Transfer of funds out of country by Expatriat
This query is : Resolved
20 May 2009
Can some one please let me know the procedure for transferring the funds out of country by an expatriat at the time of leaving the country .
In this case the person is a United Nations International employee (at present serving in India and he is moving out of India as he has shifted job and joined another UN agency.
He wants to close his INR account here in which he was receiving part of his salary and transfer all his funds to his account in Canada(He is a canadian national. Under the UN immunities & preventions act he is not required to pay any tax but what are the formalities to transfer the money to his canadian account?
Thank You
In this case the person is a United Nations International employee (at present serving in India and he is moving out of India as he has shifted job and joined another UN agency.
He wants to close his INR account here in which he was receiving part of his salary and transfer all his funds to his account in Canada(He is a canadian national. Under the UN immunities & preventions act he is not required to pay any tax but what are the formalities to transfer the money to his canadian account?
Thank You
20 May 2009
I am not a right person to answer this query, however I can guide to find the right person. You need to check with the bank where the account of this person is maintained and they will let you know the entire proceedure for trasfer of funds.
21 May 2009
Thanks so much. I did check with the bank and they informed me that form A2 of FEMA is required to be filled in by him plus a certificate is required from the CA. However they don't have the format of the certificate to be provided by CA. There is a "FORM & APPLICATION FOR REMITTANCE U/S 195 OF THE INCOME TAX ACT" but I am not sure if I use the same for an expatriat also.
02 August 2025
For transferring funds abroad by an expatriate leaving India, especially in the context you described (a UN employee with tax exemptions), here’s a clear step-by-step guide based on FEMA and RBI regulations:
---
### 1. **Filling Form A2**
* **Form A2** is the primary document to be submitted to the authorized dealer bank (i.e., the bank where the INR account is held).
* It is a declaration form used for remitting foreign exchange outside India.
* The expatriate must fill this form to comply with FEMA (Foreign Exchange Management Act) rules.
---
### 2. **CA Certificate**
* The bank has asked for a certificate from a Chartered Accountant.
* This certificate generally certifies:
* The source of funds.
* That all applicable taxes (if any) have been paid or that the remittance is exempt.
* Since the person is a UN employee and exempt under the UN immunities, the CA certificate should state that the income is exempt from tax in India under the relevant UN agreement.
* There isn’t a **standard RBI-prescribed CA certificate format** specifically for this; the CA needs to issue a letter on their letterhead mentioning:
* Name of the expatriate.
* Nature of employment and exemption status under UN immunities.
* Confirmation that no Indian tax liability arises on these funds.
* Source of funds (salary credited to the INR account).
* That the remittance is as per FEMA guidelines.
---
### 3. **Application for Remittance u/s 195 (Income Tax Act)**
* Section 195 applies to deduction of tax on payments to non-residents.
* Since the expatriate is exempt from Indian tax on salary income under the UN agreement, **TDS provisions under Section 195 would not apply**.
* However, the bank may still want to see a **No Objection Certificate (NOC)** or a **certificate from Income Tax Department** or a **self-declaration** regarding tax exemption.
* Usually, the CA certificate suffices in such cases, or the expatriate may apply for a **No Objection Certificate** from the Assessing Officer under the Income Tax Act.
---
### 4. **Additional Steps**
* The expatriate must provide valid identification, proof of foreign bank account details, and any documents related to employment and exemption.
* The bank will process the remittance subject to RBI limits and guidelines.
* There is no limit on repatriation of salary income for NRIs/foreign nationals, but the documentation must be complete.
---
### Summary:
| Step | Details |
| ------------------- | ------------------------------------------------------ |
| Form A2 | To be filled for remittance |
| CA Certificate | Certify exemption under UN agreement & source of funds |
| Application u/s 195 | Usually not applicable due to exemption; may need NOC |
| Bank Documentation | Identity, foreign bank details, employment proof |
| RBI/FEMA Compliance | Ensure all formalities are met |
---
---
### 1. **Filling Form A2**
* **Form A2** is the primary document to be submitted to the authorized dealer bank (i.e., the bank where the INR account is held).
* It is a declaration form used for remitting foreign exchange outside India.
* The expatriate must fill this form to comply with FEMA (Foreign Exchange Management Act) rules.
---
### 2. **CA Certificate**
* The bank has asked for a certificate from a Chartered Accountant.
* This certificate generally certifies:
* The source of funds.
* That all applicable taxes (if any) have been paid or that the remittance is exempt.
* Since the person is a UN employee and exempt under the UN immunities, the CA certificate should state that the income is exempt from tax in India under the relevant UN agreement.
* There isn’t a **standard RBI-prescribed CA certificate format** specifically for this; the CA needs to issue a letter on their letterhead mentioning:
* Name of the expatriate.
* Nature of employment and exemption status under UN immunities.
* Confirmation that no Indian tax liability arises on these funds.
* Source of funds (salary credited to the INR account).
* That the remittance is as per FEMA guidelines.
---
### 3. **Application for Remittance u/s 195 (Income Tax Act)**
* Section 195 applies to deduction of tax on payments to non-residents.
* Since the expatriate is exempt from Indian tax on salary income under the UN agreement, **TDS provisions under Section 195 would not apply**.
* However, the bank may still want to see a **No Objection Certificate (NOC)** or a **certificate from Income Tax Department** or a **self-declaration** regarding tax exemption.
* Usually, the CA certificate suffices in such cases, or the expatriate may apply for a **No Objection Certificate** from the Assessing Officer under the Income Tax Act.
---
### 4. **Additional Steps**
* The expatriate must provide valid identification, proof of foreign bank account details, and any documents related to employment and exemption.
* The bank will process the remittance subject to RBI limits and guidelines.
* There is no limit on repatriation of salary income for NRIs/foreign nationals, but the documentation must be complete.
---
### Summary:
| Step | Details |
| ------------------- | ------------------------------------------------------ |
| Form A2 | To be filled for remittance |
| CA Certificate | Certify exemption under UN agreement & source of funds |
| Application u/s 195 | Usually not applicable due to exemption; may need NOC |
| Bank Documentation | Identity, foreign bank details, employment proof |
| RBI/FEMA Compliance | Ensure all formalities are met |
---
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