FORM 15CB REQIRMENT FOR TRANSFER OF NRO FUNDS TO NRE FUNDS

Tax queries 1596 views 6 replies

Sadanandan

63 Points Joined September 2015

Client is a NRI. He had transferred remittances from abroad a few years back whiich was erroneously credited to his NRO account that time. Such funds were lying in NRO term deposit now in the name of the Cilent. TDS is being duducted by bank and paid to the government on such NRO Account interest.

Now client would like to transfer such NRO deposit proceeds to his NRE account. Please advide the procedures to be followed for such transfer. Since the source of such funds are originally out of foregin inward remittance Is it required to file Form 15CB?

Replies (6)

Devansh Choksi

31 Points Joined January 2022

Yes,
As the purpose of form 15CB is to make sure that any sum going out of India is net of taxes

Sadanandan

63 Points Joined September 2015

As per Income Tax provisions, the question of Form 15CB arises only if the remittance is Taxable. Here in this case the remittance is neither an income nor taxable and the remitter and receipient are same persons . Just transfering from NRO account to NRE account of the same person and the source of such funds are originally out of foreing inward remittance. `As per my understanding, part D of form 15CA is sufficient. Please correct me if wrong.

Thanks

CA Sorav Gupta

Chartered Accountant

1005 Points Joined August 2022

Form 15 CA CB will not be required because the remittance is being made to the own account of the assessee.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)

Sadanandan

63 Points Joined September 2015

Many Thanks sir, for your reply. The Bank is still asking form both forms. What is your suggestion?

Thank u.

CA Sorav Gupta

Chartered Accountant

1005 Points Joined August 2022

Banks generally asked for these forms from everyone to safeguard their position. You can explain the details of the transaction to the bank manager and satisfy them that the forms are not required.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)

Roodita Gaikwad

Practice

4668 Points Joined November 2024

Yes, transfer of funds from an NRO to an NRE account is considered a repatriation of funds and is treated as a remittance under FEMA. Even if the original source was foreign inward remittance, the funds are now held in INR and are subject to RBI and income tax compliance.

Procedure:

Submit a request to the bank along with:
- Form 15CA (Part C, if applicable)
- Form 15CB issued by a Chartered Accountant
- Documentary proof of the original source (foreign remittance, tax paid, etc.)
The bank will evaluate if the transfer meets RBI guidelines for such repatriation.

Form 15CB is generally required if the amount exceeds ₹5 lakh in a financial year, or if TDS is applicable based on the nature of income.

To simplify the process, you can use our Excel-based utility for preparing Form 15CA & 15CB XML files in bulk, especially if you're handling multiple clients or transactions.