Form 15CA and 15CB: How to Legally Move Money from India to Canada

Step-by-step instructions on the RBI and Income Tax compliance required to repatriate funds from India, including property sale proceeds, NRO account balances, and other taxable remittances.

Summary

When transferring taxable amounts from India to Canada, NRIs must comply with Indian Income Tax regulations. Form 15CA (a taxpayer declaration) and Form 15CB (a Chartered Accountant certificate) are the two primary compliance instruments for remittances from India.

When Form 15CA and 15CB Are Required

Form 15CA is required for most foreign remittances from India. Form 15CB is specifically required when:

  • The remittance exceeds INR 5 lakh in a financial year, AND
  • It is a taxable payment (e.g., property sale proceeds, NRO account balance transfer)

Some remittances are exempt (see Rule 37BB of the Income Tax Rules for the exempted list, which includes personal maintenance up to limits).

Step-by-Step Process

  1. Engage a CA in India to issue Form 15CB (certification that applicable taxes have been deducted).
  2. Log in to the Income Tax e-filing portal (incometax.gov.in) and file Form 15CA online using the details from 15CB.
  3. Obtain the acknowledgment number from Form 15CA.
  4. Submit both Form 15CA (with acknowledgment) and Form 15CB to your Indian bank along with the remittance request.
  5. The bank will process the wire transfer after verifying compliance.

RBI Purpose Codes

Every international remittance from India must include an RBI Purpose Code that describes the nature of the transaction. Common codes for NRIs:

  • P0008: NRO account repatriation
  • P0011: Maintenance of close relatives abroad
  • P1302: Property sale proceeds

Using an incorrect purpose code can cause transfers to be rejected or flagged by the bank. Always confirm the correct code with your CA.

Transferring NRO Balance to NRE Account

NRIs can repatriate up to USD $1 million per financial year from their NRO account. To transfer from NRO to NRE, you must file Form 15CA/15CB certifying that applicable Indian taxes have been paid on the amount. Once moved to NRE, the funds become freely repatriable and are not taxable in India on subsequent transfers.

Common Mistakes Indians Make

  • Using an incorrect RBI purpose code, causing the remittance to be rejected.
  • Attempting to repatriate from NRO without filing 15CA/15CB, leading to bank refusal.
  • Not deducting TDS before transferring property sale proceeds and facing penalties.
  • Filing Form 15CA online without a matching 15CB from a CA when one is required.

Official Resources

  • Income Tax e-filing portal (Form 15CA): incometax.gov.in
  • RBI Master Direction on Remittances: rbi.org.in
  • FEMA LRS (Liberalised Remittance Scheme): rbi.org.in/scripts/BS_ViewMasDirections.aspx