Residential status of remitter in Form 15CA

234 views 2 replies

Abhay Naik

2 Points Joined September 2022

am OCI card holder U.S. citizen residing in India continuously for last five years having NRO(savings)and NRE accounts with you.I have rental income from my commercial property. My tax consultant has declared in the 15CA form the residential status of remitter as 'Resident'.I am at present repatriating Rs.90000/- from my NRO savings account to my NRE account.Aggregate amount of remittance including this 90000/- in the present financial year is Rs. 140000/- and as it is less than Rs.500000/-Form 15CA has been presented to the IndusInd branch.The branch is asking us:

1. to write our residential status as Non resident (Which is not true as I am residing in India for more than 182 days).

2.Bank is asking us to furnish a certificate of chartered accountant stating it is all tax paid money.

Our tax consultant said that once we exceed Rs.500000/- limit we will submit the necessary Form required and the certificate as required and comply with the requirement.

In any case we would like to do the right thing.Previous transaction was done by filling Form15CA with the branch and it was done without any hassle.

Now we need your expert opinion so we do not make any mistakes.Kindly advice us at the earliest.

Thank you.

Replies (2)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197380 Points Joined July 2016

1. Do not quote wrong in any statement. Give last filed ITR copy which might have been filed under 'Residential' status.

2. CA can write to Bank about non applicability of any formalities under law, which may have been wrongly demanded by bank.

Roodita Gaikwad

Practice

4668 Points Joined November 2024

As an OCI cardholder and U.S. citizen residing in India, with both NRO and NRE accounts, you are classified as a resident for tax purposes in India under certain conditions. Based on your query, here's the relevant information:

Residential Status:
- Since you are a resident in India continuously for the last five years, your residential status should indeed reflect that in Form 15CA, even though you're an OCI cardholder.
- However, the form should accurately reflect that you are a resident for tax purposes as per the Indian Income Tax Act.
Remittance from NRO to NRE:
- As per the guidelines, when you transfer funds from your NRO account to your NRE account, there is no TDS applicable, as it's a transfer within your own accounts.
- Since the aggregate remittance amount for the financial year is less than ₹5,00,000, Form 15CA is required, and you do not need Form 15CB as the remittance is within the specified limit.
Bank Requirement:
- Your IndusInd branch is asking for Form 15CA because the remittance amount is above the ₹2,50,000 threshold for NRO to NRE transfers. However, since the total annual remittance is below ₹5,00,000, Form 15CA suffices, and Form 15CB is not needed.
Action Steps:
- Ensure that the residential status in Form 15CA is correctly mentioned as Resident.
- Continue with the remittance process, as it falls under the limit for Form 15CA submission.
- Consult your tax consultant for any further clarifications if needed.