Faq Form 145 For Medical Remittance
India-specific preparation guide
Faq Form 145 For Medical Remittance needs current-law checks, portal verification, documents and a precise brief before you compare experts on WorkIndex.
Post Your Requirement - FreeNRE vs NRO vs FCNR Account Rules (AY 2026-27)
Operating bank accounts in India for NRIs is regulated under FEMA and the Income-tax Act, 1961. Resident accounts must be converted upon gaining NRI status.
| Account type | Tax treatment in India | Repatriation rules |
|---|---|---|
| NRE (Non-Resident External) Account | Fully exempt from tax under Section 10(4)(ii). Interest is not taxable in India. | Fully and freely repatriable. Held in Indian Rupees. |
| NRO (Non-Resident Ordinary) Account | Fully taxable in India at standard slab rates. Subject to 30.9% TDS under Section 195. | Repatriation limited to USD 1 Million per financial year under FEMA. |
| FCNR(B) Account | Fully exempt from tax in India for NRIs and RNORs. | Fully and freely repatriable (held in foreign currency). |
Form 15CA & Form 15CB rules
- Account Conversion Requirement: Operating a standard resident savings account after becoming an NRI is a FEMA violation. Accounts must be converted to NRO.
- USD 1 Million Repatriation Limit: NRIs can repatriate up to USD 1 Million per financial year from their NRO account (e.g. from property sales or inheritance).
- Form 15CA & 15CB: Mandatory for NRO outward remittances. Form 15CA is a self-declaration, and Form 15CB is a Chartered Accountant certificate verifying tax clearance.
- Gift Tax (Section 56(2)(x)): Gifts received from resident relatives are tax-free, but gifts to non-relatives exceeding Rs. 50,000 are fully taxable.
Keep these ready before remitting funds
- NRE/NRO interest certificates for the financial year.
- Source of funds proof (property sale deed, bank deposits, inheritance copy).
- Tax clearance proofs / challans.
- Draft Form 15CA and CA-certified Form 15CB.
Faq Form 145 For Medical Remittance: year and source check
Last fact-checked: 18 June 2026.
AY 2026-27 means FY 2025-26 income and is filed under the Income-tax Act, 1961. Tax Year 2026-27 means FY 2026-27 income under the Income Tax Act, 2025. Do not mix the two.
Verify stay days, TRC validity, DTAA rates, NRO interest, and Form 15CA/15CB requirements against official CBDT guidelines, notifications, and portal utilities before taking a filing position.
FAQs
Is interest earned on NRE accounts taxable in India?
No. Interest earned on Non-Resident External (NRE) accounts is fully exempt from income tax in India under Section 10(4)(ii).
What is the maximum limit for repatriating funds from an NRO account?
Under RBI and FEMA guidelines, an NRI can repatriate up to USD 1 Million per financial year from their NRO account, subject to payment of applicable taxes and filing of Forms 15CA and 15CB.
Can an NRI continue to hold a resident savings account in India?
No. Under FEMA regulations, once an individual's status changes to non-resident, they must convert their resident bank accounts to Non-Resident Ordinary (NRO) accounts. Operative resident accounts are illegal for NRIs.