How to send money abroad by Non-Residents of India (NRI)
Check out, How to send money abroad by Non-Residents of India (NRI) from their NRO Account, the Types of Documents required, and Applicable Charges
Foreign Outward Remittance
Case – I: Retail Customers
Type 2: Non-Residents of India (NRI)
Non-Residents of India (NRI) can remit up to USD 1 (one) million per financial year (April-March)
Basic Documents Required:
| Form for requesting O/w Remittance from NRO Account | Yes |
| Form A2 | Yes |
| Declaration under FEMA | Yes |
| Copy of PAN card/ Invoice of Educational Fee/ Passport/ Travelling Ticket/ Medical Bill, etc (As per the Nature of Remittance) | Yes |
| Form 15CA/15CB (As per the Case) | Yes |
Types of Charges:
- Margin Matrix, % may vary on the basis amount of remittance.
- SWIFT Charges
- GST (Service Tax)
- TCS on Remittance: NOT APPLICABLE
Note: Foreign Outward Remittance charges are not applicable in case of remittance made by an individual.
Example: Mr. Bob, a NRI wants to send money to his Son abroad for family maintenance, amounting to $20,000 from his NRO Account. Assuming the conversion rate is Rs.80/USD. Therefore, the amount of remittance in INR is 20,000 * 80 = Rs. 16,00,000/-
As per the above scenario, Mr. Bob needs to submit, the Form for NRO Remittance along with Form A-2 and Declaration under FEMA, a copy of Pancard and Form 15CA (Part B) + an order / certificate u/s 195(2) / 195(3) / 197 under Income Tax from A.O. OR Form 15CA (Part C) + Form 15CB from the Accountant.
Calculation of Charges
- Margin Matrix= $20,000 * 12% = Rs. 2,400/-
- SWIFT Charges = Rs. 500 + 18% GST = 590/-
- GST (Service Tax):
Up to Rs. 1 Lakhs * 1% = 1,000
More than Rs. 1 Lakhs – Rs. 10 Lakhs = 9,00,000 * 0.5% = 4500
Above Rs. 10 Lakhs = 6,00,000 * 0.1% = 600
Total = 1000 + 4500 + 600 = 6,100
GST = 6,100 * 18% = 1,098/- - Professional Charges (not related to Bank) for filing form 15CA/15CB
TCS: NIL
Applicability of form 15CA and 15CB are as under (Source- Income-tax Portal):
Form 15CA has four sections:
Remittance Chargeable to TAX
- Part A – If remittance or the aggregate of such remittances is chargeable to tax and does not exceed 5 lakh rupees during the financial year
- Part B – If remittance is chargeable to tax and the remittance or the aggregate of such remittances, exceeds 5 lakh rupees during the financial year and an order / certificate u/s 195(2) / 195(3) / 197 has been obtained from the AO
- Part C – If remittance is chargeable to tax and the remittance or the aggregate of such remittances, exceeds 5 lakh rupees during the financial year and a certificate in Form No. 15CB from an accountant has been obtained.
Remittance Not Chargeable to TAX
4. Part D – If remittance is not chargeable to tax
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