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Repatriation of Assets from India — NRI Guide to Moving Money Under FEMA

Repatriation of Assets from India — NRI Guide to Moving Money Under FEMA

Understand the Permissible Limits, Required Compliance, and Process for Transferring Funds & Assets Abroad as an NRI

Repatriation of assets refers to the transfer of money and assets from India to an NRI's country of residence. This is governed by the Foreign Exchange Management Act, 1999 (FEMA) and its associated regulations, and the permissibility and process depend on the nature of the funds — whether they arise from NRE accounts, NRO accounts, sale of property, investments, rental income, inheritance, or gifts. Understanding the distinction between freely repatriable funds and funds subject to an annual cap is fundamental to any NRI's financial planning.

Funds held in NRE (Non-Resident External) accounts and FCNR (Foreign Currency Non-Resident) accounts are freely and fully repatriable — principal and interest can be transferred abroad without any limit or restriction. By contrast, NRO account funds — which accumulate from Indian-sourced income like rent, dividends, and interest — are subject to a repatriation cap of USD 1 million per financial year, after payment of applicable taxes and submission of a CA certificate in Form 15CB and an online declaration in Form 15CA. This connects closely with NRE and FCNR account exemptions, NRI ITR and TDS compliance, and the overall NRI tax framework.

Key Repatriation Scenarios Covered

NRE Account — Fully Repatriable

Principal and interest in NRE savings accounts and NRE fixed deposits are freely repatriable without any limit or approvals, as these funds originate from foreign remittances or earnings. This is the most efficient channel for NRIs to park and repatriate foreign earnings in India.

NRO Account — USD 1 Million Annual Cap

Current income and capital account funds in NRO accounts (rental income, dividends, interest, maturity proceeds) are repatriable up to USD 1 million per financial year per individual, subject to payment of applicable Indian taxes and submission of Form 15CA/15CB (CA certificate on tax compliance).

Sale Proceeds of Indian Property

NRIs selling Indian residential or commercial property can repatriate sale proceeds subject to: (a) property was originally purchased with inward remittance or NRE/FCNR funds; (b) repatriation is from NRO account within the USD 1 million cap; (c) applicable TDS (12.5% LTCG, 30% STCG) has been deducted by the buyer. ITR must be filed to claim any refund on excess TDS.

Inheritance & Gift Repatriation

Inherited assets in India — property, deposits, or investments — can be repatriated by NRIs after establishing a valid claim (probate or succession certificate), paying applicable taxes, and complying with the USD 1 million annual cap. Separate limits apply for commercial property inherited from persons resident in India.

Repatriation from RFC Accounts

Returning NRIs who convert NRE/FCNR accounts to RFC (Resident Foreign Currency) accounts can freely repatriate the RFC balance at any time — including after regaining Resident status — as RFC funds represent original foreign-source funds.

Form 15CA & 15CB Process

Most overseas remittances from India require the remitter to file Form 15CA online on the income tax portal. Where the remittance exceeds ₹5 lakh per transaction (or in most capital account transactions), a Form 15CB certificate from a Chartered Accountant is also required, certifying that taxes have been correctly deducted.

Key Facts About NRI Repatriation Under FEMA

  • NRE account funds are 100% freely repatriable — no limit, no approvals, no tax on principal or interest in India
  • NRO account repatriation is limited to USD 1 million per financial year (approximately ₹8–8.5 crore), net of applicable Indian taxes
  • The USD 1 million NRO cap includes repatriation of both current income and capital account items (maturity proceeds, property sales) — not separate limits
  • The buyer of NRI-owned property must deduct TDS at source — no lower TDS without a Section 197 certificate from the Income Tax Department
  • Form 15CB from a CA is mandatory for most capital account remittances and remittances above ₹5 lakh — it certifies tax compliance to the bank
  • Gifts received in India from Indian residents in foreign exchange or Indian currency can be repatriated subject to USD 1 million cap and tax payment

Frequently Asked Questions — Repatriation of Assets

How much money can an NRI repatriate from India per financial year?
The repatriation limit depends on the source of funds. Funds in NRE and FCNR accounts are fully and freely repatriable without any limit. Funds in NRO accounts — including rental income, dividends, maturity proceeds, and sale proceeds of Indian assets — can be repatriated up to a combined limit of USD 1 million (approximately ₹8–8.5 crore at current rates) per financial year per individual, net of applicable Indian taxes. This limit applies to individuals — not to companies or other entities.
What is the difference between NRE and NRO accounts for repatriation?
NRE accounts hold foreign earnings remitted to India — the principal and interest are freely repatriable without any limit and are exempt from Indian income tax. NRO accounts hold India-sourced income (rent, dividends, interest, salary earned in India) — interest on NRO accounts is taxable at 30% TDS, and repatriation from NRO is subject to the USD 1 million annual cap after taxes are paid and Form 15CA/15CB is filed. NRE is the "outward-facing" account ideal for repatriation; NRO is for managing India-sourced income.
Can an NRI repatriate the full proceeds from selling Indian residential property?
An NRI can repatriate sale proceeds of residential property held in India, subject to the following conditions: (1) the property was acquired in compliance with FEMA (purchased with inward remittance or NRE/FCNR funds, or inherited legally); (2) repatriation is within the USD 1 million annual cap from the NRO account; (3) the buyer has deducted TDS — 12.5% for long-term capital gains on property (if held over 24 months) or 30% for short-term gains — and deposited it with the government; (4) applicable taxes have been paid and Form 15CA/15CB obtained. Repatriation is restricted to a maximum of 2 residential properties in a lifetime for capital account purposes.
What forms are required for an overseas remittance from India?
Form 15CA is an online declaration filed by the remitter on the Income Tax Department's portal (incometaxindiaefiling.gov.in) before making the remittance. It is required for all remittances (other than those covered by specific exemptions under Rule 37BB). Form 15CB is a certificate issued by a Chartered Accountant confirming that the applicable tax has been paid or will be deducted on the remittance — it is required where the remittance exceeds ₹5 lakh in a financial year or is a capital account transaction. The bank requires these forms before processing the overseas transfer. An incorrect or missing Form 15CB can result in the bank refusing the remittance or the NRI facing penalties.
Can an NRI repatriate money received as inheritance from an Indian relative?
Yes, with some conditions. NRIs can repatriate assets inherited from an Indian resident (including cash, bank deposits, and sale proceeds of inherited property) subject to: (a) providing proof of the inheritance (registered will, probate, or succession certificate); (b) paying applicable taxes on any income arising from the inherited assets (e.g., capital gains on sale of inherited property); (c) ensuring repatriation is within the USD 1 million annual NRO cap for most assets. Inherited immovable property repatriation is further subject to FEMA restrictions — commercial property repatriation may have additional limits, and repatriation of agricultural land proceeds is not permitted under FEMA.

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