Paying University Fee from India by Resident Indian to OCI student

- Remittance by resident/non-resident to non-resident outside India attracts income tax and FEMA provisions. Under Income tax, filing of Form 15 CA and 15CB is applicable. In your case, it is remittance towards educational fees of your brother which is exempt from tax deduction.

- There is no need of any letters. After filing of Form 15CA and 15CB, submit the hard copies to the authorised dealer i.e. your bank to process the remittance. For filing of 15CA and 15CB, CA needs some details from you.

- No need of PAN of your brother.

Hi,

Under liberalised remittance scheme, one can send money upto 2.5 lacs USD for the study of his relatives. However, under FEMA, nephew is not considered as relative. Hence, sending money to nephew may require prior permission of RBI. Your bank will be able to tell you exact requirements.

Further, it is advisable to send money to your nephew's parents who in turn can send money to your nephew under LRS schemes.

Further, practically, your bank will ask for FORM 15CA/CB for sending money outside India.

Hello,

Under Liberalised Remittance Scheme (LRS), residents are allowed to remit up to USD 250,000 per financial year for studies abroad. The amount exceeding USD 2,50,000 can be remitted based on the estimate received from the university/institution abroad.

Form 15CA and 15CB will be required to be filled.

PAN of your brother Canadian citizen (PIO) won't be required only remitters PAN is required.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Hi,

You need to submit form 15CA & 15CB subject to following conditions:

Form 15CA needs to be filled only if the remittance is chargeable to tax in India. If remittance/payment is not chargeable to NRI then Form 15CA is not required.

-No Form 15CA and 15CB will be required to be furnished by an individual for remittance which do not require RBI approval under its Liberalized Remmittace Scheme (LRS).

-The list of payments of specified nature under Rule 37 BB where submission of Forms 15CA and 15CB is not required has been expanded from 28 to 33.

-A CA certificate (Form No. 15CB in this case) will be required to be furnished only in case of payments made to non-residents which are chargeable to tax and the amount of payment during the year exceeds Rs. 5 lakhs.

We have handled such cases before. We may assist you in entire procedure.

-There is no need of any other letters.

In such case, he won't be covered under definition of relative as per FEMA. So, RBI approval shall be required.

Also, be aware about the taxability of gifts for NRI receiving gifts from a resident of India.

Yes you can transfer there will be no restriction but you need to fill form 15CA for such transfer as bank would require the same.

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Thank you