DTAA claims flagged? Updating Form IOF may resolve tax issues

My relative gifted me funds in my NRO account from hers. Do I need a CA certificate to transfer it abroad?

- Harshal Bhuta

Form 15CB is required to remit funds from an NRO account to a foreign bank. It is issued by a chartered accountant under the Income Tax Act, 1961, confirming tax compliance for the remittance. It applies when any payment to a non-resident is taxable. In principle, it should not be necessary when an NRI transfers funds from their NRO account to a foreign bank. However, banks often insist on this certificate, even for self-transfers or when the remittance is not taxable. This is because funds credited to the NRO account may not always have suffered TDS. Further, it is important to note that under FEMA (Foreign Exchange Management Act) regulations, remittance of funds received from another individual's NRO account is not permitted. Even if all tax compliance requirements are fulfilled, the authorized dealer (AD) bank would no