Repatriation of Fund -15CA, 15CB Certificate-Guide to Transferring Money from India to a Foreign Country:
Repatriation of Fund-In today’s globalized world, transferring money from India to a foreign country has become a common practice. Whether it’s for education, medical expenses, investments, or personal reasons, the process is governed by specific regulations under the Foreign Exchange Management Act (FEMA) and Reserve Bank of India (RBI) guidelines. With increasing international transactions, it is crucial to understand the various modes, regulatory requirements, and tax implications involved in sending money abroad. Failure to comply with these guidelines can result in penalties, delays, or rejection of the remittance.
This blog will guide you through the process, rules, and compliance requirements for outward remittances from India, helping you navigate through the legal framework while ensuring a seamless transfer of funds.
At Jitesh Telisara & Associates LLP, we specialize in assisting individuals and businesses with outward remittances by ensuring full compliance with RBI regulations, FEMA guidelines, and tax laws. Our expert Chartered Accountants (CAs) provide end-to-end support, including:
- Form 15CA & 15CB certification to meet tax compliance requirements.
- Guidance on RBI’s LRS scheme and eligible transactions.
- Documentation assistance to ensure a hassle-free transfer process.
- Tax advisory to minimize liabilities and claim refunds where applicable.
- NRI financial consulting for repatriation of funds from NRO accounts.
With our expertise, you can ensure that your international money transfers are smooth, secure, and fully compliant with Indian financial laws.
Rules & Compliance Under RBI’s Liberalized Remittance Scheme (LRS)
The Liberalized Remittance Scheme (LRS) allows resident individuals to remit up to USD 250,000 per financial year for permissible transactions. Here are the key conditions:
Permitted Transactions Under LRS
- Education and living expenses abroad
- Medical treatment
- Travel-related expenses (business/tourism)
- Investment in foreign stocks, bonds, and real estate
- Gifts and donations to foreign relatives/friends
- Payment for services or subscriptions (e.g., foreign courses, software)
The scheme is designed to provide flexibility to Indian residents who need to send money abroad for genuine purposes. However, any remittance under LRS must be carried out through authorized dealer banks that ensure compliance with regulatory guidelines.
Step-by-Step Process of Transferring Money from India to a Foreign Country
Step 1 : Choose an Authorized Dealer Bank or Service Provider
Banks authorized by the RBI or licensed money transfer operators facilitate outward remittances. It is important to select a reputed financial institution with competitive exchange rates and low transfer fees.
Step 2 : Complete Form A2 & LRS Declaration
- Form A2 is required to declare the purpose of remittance and confirm compliance with FEMA rules. The form acts as a declaration that the remittance falls under the permitted categories.
- Banks may ask for additional documents based on the nature of the transfer, such as university admission letters, medical bills, or property purchase agreements.
Step 3 : Obtain Tax Clearance (Form 15CA & 15CB if required)
- Form 15CA: A declaration filed online with the Income Tax Department before remittance. It is a self-declaration by the remitter about the nature of the transfer and applicable taxes.
- Form 15CB: A Chartered Accountant (CA) certificate is required confirming that applicable taxes are paid. The CA verifies that the remittance is in compliance with the Double Taxation Avoidance Agreement (DTAA), if applicable.
Step 4 : Submit KYC Documents
The following documents are typically required:
- PAN Card
- Identity Proof (Aadhaar/Passport)
- Bank Statements (to verify fund sources)
- Supporting Documents (e.g., tuition invoices for education payments)
Banks require these documents to prevent financial fraud and ensure compliance with anti-money laundering (AML) laws.
Step 5 : Bank Verification and Processing
- The bank will verify documents, compliance with FEMA, and tax clearance.
- Once approved, the transfer is processed via SWIFT or other remittance services. The time taken for processing varies depending on the service provider, with most transfers completing within 1-5 business days.
Tax Implications on Foreign Remittances
As per Indian tax regulations, Tax Collected at Source (TCS) applies to outward remittances:
| Type of Remittance | New TCS Rate (w.e.f. 1st April 2025) |
|---|---|
| LRS for education (financed by a loan from financial institution) | NIL |
| LRS for medical treatment / education (not financed by loan) | Nil up to ₹10 lakhs 5% on amount exceeding ₹10 lakhs |
| Purchase of an overseas tour package | 5% up to ₹10 lakhs 20% on amount exceeding ₹10 lakhs |
| Any other purpose | Nil up to ₹10 lakhs 20% on amount exceeding ₹10 lakhs |
Transferring Money from an NRO Account for NRIs
For Non-Resident Indians (NRIs), money can be repatriated from an NRO (Non-Resident Ordinary) account subject to:
- USD 1 million limit per financial year
- Form 15CA & 15CB submission
- Proof of source of funds (e.g., rental income, sale proceeds)
NRIs must ensure that tax dues are cleared before repatriating funds from their NRO accounts. Funds held in NRE (Non-Resident External) accounts and FCNR (Foreign Currency Non-Resident) accounts can be freely repatriated without restrictions.
Transferring money from India to a foreign country is straightforward if you follow RBI’s LRS guidelines and tax compliance requirements. It is advisable to consult with a bank or a tax expert for high-value remittances to ensure smooth processing. With the right approach, international money transfers can be secure and hassle-free!
Our team of seasoned tax professionals possesses in-depth knowledge of Indian tax laws and stays updated with regulatory changes to ensure our clients remain fully compliant. We take pride in delivering tailored and professional tax solutions, helping NRIs seamlessly navigate India’s complex taxation system.
As specialists in NRI taxation, we recognize that understanding tax regulations can be overwhelming. Our experts offer a comprehensive range of services, including tax planning, Income Tax return filing, compliance management and representation. Whether you’re newly classified as an NRI or have lived abroad for years, we provide the guidance needed to simplify tax matters, allowing you to focus on your priorities with confidence.
