CA Ashama Rajawat - Expert Tax Planning for NRIs & Global Professionals

Quick Summary

Form 15CA/15CB is required when remitting money from India to foreign countries by NRIs. For property sale proceeds, it's mandatory if repatriating more than USD 1 million per financial year. Failing to file can result in remittance rejection and penalties up to 100% of amount.

What is Form 15CA and Form 15CB?

These are compliance forms required under Section 195 of the Income Tax Act when remitting money from India to foreign countries.

Form 15CA

Declaration by remitter

• Self-declaration form
• Filed online on income tax portal
• Contains remittance details
• Required for forex transactions

Form 15CB

Certificate by Chartered Accountant

• CA certification required
• Details tax liability on remittance
• Confirms TDS compliance
• Mandatory for certain transactions

When is Form 15CA/15CB Required for NRI Property Sales?

The USD 1 Million Threshold

Basic Rule: NRIs can repatriate up to USD 1 million per financial year from sale of immovable property without Form 15CB (CA certification).

If Sale Proceeds ≤ USD 1 Million:

• Form 15CA Part D: Yes (self-declaration)
• Form 15CB (CA certificate): No
• Bank Requirement: Only Form 15CA Part D

If Sale Proceeds > USD 1 Million:

• Form 15CA Part C: Yes
• Form 15CB (CA certificate): Yes (mandatory)
• Additional Documentation: Property purchase proof, sale deed, TDS certificates

Important Clarification

The USD 1 million limit is per financial year (April to March), not per property. If you sell multiple properties totaling >$1M, you need Form 15CB even if each individual sale is under the limit.

3 Parts of Form 15CA: Which One Applies to You?

Part A: TDS Already Deducted

When appropriate TDS has been deducted and deposited

Requires: Form 15CB (CA certificate) confirming TDS compliance

Part B: No TDS Required

When transaction is not chargeable to tax in India

Requires: Form 15CB (CA certificate) confirming no tax liability

Part D: Exempted Remittances (Most Common for NRIs)

For remittances specifically exempted from Form 15CB requirement

Requires: Only self-declaration, no CA certificate needed

Property sale proceeds up to USD 1 million fall under Part D!

Recent Exemptions: 33 Transaction Types Not Requiring Form 15CB

CBDT Notification exempts several transaction types from Form 15CB requirement. Key exemptions for NRIs:

1. Repatriation of Sale Proceeds (Up to $1M)

From sale of immovable property purchased from INWARD remittance or from NRE/FCNR account

2. Refund of Application Money

For shares, debentures, or property where application was not successful

3. Remittance from NRE/FCNR Account

Balances in NRE Savings/Current or FCNR deposit accounts (principal + interest)

4. Remittance of Current Income

Rent, dividend, pension, interest (after TDS) from NRO account, subject to limits

5. Remittance for Medical Treatment

Up to USD 250,000 or actual expense (whichever is lower) per financial year

6. Remittance for Education

Tuition fees and living expenses for studies abroad

Step-by-Step: Filing Form 15CA (Part D) for Property Sale

Login to Income Tax E-Filing Portal

Visit incometax.gov.in → Login with PAN, password → Go to "e-File" → "Income Tax Forms" → "File Income Tax Forms"

Select Form 15CA

Choose "Form 15CA" from dropdown → Select Assessment Year → Click "Continue"

Fill Part D Details

Personal Details: Name, PAN, address

Remittance Details:

• Purpose: "Sale proceeds of immovable property"
• Amount in INR and foreign currency
• Country to which remitted
• Mode of payment

Property Details:

• Property address
• Sale date and amount
• Purchase date and amount
• Source of purchase funds

Upload Supporting Documents

• Sale deed copy
• Purchase deed copy
• Form 16A (TDS certificate from buyer)
• INWARD remittance certificate (if property purchased from foreign funds)
• Bank account statement

Submit and Download Acknowledgement

Verify details → Click "Submit" → Download acknowledgement → Provide to bank for remittance processing

When You Need Form 15CB: CA Certification Process

If property sale proceeds exceed USD 1 million per FY, you must obtain Form 15CB from a Chartered Accountant.

What CA Certifies in Form 15CB

Tax Computation: Calculates capital gains and tax liability

TDS Compliance: Verifies TDS has been correctly deducted and deposited

DTAA Application: Applies treaty benefits if applicable

Net Amount Remittable: Certifies the amount that can be legally remitted

Timeline and Costs:

• CA fees: ₹5,000 - ₹20,000 (depending on complexity)
• Processing time: 3-7 days
• Validity: Specific to the transaction (one-time)

Documents Required for Form 15CA/15CB

Document	Purpose	Mandatory?
PAN Card	Identity verification	Yes
Sale Deed	Proof of sale and amount	Yes
Purchase Deed	Calculate capital gains	Yes
Form 16A (TDS Certificate)	Proof of TDS deduction	Yes
INWARD Remittance Certificate	If property purchased from foreign funds	If applicable
Bank Account Proof	NRO/NRE account where sale proceeds credited	Yes
Previous ITR (if filed)	For CA's reference	Recommended

Common Mistakes to Avoid

✗Attempting to remit without Form 15CA - bank will reject the transaction
✗Using Part A/B when Part D is applicable - causes unnecessary CA expense
✗Exceeding USD 1 million limit without Form 15CB - remittance will be rejected
✗Not keeping INWARD remittance certificate from property purchase - makes repatriation difficult
✗Filing Form 15CA after remittance - must be filed BEFORE remittance

Conclusion

Stay Compliant

Follow the repatriation rules

Form 15CA/15CB is a critical compliance requirement for NRIs repatriating property sale proceeds. For amounts up to USD 1 million per FY, the process is straightforward with Part D self-declaration. Beyond this limit, CA certification becomes mandatory. Always file Form 15CA before approaching your bank for remittance, maintain proper documentation, and consult a CA if you're unsure about which part applies to your situation.