I am wiring money to US - specifically to Carta to exercise options and convert them to shares. The amount is about 20K USD, well above 5L INR limit for the forms and 7L INR limit for TCS.
I read this as a Capital Account transaction permitted under 37BB, and there is no applicability of TDS here.
Bit confused on this, what forms should I need to get filled? Do I need to get Form 15CB for this?
Hello @orion91
Since you are remitting $20,000 to Carta to exercise stock options, this qualifies as a Capital Account transaction under Rule 37BB, and TDS is not applicable. However, since the amount exceeds ₹5 lakh, Form 15CA is mandatory, and Form 15CB (CA certificate) may be required by the bank for compliance, even though no tax is deducted.
Additionally, if your total remittances exceed ₹7 lakh in the financial year, TCS at 5% will apply. It is advisable to check with your bank regarding their Form 15CB requirement and ensure compliance with the Liberalized Remittance Scheme (LRS) before proceeding.
Thanks @Swapnil_Agarwal , will check with my bank.
I thought the TCS rate was 20%?
If I have to do Form 15CB, is it possible to do via a CA through Quicko?
Hey @orion91
Yes, the TCS rate in your case is 20%, while it is 5% for educational and medical remittances.
Yes, Quicko offers services for filing Form 15CB through a CA.
You may need to fill Form 15CA and Form 15CB (if required) for tax compliance in India. Additionally, check with your bank for their remittance forms and FEMA regulations.