Master prompt
EB-5 lawful source of funds + FEMA/LRS compliance for Indian capital
Trace USD 800k-1.05M from Indian investor to US EB-5 escrow under Matter of Izummi: RBI LRS structuring, ODI route, gift / inheritance / property-sale documentation, 15CA/15CB tax clearance.
United StatesEB-5Source of fundsFEMALRSMatter of IzummiI-526E
[CLIENT_NAME] must demonstrate LAWFUL SOURCE of the full USD [TOTAL_EB5_AMOUNT_USD] EB-5 capital under Matter of Izummi (22 I&N Dec. 169) and 8 CFR Sec.204.6(j)(3). USCIS source-of-funds RFEs are the #1 cause of I-526(E) delays and denials for Indian investors. Trace every dollar from origin -> Indian bank account -> outward remittance -> US escrow.
CLIENT SOURCE-OF-FUNDS PROFILE
- Total EB-5 capital: USD [TOTAL_EB5_AMOUNT_USD]
- Primary source: [PRIMARY_SOURCE_TYPE]
- Primary source details: [PRIMARY_SOURCE_DETAILS]
- Secondary sources: None
- Planned remittance route: [REMITTANCE_STRUCTURE]
- Indian CA + AD bank: Yes
- Tax filing record: [TAX_FILING_STATUS]
§1 — USCIS DOCUMENTARY STANDARD (Matter of Izummi)
USCIS requires a PREPONDERANCE OF EVIDENCE that:
(a) The investor possessed the funds at the time of investment
(b) The funds were obtained through LAWFUL means
(c) The path from origin to the NCE escrow is TRACEABLE without gaps
"Lawful means" includes: legitimate business profits, salary, sale of personal property,
inheritance, gifts (donor must also document lawful source), loans (lender must be lawfully
funded), winnings (with tax records), insurance proceeds. UNLAWFUL: cash with no provenance,
funds derived from corruption / fraud / tax evasion / money-laundering, funds from sanctioned
parties.
§2 — SOURCE-SPECIFIC DOCUMENTATION CHECKLISTS
For [PRIMARY_SOURCE_TYPE], compile the following stack:
A. SALARY + BUSINESS INCOME (accumulated savings)
- Form 16 (TDS certificates) for last 5-7 years
- Income Tax Returns (ITR-1 / ITR-2 / ITR-3) for last 5-7 years with computation sheets
- Form 26AS / AIS (Annual Information Statement) showing TDS + financial transactions
- Employer letters confirming employment + salary scale
- Bank statements (savings + salary accounts) showing salary credits + accumulation
— last 5-7 years
- For business income: audited financial statements of proprietorship / partnership /
Pvt. Ltd. (CA-certified), Tax Audit Report under section 44AB, GST returns
B. SALE OF INDIAN RESIDENTIAL/COMMERCIAL PROPERTY (most common for HNW)
- Sale Deed registered with sub-registrar (with index of registration)
- Sale Agreement (Banakhat / Agreement to Sell)
- Buyer KYC: PAN, Aadhaar, address proof
- Buyer's source-of-funds (less rigorous, but USCIS may ask for proof buyer was a
legitimate purchaser)
- Original Purchase Deed (proof of how investor acquired the property — anchored
further back in time)
- Property purchase chain: if inherited -> Will + succession certificate; if purchased
-> earlier purchase deed + payment proof
- Capital-gains tax computation + Income Tax Return reporting the gain (LTCG @20% with
indexation, or 12.5% without indexation per Finance Act 2024 reform for transfers
after 23-Jul-2024 // 2026-05 — verify current rate)
- TDS u/s 194-IA at 1% deducted by buyer (challan)
- Bank statements showing sale proceeds credited to investor's account
- For [PRIMARY_SOURCE_DETAILS] involving Bandra flat sale INR 6.8 cr: ensure every component
above is gathered before petition filing
C. SALE OF SHARES / MUTUAL FUNDS (publicly listed)
- Demat account statements showing shareholding + sale
- Broker contract notes for sale transactions
- Securities Transaction Tax (STT) records
- Capital-gains tax computation (LTCG on listed equity @10% beyond INR 1 lakh; STT-paid
short-term @15% — verify current rates per Finance Act 2024)
- Bank statements showing sale proceeds credited
D. SALE OF UNLISTED SHARES / PRIVATE BUSINESS (most complex)
- Share Purchase Agreement (SPA) with buyer
- Buyer KYC + buyer's source-of-funds
- Independent valuation report (Registered Valuer under section 247 of Companies Act 2013)
- Capital-gains tax computation + ITR reporting
- Original investment in the unlisted shares (subscription docs, allotment letter)
- Earlier audited financials of the company being sold
- Form FCGPR if any inward FDI history
E. INHERITANCE (where original owner had lawful funds)
- Will / probate / Letter of Administration
- Legal Heir Certificate
- Estate distribution document
- Original owner's source-of-funds evidence (anchors back another generation — burden is
real)
- Property mutation / share transfer evidence
- Inheritance is tax-free in India under Income-tax Act, but reporting on ITR Schedule
Exempt Income recommended
F. GIFT (from family member)
- Registered Gift Deed (preferred) OR notarized gift deed + bank transfer evidence
- Donor's PAN + Aadhaar
- Donor's source-of-funds (FULL documentation — as if donor were the investor)
- Donor's last 3-5 years ITRs
- Relationship affidavit (parent / sibling / spouse — exempted from gift tax under section
56(2)(x))
- Donor's bank statement showing the outbound gift
- Investor's bank statement showing receipt
- For non-relative donors: subject to gift tax for the recipient (treat with caution)
G. LOAN FROM INDIAN LENDER (rare for EB-5 — generally not preferred)
- Loan agreement with bank / NBFC / individual
- Lender's source-of-funds (for individual lenders, this is rigorous)
- Collateral documents (FD lien / property mortgage)
- Repayment schedule + capacity-to-repay analysis
- RBI confines: loan secured by Indian assets used for foreign investment is acceptable;
a guarantee from foreign assets is structurally suspect
- Per RBI Master Direction on LRS, loans from Indian banks for LRS-route remittance have
restrictions — verify with AD bank
§3 — FEMA / LRS STRUCTURING
RBI Liberalised Remittance Scheme (LRS) baseline:
(a) USD 250,000 per resident individual per FY (April-March) // 2026-05 — verify
(b) Permitted purposes include "Investment in Equity / Debt of Joint Venture / Wholly
Owned Subsidiary abroad" and "Capital account transactions"
(c) Outbound remittance for EB-5 falls under permitted "investment abroad" — generally
acceptable
(d) TCS (Tax Collected at Source) at 20% on LRS remittances above INR 7 lakh per FY for
non-education / non-medical purposes (collected by AD bank; refundable against final
tax liability on ITR) // 2026-05 — verify current Finance Act rate
For USD [TOTAL_EB5_AMOUNT_USD] = USD 800,000 example:
- Single individual single FY: insufficient (USD 250k cap)
- Family pooling:
Self USD 250k + Spouse USD 250k + Adult child USD 250k = USD 750k in one FY
Plus USD 50k from one family member's next FY = USD 800k by month 13
- For USD 1,050,000: requires Self + Spouse + 2 children OR multi-FY across smaller pool
Walk through [REMITTANCE_STRUCTURE] step-by-step:
- Each remitter must independently satisfy LRS conditions
- Each remitter must independently document source of funds (if pooled from family,
each pooled component requires its own SOF stack)
- Each remitter must hold a PAN and have filed ITRs
- Each remitter must complete Form A2 (application for outbound remittance) at AD bank
- Each remitter pays TCS (refundable on filing)
- Funds wired to NCE escrow account in US — typically a USD escrow account at Wells
Fargo / Bank of America / similar held by an independent escrow agent
CRITICAL: Each pooled remitter typically transfers their share to the PRIMARY investor's
foreign account first, OR remits directly to the US escrow with documentation that the
contribution is "for the benefit of [CLIENT_NAME]'s EB-5 investment". USCIS scrutinises
whether the pooled funds are truly the investor's "own" funds at time of investment. A
formal gift / loan structure between family members is documented in advance with deeds
to address this.
§4 — CORPORATE ROUTE: ODI
Alternative to LRS for investors who own an Indian company (typical for [CLIENT_NAME] if
[INDIAN_COMPANY_NAME] applies): the company makes the EB-5 investment as Overseas Direct
Investment under RBI Master Direction on Overseas Investment (Aug 2022 framework).
Considerations:
(a) Indian company invests USD x in US entity as equity in WOS (Wholly Owned Subsidiary)
or JV (Joint Venture)
(b) ODI must be a bona-fide business purpose; passive EB-5 RC investment may NOT qualify
under standard ODI — verify with Indian counsel
(c) For DIRECT EB-5 (investor owns NCE which is a US operating business affiliated with
Indian parent): ODI is the natural route
(d) For REGIONAL CENTER EB-5: ODI route is generally NOT appropriate; LRS is the standard
path
(e) Annual Performance Report (APR) filings required for ODI
(f) Repatriation of dividends / capital subject to RBI regulations
§5 — 15CA / 15CB TAX CLEARANCE
Every outbound foreign remittance above INR 5 lakh / USD 6,000 requires:
(a) Form 15CA filed by the remitter on the Income Tax e-filing portal
(b) Form 15CB certificate signed by a practising Chartered Accountant (CA) — verifying
that applicable taxes have been paid on the funds being remitted and confirming
the remittance is compliant with the Income-tax Act 1961 + DTAA (India-US)
(c) AD bank may not effect the remittance without 15CA acknowledgement + 15CB certificate
For Yes = Yes: confirm CA has EB-5 experience or has consulted with an EB-5
specialist CA. Pricing: INR 25k-75k per 15CB depending on complexity. Each separate
remittance transaction needs a 15CA/15CB pair.
§6 — DOCUMENTARY EXHIBIT BUNDLE FOR I-526E
Prepare a single exhibit bundle indexed for USCIS:
Exhibit A — Investor identity + tax history
A1. Indian passport biographical page
A2. PAN card
A3. Aadhaar (redacted as needed)
A4. ITRs FY [last 7 yrs] with computation sheets + acknowledgement
A5. Form 26AS / AIS FY [last 5 yrs]
A6. Indian net-worth statement (CA-certified)
Exhibit B — Source documentation (per source type, e.g. property sale)
B1. Original purchase deed of asset sold
B2. Sale deed / agreement
B3. Buyer KYC + payment proof
B4. Capital-gains tax computation + challan
B5. Bank statement showing proceeds credited
Exhibit C — Path of funds
C1. Indian source bank account statements showing proceeds credited
C2. Internal transfers between investor's Indian accounts
C3. Form A2 (application for outward remittance) per transfer
C4. 15CA / 15CB certificates per transfer
C5. SWIFT / wire transfer confirmations from Indian AD bank
C6. US escrow account receipt confirmations
C7. Final transfer from escrow to NCE / JCE (for RC) OR direct deployment (for direct)
Exhibit D — Family pooling (if applicable)
D1. Gift deed / loan agreement between family members
D2. Each pooled remitter's identity + tax history + source-of-funds (D2-A through D2-X
per remitter)
Exhibit E — Indian compliance attestations
E1. CA certification letter on net worth + source of funds (CA-signed, with FRN)
E2. AD bank certification on FEMA compliance
E3. Indian counsel opinion letter (if any complex structures)
§7 — RED FLAGS USCIS WILL SCRUTINISE
- Large cash component in the historical chain (unaccounted-for funds at any prior step)
- Significant unexplained "loans from friend/family" with weak documentation
- Property sale to an interested-party buyer (related party, with non-arm's-length pricing)
- Inheritance with weak chain (Will not probated, no heirship certificate)
- Salary income inconsistent with claimed lifestyle / asset base (signal of unreported
income)
- Gift from non-relative without clear donor source
- Sudden large deposits in bank account without traceable origin
- Cryptocurrency / unregulated investment proceeds (very difficult to trace under USCIS
standard)
- Pre-PMLA-era (pre-2002) assets with no documentation chain
- Hawala / informal value transfer involvement
- Politically Exposed Person (PEP) status + asset accumulation inconsistent with declared
income
§8 — TIMELINE
For [TOTAL_EB5_AMOUNT_USD] = USD 800k via LRS family pooling:
- Month 0: Engage Indian CA + AD bank + US immigration attorney
- Month 1-2: Compile source-of-funds documentation; CA certifies net worth
- Month 2-3: First-tranche remittances (Self + Spouse + Adult child each USD 250k)
- Month 3-6: Subsequent tranches if multi-FY
- Month 6-9: US escrow filled; subscription to RC offering / direct investment deployed
- Month 9-10: US attorney prepares I-526E petition + comprehensive SOF exhibits
- Month 10-12: I-526E filing
§9 — RECOMMENDATION
State for [CLIENT_NAME]:
- SOURCE TRACEABLE — proceed with documented chain; engage Indian CA for 15CA/15CB
- SOURCE PARTIALLY TRACEABLE — gather additional documentation for [identify gap]; defer
petition filing
- SOURCE NOT TRACEABLE — recommend alternative path (later EB-5 attempt after re-
documentation; or L-1A / EB-1C pathway)
Cite Matter of Izummi, 8 CFR Sec.204.6(j)(3), RBI Master Directions, and Income-tax Act
section 195 inline.
DRAFT — for licensed US immigration attorney + Indian Chartered Accountant review. FEMA / LRS / 15CA-15CB compliance sits within the exclusive scope of Indian CAs and Indian counsel. Verify against current RBI Master Direction on LRS, Master Direction on Overseas Investment (Aug 2022 framework), and the latest Finance Act before remittance. Not legal advice. Not investment advice.Unlock the vault to see the full prompt