Can I send money to my family abroad without Form 15CA?

Last updated 3 August 2026

Full Answer

A retired government officer in Nagpur was sending Rs 14 lakhs to his son in Canada for living expenses over the academic year. He initiated the transfer at his HDFC branch. The relationship manager told him that since the total was above Rs 5 lakhs, he would need to file Form 15CA Part A online before the bank could process the transfer. The officer had never used the Income Tax portal. His son's rent was due in four days.

Family remittances are among the most misunderstood categories in the 15CA framework.

Under Rule 37BB of the Income Tax Rules, read with Section 195(6) of the Income Tax Act, certain remittance categories are fully exempt from the 15CA (now Form 145) requirement. The relevant personal remittance exemptions cover maintenance of close relatives abroad, expenses on education of a family member outside India, and expenses on medical treatment abroad. If your remittance falls squarely within one of these categories, no Form 15CA (now Form 145) is required under the Income Tax Rules.

The Liberalised Remittance Scheme under RBI's Master Direction on LRS permits resident individuals to remit up to USD 2,50,000 per financial year for current account and capital account transactions. Family maintenance, education, and medical treatment are all permitted purposes under LRS.

The complication arises in practice because banks apply their own risk filters on top of the regulatory requirements. Once cumulative outward remittances from a single PAN cross Rs 5 lakhs in a financial year, most banks ask for Form 15CA Part A even for exempt-category transfers. Part A is a short online declaration, takes about ten minutes on the Income Tax e-filing portal, and requires no CA involvement. It is not legally mandatory for genuinely exempt remittances in all interpretations, but banks enforce it as a matter of internal policy and it is not worth arguing with the bank on the day of transfer.

The category boundaries matter more than people realise. Sending money for a child's tuition fees paid directly to the university: clearly exempt. Sending living expenses to a child's bank account: generally exempt as maintenance. Sending money to a sibling abroad who is not a close relative as defined under the Income Tax Act: this may not qualify for the maintenance exemption and could require a proper 15CA filing.

Remittances that are structurally different from simple maintenance require full compliance. Lending money to a family member abroad, even informally with no written loan agreement, is a capital account transaction. Transferring money as part of distributing inherited assets to a family member abroad involves its own FEMA permissions. Sending money for a family member to invest in foreign property is a capital account transaction that requires separate RBI approval beyond LRS in many cases.

An important clarification: NRIs sending money from abroad to their parents in India are sending money into India. Inward remittances to India do not require Form 15CA. The form only covers outward remittances from India to foreign accounts.

For the retired officer in Nagpur: his payment was genuine maintenance for his son and was exempt in nature. He filed Part A online in about fifteen minutes with help from a family member. The bank processed the transfer the next morning. Understanding which category your remittance belongs to, and what Part of 15CA if any is required, prevents last-minute delays.

Note: Rates and thresholds mentioned are as of FY 2024-25. Always verify current figures before acting.

This article is for general information only. For your specific remittance, consult a practicing CA.