Complete NRI Taxation & 15CA/15CB Foreign Remittance Handbook

Non-Resident Indians selling residential property or equity assets in India face a standard withholding tax rate (TDS) of 20% plus applicable surcharge and cess under Section 195, frequently leading to excessive tax deductions at source.

1. Obtaining Section 197 Lower TDS Certificates

To prevent extensive capital lock-in during property transactions, NRIs should apply for a Lower or NIL Deduction Certificate under Section 197 via Form 13 on the TRACES portal before executing the conveyance deed.

2. Form 15CA and Form 15CB Compliance Workflow

Authorized Dealer banks strictly mandate Chartered Accountant certification prior to approving outward remittances from NRO to NRE or overseas bank accounts under the RBI USD 1,000,000 Liberalised Remittance Scheme (LRS):

• Form 15CB: An exhaustive statutory audit certificate issued by a practicing Chartered Accountant confirming tax applicability, DTAA treaty relief, and proof of tax deduction.
• Form 15CA (Part C): Electronically filed by the remitter on the Income Tax e-Filing portal quoting the CA's 15CB acknowledgement number.

3. Leveraging DTAA Provisions (Article 13 Capital Gains)

Tax treaties between India and countries such as the USA, UK, UAE, Canada, and Singapore provide comprehensive relief against double taxation through Foreign Tax Credits (FTC) claimed via Form 67.