Repatriation of funds to UK

Hi Sukhvinderjit,

Here’s a detailed breakdown regarding repatriation of funds to the UK after sale of rural agricultural land:

1. Tax Clearance Certificate (No TDS Certificate)

• Is it required?
  Generally, for sale of rural agricultural land, no Capital Gains Tax (CGT) or TDS applies as per Indian law. But if the buyer or bank insists, you can apply for a Tax Clearance Certificate or No Objection Certificate (NOC) from Income Tax Department.

• Application & Processing Time:

  • You (or your CA) can apply online through the Income Tax e-filing portal for a certificate.

  • The processing time varies from 15 to 45 days, depending on the tax office and case complexity.

  • Complete and correct documents speed up processing.

• Online Process:

  • Application can be submitted online via Income Tax Department’s TRACES portal or e-filing portal.

  • Some jurisdictions require physical submission, but many now accept online.

2. Assessment by Income Tax Department

• If no tax is payable (as is the case for rural agricultural land), assessment is typically simple and fast.

• The Department issues a Nil Deduction Certificate or No Objection Certificate after verification, which may take about 15-30 days post application.

• Timing depends on workload and if any additional clarifications are needed.

3. Filing Form 15CA and 15CB

• Form 15CA:

  • A declaration by the remitter that taxes have been paid or are not applicable. Filled online on the RBI's official portal.

• Form 15CB:

  • A certificate from a Chartered Accountant (CA) confirming the correctness of tax compliance and that TDS is either paid or not applicable.

  • CA will require details such as:

    • Nature of remittance (sale proceeds of land)

    • PAN and address of seller and buyer

    • Details of sale deed

    • Bank details

    • Tax paid or exempt status

    • Relevant section under which tax is exempt or no TDS applies

• Timeline:

  • Both forms can be prepared and submitted within 1-3 days, assuming all documents and info are ready.

4. Time for Fund Repatriation to UK

• After submitting 15CA/15CB and receiving clearance:

  • Bank initiates outward remittance under Liberalized Remittance Scheme (LRS) or applicable FEMA guidelines.

  • The process usually takes 3 to 7 working days, depending on the bank and currency conversion.

Summary Table

Important Tips:

• Maintain full documentary evidence (sale deed, PAN, bank statements).

• Consult a CA to ensure smooth processing of 15CB and to avoid delays.

• Inform your Indian bank about the purpose of remittance and get their procedure for outward remittance.