Press Information Bureau
Government of India
Ministry of Finance
07-August-2015 17:45 IST

Modifications in Foreign Exchange Regulations

Government has recently modified the Foreign Exchange Management (Current Account Transactions) Rules, 2000 and the Liberalized Remittance Scheme (LRS) for resident individuals for further liberalizing the existing guidelines. Accordingly, all resident individuals, including minors, are allowed to freely remit upto USD 2,50,000 (USD 1,25,000 earlier) per financial year for any permissible current or capital account transaction or a combination of both. These include the purposes of education or for maintenance of close relatives. Further, authorized dealers may allow remittances exceeding USD 250,000 based on the estimate received from the educational institution abroad or a hospital abroad. For small value remittances (upto USD 25,000), the documentation requirement is simpler and even PAN card is not insisted upon.

Currently, as per the provisions of the Income-tax Act, 1961 read with Income-tax Rules, 1962, no certificate from a Chartered Accountant is required to be obtained for certain remittances including sending money to students i.e., for remittances made under RBI’s purpose Code “S0305-Travel for education (including fees, hostel expenses etc.)” and remittance towards personal gifts and donations i.e., for RBI’s Purpose Code “S1302”. The complete list of payments in which no certificate from a Chartered Accountant is required to be obtained is given in explanation (2) to Rule 37BB of the Income-tax Rules, 1962.

This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Rajya Sabha today.

More Under Income Tax

Posted Under

Category : Income Tax (27891)
Type : News (13806)
Tags : Form 15CA (34) section 195 (156)

6 responses to “CA Certificate not required for certain remittances: Govt”

  1. anil landge says:

    R/sir,
    i am a salaried class III person
    please guide me on following matter.

    my son is residing at USA and to start his business there he want Rs.60 lacks. Now I am planning to send that amount.
    out of my retirement amount
    my querry is that is 15CA and 15CB is required and is their amy TDS applicable for remittence.

  2. Jonathon Canestrini says:

    In some cases, a certificate from a Chartered Accountant in Form 15CB is required before uploading Form 15CA online. Received a reminder email to e-file tax return from IT Department – What to Do?

  3. BSKRAO says:

    IN RETURN GOVT. WILL GET FOREIGN CURRENCY MORE THAN THE LIMIT ALLOWED IN THE ABOVE NOTIFICATION – EX:- STUDENT AFTER COMPLETION OF END EDUCATION IN US WHICH IS MUST FOR SEEKING EMPLOYMENT IN USA, WILL REMIT BACK TO INDIA FOREIGN CURRENCY MORE THAN THE LIMIT ALLOWED IN THE ABOVE NOTIFICATION THROUGHOUT HIS EMPLOYMENT FOR CREATING ASSETS IN INDIA.

  4. BSKRAO says:

    ENHANCEMENT OF TAX AUDIT LIMIT DOES NOT SUPPORT VOLUNTARY COMPLIANCE. IN FACT, THERE IS NO SUCH CERTIFICATION IN ANY COUNTRY IN TAXATION SIDE. I AM OF THE STRONG VIEW THAT EITHER GOVT. SHOULD MAKE ACCOUNTABLE ALL CLASS OF TAX PROFESSIONALS BY GRANTING SUCH POWERS TO SIGN TAX AUDIT REPORT OR DELETE ALL CERTIFICATES FROM ALL INDIAN TAXATION STATUTE. PRESENT INDIAN TAXATION STATUTE DOES NOT SUPPORT NON-CA TAX PROFESSIONALS TO ENTER TAX PRACTICE ON ONE SIDE, ICAI DOES NOT PROVIDE REQUIRED OUTPUT OF CAS TO THE ECONOMY ON THE OTHER HAND. ICAI HAS ALSO FAILED PROVIDE CORRECT STATISTICS OF PRACTICING CAS TO THE GOVT. TO TAKE NECESSARY STEPS IN THE MATTER OF WIDENING GENUINE TAX BASE IN INDIA.

  5. BSKRAO says:

    Largest portion of revenue coming from Individual Income-Tax payers in USA. As per the latest data provided by CPC on 04.06.2015 for the Asst. Year 2014-15 total sum of Rs.2,90,335/- Crores has been admitted as Income-Tax from Corporate tax payers covered by Tax Audit in India. Comparing this with the situation in USA, tax admission from Individual Income-Tax payers covered by Tax Audit should have crossed Rs.2,90,335/- Crores at least. Whereas in the same data provided by CPC, it is evident that only total sum of Rs.43,661/- Crores has been admitted as Income-Tax by Individual tax payers covered by Tax Audit in India. Now it is clear that our Central Govt. incurring huge revenue loss every year due to Tax Audit & 46 Plus Certificates prevailing in Income-Tax Act.

  6. t.v.sreekantan says:

    VERY VERY THANKS TO THE GOVERNMENT.THE GOVERNMENT MUST ALSO INCREASE THE
    THE TAX AUDIT LIMIT TO RS.TEN CROES

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