Foreign remittance

my client is NRI. He is staying in USA. He has having NRO account in India. In his portfolio he has having equity shares. Now due to advancement of age, he wants to repriate the Indian fund to US Dollar. He sold some shared and there is capital gain. 

First of all in Tax year 2026-2027, he paid advance tax on that gain income as per my advice. and for balance outstanding I filled 145 and 146. he being non resident and his own fund to be transferred to USA.

My query is which code as per RBI to be filled.  forex department had taken objection for code.

Replies (2)
Quick Summary
This discussion addresses an NRI client's need to repatriate funds from an Indian NRO account to the USA, specifically focusing on capital gains from equity share sales. The core issue is selecting the correct RBI purpose code on Form A2, as banks sometimes raise objections. The correct code for capital gains repatriation is typically P0008, though P0012 or S0012 might be accepted by some banks. Ensuring tax compliance with Forms 15CA and 15CB, and having filed Forms 145 and 146, is crucial for successful remittance.

To resolve the bank's objection, update the outward remittance purpose code on Form A2 to S0014 (Repatriation of NRO deposit balances), as the funds are being remitted abroad from an NRO account post-tax payment.

For capital gains repatriation from an NRO account to a foreign account, the correct RBI purpose code is usually P0008 (repatriation of capital gains on equity) under the RBI Master Direction on money transfer. The bank forex team may confuse this with S0012 (capital account transfer) ,  these are often the source of the objection.

Before the bank will process the remittance, confirm:

1. Form 15CA and 15CB ,  a CA must issue Form 15CB certifying tax compliance (gains reported, advance tax or TDS paid). This is mandatory under Rule 37BB for remittances above Rs 5 lakh. Form 15CA (Part C) is then submitted on the income tax e-filing portal.

2. Forms 145 and 146 ,  these are already filed, which covers the RBI-side undertaking from the remitter and the bank.

3. The purpose code ,  for equity share capital gains, it is P0008 (remittance of capital gains). If the bank is using P0012 or S0012 (which relates to repatriation of sale proceeds of assets, not gains), that is a commonly accepted alternative depending on the bank branch. Escalate to the bank treasury or the AD-I branch manager with a written clarification citing RBI circular A.P. (DIR Series) Circular No. 11 on NRO account repatriation.

For the full Forms 145/146 submission process and the remittance checklist, this [guide on Forms 145 and 146 for foreign remittances](https://taxgarden.in/blog/form-145-form-146-foreign-remittances-india-2026) covers the step-by-step flow.

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