1. Manisha, a NRI, intends to remit funds outside India from her NRO a/c. Is this permissible?
Ms. Manisha, is permitted to make outward remittances from her NRO a/c subject to satisfying the documentation requirements and conditions and payment of applicable taxes.
2. What procedure is Ms. Manisha required to be followed to remit funds outside India from her NRO a/c?
Ms. Manisha is required to submit following documents to her AD Bank to remit funds outside India:
Form 15CA – a self declaration (if applicable)
Form 15CB – a Chartered Accountant’s Certificate(if applicable)
Form A2 and Application for outward remittance
Documentary proof of the sources of the funds
3. How can Ms. Manisha obtain Form 15CA and Form 15CB i.e. C.A. Certificate?
Form 15 CB needs to be certified by a Chartered Accountant. On the basis of this certificate, Form 15 CA has to be filled in online on the income-tax efiling site i.e. https://incometaxindiaefiling.gov.in/. Ms. Manisha is required to register herself on the income-tax site for the said purpose.
The Form 15CA generated from this site has to then be printed and signed by Ms. Manisha and submitted along with Form 15CB at the branch from where the remittance is being made. Alternately, the Form 15 CA can be filed through DSC.The forms mentioned in Q. 20 above are also required to be filled up and produced along with the Form 15 CB to the branch.
4. What is the limitation for repatriating funds out of NRO account?
Repatriation / transfer from NRO a/c to overseas a/c / NRE a/c is subject to a limitation of USD 1 Million per FY. Balances in the NRO account arising out of capital receipts are to be repatriated upto the above limit. The current income i.e. interest income, rental income can be freely repatriated i.e. without utilizing the limit of USD 1 Million.
5. Manisha, has registered a mandate-holder in her NRE a/c. Can she make an outward remittance from the account as well?
Mandate holder in the NRE account can initiate an outward remittance, however, it shall be ensured that the beneficiary of the remittance is Ms. Manisha, i.e. the account holder. 6. What is the process for making an outward remittance from a NRE a/c?
NRI will have to approach his AD bank where he holds his NRE a/c to make an outward remittance from there. 7. Are there any limits for making an outward remittance from a NRE a/c?
NRE account balances are freely repatriable. There is no limit specified for outward remittances from such accounts.