The Government of India permits you to remit funds up to USD 1 million per financial year overseas. But let’s look at how exactly you repatriate? What are the documents needed? Can you do it from abroad? Let’s together hover more into this topic and get a clear picture of how to repatriate funds from an NRO account to the U.S.
Remittance Regulations
As a part of its liberalization scheme, the Reserve Bank of India has made it easier for NRIs to remit funds from India to abroad over a while. Balances in NRE accounts are freely repatriable. It clearly shows you do not need any permission for sending abroad any amount because these funds are usually funds deposited from abroad and, in some cases, current income like interests on dividends on investments made through foreign funds.
On the other hand, balances in the NRO account are not freely repatriable. Also, the RBI allows the NRIs to remit up to USD 1 million per financial year from the NRO account, provided you follow specific procedures. The funds in NRO accounts are usually from income earned locally, like certain capital amount transactions or the rent on a property acquired in India.
Remittance Procedure
To remit funds from the NRO account, you must present two documents: Form 15CA and Form 15CB. The objective of both these documents is to assure that taxes are secured on the funds before they are remitted abroad as it becomes tough to collect taxes later. Both this form consists of more or less the same information. The difference is that
- Form 15CA – is an undertaking by the NRI to remit funds
- Form 15CB – is a certification of the report by the chartered accountant.
The Process
Step 1: Submit Form 15CA – Undertaking
The primary step is to submit this online application on the website of the Tax Information. This information consists of the remitter’s information like the name and the address of the NRI, permanent account number, complete details of the overseas account to which the fund is being remitted, etc. This form also contains the details of the accountant certifying Form 15CB.
Then the procedure is to submit Form 15 C.A. online and get an acknowledgement. Then it is to print these acknowledgements, sign them and submit them along with the Form 15CB to the Bank.
Step 2: Submit Form 15 C.B. – Chartered Accountant Certificate
This certificate is issued by a chartered accountant, certifying that the remitter has paid all the taxes due in India on the funds you plan to remit abroad. This certificate will also specify the nature of the amount to be sent: whether it is remittance of dividends, interests, royalties earned in India, or any other income. Your Chartered Accountant may need you to submit copies of the Tax Residency Certificate if, in any case, you are availing a lower rate of TDS under the Double Taxation Avoidance Agreement.
Then you must fill the form A2 for remittance and get the request form from the Bank to debit funds from your account. All the following documents are to be submitted to the Bank. When you arrive in India, you can carry out all these processes or download them online and send the signed copies to the bank branch via courier.
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