilize her NRE/NRO account in India? Can I send it to her NRO account and she can transfer it to her Australian account? Which is the legal way and cost-effective way. Please help.

  • What about taxation under to LRS 2020 of RBI? Does an NRI have to pay 5% tax on outward/foreign remittance of his income from sale of property in India?

  • NRI want to remit funds from his NRI account into his joint venture new office account outside India. what would be the purpose code for this transaction.

  • I am NRI living in Dubai and planning for a joint venture in Canada. want to remit funds for that joint venture from the NRI account. What purpose I have to show?

  • When funds r transferred from my Indian sb NRE account to my account in the USA through net banking or bank branch is TCS. applicable? Do I have to pay any extra tax to the Indian govt?

  • Hi Hemant:

    If I am repatriating my PF disbursements from India to UK, do I need to fill 15CA or 15CB? Will PF settlement be considered as non-taxable?

  • I want to transfer my pension funds from India to uk account. Have a savings account in India. what is the most cost effective way to transfer funds?

  • I have an NRI account in India. I want some withdrawal for university fees. Have I paid tax for that because I have been here for four years.

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