Form 15CA & 15CB

Hi Siddhant,

Here's how it works for the scenario where an NRI sells property in India and later wants to transfer the sale proceeds from their NRO account to their foreign bank account:

1. TDS on Sale Consideration:

• The resident buyer deducts TDS on the sale amount as per section 195.

• The TDS is deposited with the government and the NRI receives the balance in the NRO account.

2. Transfer from NRO Account to Foreign Bank Account:

• When the NRI wants to repatriate funds from the NRO account to abroad, RBI regulations require certain compliance, including filing Form 15CA and Form 15CB.

Do you need to file Form 15CA and 15CB for repatriation of sale proceeds from NRO?

• Yes, when remitting money abroad from the NRO account, the NRI must file Form 15CA.

• Form 15CB, which is a certificate from a Chartered Accountant confirming that applicable taxes have been paid or deducted on the amount being remitted, is generally required for transactions exceeding Rs. 5 lakhs.

• For property sale proceeds, the amount usually exceeds Rs. 5 lakhs, so both Form 15CA and Form 15CB are required.

Which part of Form 15CA to file?

Form 15CA has multiple parts:

• Part A: For remittances where the payment is not chargeable to tax or tax has been deducted at source.

• Part B: For remittances where tax is deductible and the deductor has filed the TDS return.

• Part C: Where the payment is chargeable but no tax has been deducted.

• Part D: For remittances requiring a certificate under section 195(2), 195(3), or 195(4).

Since in this case:

• TDS has already been deducted by the buyer (resident) at the time of property sale.

• So, Part A or Part B is typically filed.

If the TDS has been deducted and return filed, then Part B is the appropriate part to file, along with the Form 15CB.

Summary:

• For repatriation from NRO account, file Form 15CA Part B and Form 15CB (CA certificate).

• Ensure TDS on sale consideration was deducted and return filed by the buyer.

• The CA will certify that tax compliance is done while issuing Form 15CB.