• Purpose code in 15CA, 15CB for repatriation

I am repatriating funds from my NRO account . Source of funds is gift from father. CA has already filed 15CA, 15CB with purpose code S1109. Bank has rejected the application and asked us to redo 15CA , 15CB with purpose code S0014, saying that is the only purpose code that's correct. CA says the code S0014 is the wrong code to apply here ,as this transfer is neither a capital account transfer nor are we repatriating our FCNRB/NRENRA, and this is simple transfer of non taxable funds, received as gift from father. However, Bank is insistent.
My question is , which code is correct?
Asked 1 month ago in Income Tax

Code S1302 is more relevant


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Vivek Kumar Arora
CA, Delhi
4748 Answers
980 Consultations

5.0 on 5.0

Dear Sir,


Purpose code is S1302 for remittance towards personal gifts and donations.


Payal Chhajed
CA, Mumbai
5188 Answers
284 Consultations

5.0 on 5.0

The correct purpose code for the scenario you described, where you are repatriating funds from your NRO account that were received as a gift from your father, is S1302. This purpose code corresponds to "remittance towards personal gifts and donations."

S0014 is typically used for repatriation of funds related to capital account transactions, which doesn't apply in your situation. You should communicate this to your bank and ask them to use the correct purpose code (S1302) for your transaction.


Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.


Thank you.

Shubham Goyal

Shubham Goyal
CA, Delhi
113 Answers
2 Consultations

5.0 on 5.0

NRO is a Rupee account maintained by a NRI. Any transfer from NRO to NRE accunt or any bank account abroad is a transfer from his own account to his own accounts elsewhere. So the purpose code S0014 seems to be appropriate, as S0014 is for " Repatriation of Non-Resident Deposits (FCNRB/N.RERA etc)". The reasson is that it is a repatriation of the deposit in NRO account. How the money is received in NRO account is not relevant for the limited purpose of the code S0014.

However, the CA may consider the source of money in the NRO account and ensure that the tax liability, if any, is discharged while repatriating the amount. He may specificially mention the source of deposit in NRO account, if needed.  

B Vijaya Kumar
CA, Hyderabad
994 Answers
124 Consultations

5.0 on 5.0

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