Repatriation — the transfer of funds from India to a foreign country — is governed by the Foreign Exchange Management Act, 1999 (FEMA) and RBI regulations. NRIs and Persons of Indian Origin (PIOs) can repatriate funds from India subject to specified conditions and limits. The process requires understanding the type of account from which funds are being transferred and the nature of the income.
Repatriation from NRE vs NRO Accounts
| Feature | NRE Account | NRO Account |
|---|---|---|
| Currency | Indian Rupees | Indian Rupees |
| Source of funds | Foreign income / earnings abroad | India-source income (rent, dividends, etc.) |
| Repatriation of principal | Freely repatriable | Up to USD 1 million per financial year |
| Repatriation of interest | Freely repatriable | Freely repatriable (after tax deduction) |
| Taxability in India | Interest exempt | Interest taxable in India |
The USD 1 Million Annual Limit for NRO Repatriation
NRIs can repatriate up to USD 1 million per financial year from NRO accounts (from current income and balances). This limit is per individual and covers all capital account transactions. Repatriation requires:
- Form 15CA: Online declaration by the remitter on the Income Tax portal (filed before remittance).
- Form 15CB: Certificate from a Chartered Accountant certifying that applicable taxes have been paid or provided for on the amount being remitted.
- Documentary evidence of the source of funds (sale agreement, rental income receipts, ITR copies, etc.).
Form 15CB is not required for payments covered under specified exempt categories under Rule 37BB.
Repatriation of Sale Proceeds of Indian Property
Repatriation of proceeds from sale of immovable property (acquired by NRI under FEMA rules) is permitted up to the original purchase price in foreign currency, subject to:
- The property was purchased with inward remittance or from NRE/FCNR account funds.
- Repatriation of sale proceeds of only two residential properties allowed during lifetime.
- Capital gains tax fully paid in India before repatriation.
- Form 15CA / 15CB required.
Liberalised Remittance Scheme (LRS) for Resident Indians
While the above covers NRI repatriation, Resident Indians can remit up to USD 250,000 per financial year under the Liberalised Remittance Scheme (LRS) for permitted purposes — education, travel, maintenance of close relatives abroad, investment in overseas securities, etc. LRS remittances are subject to TCS (Tax Collected at Source) at 20% (above ₹7 lakhs, except for education and medical purposes).