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Issue of form 15cb

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Sowmya.S.Balan

Paid Assistant

283 Points Posted on 29 August 2013

Dear Sir

One of our client (NRI) wants to transfer funds from his NRO account to his NRE account in India and for this purpose certificate in Form 15 CB demanded. In his NRO account various incomes are credited for eg. Matured amount of FD, postoffice Deposit , NSC, sale proceeds of his property in india (which are actually purchased out of foreign income ). What kind of amount to be transferred to his NRE account and TDS to be deducted on capital gain, interest etc? before issuing such a certificate in form 15 cb what kind of verification and documents to obtained by us ? please help me

Replies (1)

CA Pracheta Shirish Deshmukh

161 Points Posted on 29 August 2013

AS PER THE RBI CIRCULAR NO. 117 DATED 7TH MAY, 2012, THE TRANSFER OF REPATRIABLE FUNDS FROM NRO ACCOUNT TO NRE ACCOUNT ATTRACTS TAX TO BE DEDUCTED AT SOURCE AND ALSO THE ISSUANCE OF FORM 15CB BY A CHARTERED ACCOUNTANT SUBJECT TO THE CEILING OF US $ 1 MILLION PER FINANCIAL YEAR. I THINK, PRINCIPAL AMOUNT OF FD CANNOT BE TRANSFERRED FROM NRO TO NRE. SO, SOUMYA, IF YOUR CLIENT'S MONEY TO BE TRANSFERRED SHOULD BE WITHIN US $ 1 MILLION WHICH IS BUT OBVIOUS BY JUST HAVING A GLANCE AT YOUR QUESTION. IN CASE OF VERIFICATION OF THE DOCUMENTS, AT LEAST THE FOLLOWING DOCUMENTS SHOULD BE VERIFIED:

1. HIS PAN

2. TAX RESIDENCY CERTIFICATE

3. FD MATURED CERTIFICATE.

4. POST OFFICEAND NSC ALSO.

5. AGREEMENT FOR THEY SALE ENTERED BETWEEN YOUR CLIENT AND THE BUYER OF THE PROPERTY.

6. PASSPORT/VISA

TDS RATES FOR THE FOLLOWING:

1. FIXED DEPOSIT-30.9%

2.ALL OTHER INCOME-30%