What is CA Certificate in India?
CA certificate in India refers to a certificate issued by a Chartered Accountant (CA) in India. A Chartered Accountant is a professional accountant who is registered with the Institute of Chartered Accountants of India (ICAI) and is authorized to provide a range of financial services in India.
A CA certificate is a document issued by a Chartered Accountant that certifies the financial statements or other financial information of an individual or a business. The CA certificate is generally required for various purposes, such as:
1. Applying for loans or credit facilities from banks or financial institutions.
2. Filing income tax returns (ITR) with the Income Tax department.
3. Applying for various licenses and permits from the government.
4. Verifying the financial statements of a company for shareholders or investors.
The CA certificate is a crucial document that provides assurance about the financial information of an individual or a business. It’s important to note that the CA certificate must be issued by a Chartered Accountant who is registered with the ICAI and is authorized to issue such certificates.
2 Why CA certificate required for NRI in India?
CA certificate may be required by Non-Resident Indians (NRIs) in India for various purposes. Some of the common reasons why an NRI may need a CA certificate in India are:
1. Applying for a loan: NRIs who wish to apply for a loan in India, such as a home loan or a personal loan, may need to provide a CA certificate to the bank or financial institution. The certificate certifies the NRI’s income, tax payments, and other financial details.
2. Filing income tax returns: NRIs who earn income in India or have investments in India are required to file income tax returns in India. A CA certificate may be required to verify the financial details, such as income earned and taxes paid.
3. Applying for a PAN card: NRIs who wish to apply for a PAN (Permanent Account Number) card in India may need to provide a CA certificate to support their application.
4. Applying for a visa: NRIs who wish to apply for a visa to visit or work in another country may need to provide a CA certificate to support their visa application. The certificate certifies their financial details, such as their income and tax payments.
The CA certificate is an important document that provides assurance about an NRI’s financial details in India. It’s important to note that the CA certificate must be issued by a Chartered Accountant who is registered with the Institute of Chartered Accountants of India (ICAI) and is authorized to issue such certificates.
3 Which CA Certificate required for Funds repatriation outside India by NRI
Non-Resident Indians (NRIs) who wish to repatriate funds outside India are required to provide some specific CA certificates as per the guidelines of the Reserve Bank of India (RBI). The following are the CA certificates required for funds repatriation outside India by NRI:
1. Form 15CA: This is a declaration of remittance made by an individual or a business for payments to be made abroad. The form needs to be certified by a Chartered Accountant (CA) and submitted to the bank before initiating the remittance.
2. Form 15CB: This is a certificate issued by a practicing CA certifying the details of remittance, such as the nature of the remittance, the purpose of the remittance, and the tax deducted at source, if any.
Both Form 15CA and Form 15CB are mandatory for repatriating funds outside India. These forms ensure that the remittance is compliant with the relevant tax laws and regulations.
It’s important to note that the CA who issues Form 15CB must be registered with the Institute of Chartered Accountants of India (ICAI) and must have undergone an Information Systems Audit (ISA) conducted by the ICAI. Additionally, the CA must have a valid Digital Signature Certificate (DSC) issued by the Certifying Authority in India.
Remitting money outside India (foreign remittance) is subject to various legal requirements and guidelines issued by the Reserve Bank of India (RBI). The following are some of the legal requirements for foreign remittance from India:
1. KYC compliance: The remitter (person sending the money) must complete the KYC (Know Your Customer) process with the authorized dealer (AD) bank, which includes verifying the identity and address proof.
2. Purpose of remittance: The remittance must be for a genuine purpose, such as education, medical treatment, employment, or maintenance of a close relative living abroad.
3. Limits on remittance: The amount of remittance is subject to limits set by the RBI, which may vary depending on the purpose of remittance.
4. Form 15CA and Form 15CB: As mentioned earlier, Form 15CA and Form 15CB are mandatory for remittance of funds outside India. Form 15CA certifies that the remittance is compliant with Indian tax laws, and Form 15CB certifies the details of the remittance.
5. Reporting requirements: AD banks are required to report foreign remittances to the RBI through various reporting formats, such as the Electronic Reporting System (ERS) and the Export Data Processing and Monitoring System (EDPMS).
It’s important to note that the legal requirements for foreign remittance may change from time to time, and it’s always best to consult a tax expert or an authorized dealer bank for the most up-to-date information.
What documents do I need to provide to remit my current income as an NRI/PIO?
To remit your current income as an NRI/PIO, you need to provide appropriate certification by a Chartered Accountant certifying that the amount proposed to be remitted is eligible for remittance and that applicable taxes have been paid/provided for.
Yes, NRIs/PIOs have the option to credit their current income to their Non-Resident (External) Rupee account, even if they do not maintain an NRO account. However, the authorized dealer bank must be satisfied that the credit represents current income of the non-resident account holder and income tax thereon has been deducted/provided for.
The eligibility criteria for a foreign national of non-Indian origin to remit their inherited assets from a person resident in India are as follows: the foreign national must have retired from employment in India, or inherited assets from a person resident in India, or be a widow of an Indian citizen who was resident in India. The remittance amount should not exceed USD one million per financial year (April-March), and the remitter must produce documentary evidence in support of acquisition/inheritance of assets, an undertaking by the remitter, and a certificate by a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes vide their Circular NO.10/2002 dated October 9, 2002.
Remittance of assets by NRO/PIO
NRIs/PIOs may remit an amount up to USD one million per financial year out of the balances held in their Non-Resident (Ordinary) Rupee (NRO) account/sale proceeds of assets (inclusive of assets acquired by way of inheritance or settlement), for all bonafide purposes, to the satisfaction of the authorized dealer bank, on production of an undertaking by the remitter and certificate by a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes vide their Circular NO.10/2002 dated October 9, 2002. NRIs/PIOs may also remit sale proceeds of immovable property purchased by them out of Rupee funds or as a person resident in India without any lock-in-period.
Repatriation of sale proceeds of residential property purchased by NRIs/PIO out of foreign exchange
NRIs/PIOs are allowed to purchase residential property in India using foreign exchange received through banking channels. When they sell such a property, they are permitted to repatriate the sale proceeds of that property to the extent of the amount paid for acquisition of immovable property in foreign exchange received through banking channels. This means that if an NRI/PIO purchased a residential property in India using USD 100,000 received through banking channels, they can repatriate up to USD 100,000 from the sale proceeds of that property.
It’s important to note that this facility is restricted to not more than two such properties. In other words, NRIs/PIOs can only repatriate the sale proceeds of up to two residential properties purchased by them out of foreign exchange received through banking channels.
NRIs/PIOs are permitted to repatriate the sale proceeds of residential property purchased by them out of foreign exchange to the extent of the amount paid for acquisition of immovable property in foreign exchange received through banking channels. The facility is restricted to not more than two such properties.
Under the Foreign Exchange Management Act (FEMA), all facilities available to NRIs are equally applicable to students. This means that students who are NRIs/PIOs can avail of the same facilities as other NRIs/PIOs under FEMA.
In terms of remittances, authorized dealer banks can allow remittances by students on production of an undertaking by the remitter and a certificate from a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes, Ministry of Finance, Government of India in their Circular No.10/2002 dated October 9, 2002.
Students going abroad for studies are treated as Non-Resident Indians (NRIs) and are eligible for all the facilities available to NRIs under FEMA.
As Non-Residents, they will be eligible to
receive remittances from India (i) up to USD
100,000 from close relatives in India on self declaration towards maintenance, which could include remittances towards their studies also and (ii) up to USD 1 million per financial year, out of sale proceeds of assets/balances in their account maintained with an AD bank in India.
All other facilities available to NRIs under FEMA are equally applicable to the students.
Educational and other loans availed of by them as residents in India will continue to be available as per FEMA regulations.
The remittances will be allowed to be made by the authorized dealer banks on production of an undertaking by the remitter and a Certificate from a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes, Ministry of Finance, Government of India in their Circular No.10/2002 dated October 9, 2002. [cf. A.P.(DIR Series) Circular] No.56 dated November 26, 2002.
Authorized dealer banks have been permitted to issue International Credit Cards to NRIs/PIO, without prior approval of Reserve Bank. Such transactions may be settled by inward remittance or out of balances held in the cardholder’s FCNR (B) /NRE /NRO accounts.
