The transfer of funds/income byNRI (Non-Resident Indian) orPIO (Person of Indian Origin)from the balances held in their Non Resident(Ordinary) Rupee account (NRO a/c) to his/her Non Resident External account(NRE a/c) or overseas bank account is termed as Repatriation.
1.Sourcesof Assets/Funds held in India by NRIs or PIOs:
a. Assets/Funds held when they migrated from India; or
b. Inheritanceof Assets/ Funds; or
c. Assets/Funds arising out of overseas remittances made to India for investment purpose or otherwise; or
d. Incomeearned on such Assets/Funds held in India.
Over theyears, the Indian Government has substantially liberalized remittances ofincome and assets.
2.Whatand how much NRIs/PIOs are permitted to repatriate from India?
| Sr. No (A) | What can be repatriated (B) | Limit for repatriation (C) |
| i) | Current Income (earned in past or present year): Income in the nature of salary, pension, dividend, interest, rent etc. | No limit |
| ii) | Repatriation of funds/assets other than immovable property: Capital funds held in NRO a/c from sale proceeds of assets other than immovable property such as Fixed Deposit, Mutual Funds, Shares etc. including inheritance | USD 1 million per Financial Year |
| iii) | Repatriation of sale proceeds of immovable property (other than agricultural land/farm house/plantation property) | |
| A | Property acquired in Forex (through inward remittances, FCNR or NRE balance) | Entire sale proceed is freely repatriable. However, in case of residential property, repatriation of sale proceed shall be restricted to two such properties. Sale proceeds from 3rd property onwards shall be repatriable under USD 1 Million Scheme |
| B | Property acquired otherwise than in Forex (through rupee funds/inheritance etc.) | USD 1 million per Financial Year |
*As perthe FEMA law, NRIs are not allowed to acquire agricultural land/farmhouse/plantation property in India.
3.DocumentaryEvidence:
The remitter of funds is required to submit followingdocuments to AD Bank for remittance of funds to NRE a/c orOverseasbank account:
a.Form 15CA:
Undertakinggiven by the remitter, submitted on the Tax Department website and signed bythe remitter
b.Form 15CB:
Certificateto be obtained from a Chartered Accountant confirming that applicable taxeshave been paid on the remittances.
c. Form A2/Outward Remittance Form in case of transfer of funds fromNRO a/c to overseas bank account.
d. FEMA Declaration/Transfer Request in case of transfer of fundsfrom NRO a/c to NRE a/c
e. Any otherdocuments required by AD Bank
4.Specialapproval from RBI:
RBI mayapprove repatriation beyond limits specified in case where hardship will becaused to a person if remittance from India is not made to such a person.Accordingly, RBI may grant permission for medical purpose, education, homepurchase or similar requirements at their discretion.
5.GeneralPoints:
a. Everyrepatriation is subject to payment of applicable taxes in India.
b. Currentincome earned in any year is permitted to be repatriated in the same year or inany subsequent years cumulatively.
c. Balanceheld in NRE a/c is freely repatriable without any limit.
d. Remittancesfrom NRO a/c to NRE a/c or overseas bank account can only be done through asingle AD Bank in a particular Financial Year.
e. Balancesheld in the NRO a/c should arise from his/her legitimate dues receivable inIndia and not by borrowing from any other person or transfer from any other NROaccount.
f. If yearlylimit of USD One Million is not utilized, then the same cannot be utilized insubsequent years.
g. RBI hasinstructed that gifts received from resident relatives is permitted to becredited to NRO a/c of the NRI up to USD 250,000 only and thus in our opinion,repatriation of such receipt by NRI is indirectly limited up to this amount.
Updated 01/2023
