Repatriation of Assets – ND Savla & Associates
Repatriation refers to the transfer of funds or income by an NRI (Non-Resident Indian) or PIO (Person of Indian Origin) from balances lying in a Non-Resident (Ordinary) Rupee Account (NRO) to either:
At ND Savla & Associates, we assist NRIs and PIOs in evaluating eligibility, ensuring tax is correctly discharged, and handling complete documentation with the bank and authorities.
1. Typical sources of assets / funds in India
Funds or assets held in India by an NRI/PIO generally arise from:
a. Assets or funds already held in India at the time of migration b. Assets or funds received by way of inheritance c. Overseas remittances sent to India and invested or parked as assets d. Income generated from the above (rent, interest, capital gains, etc.)
All of the above can potentially be repatriated, subject to FEMA regulations, income-tax compliance, and banking procedures.
2. What can be repatriated and to what extent?
Below is a practical view of what NRIs/PIOs can remit outside India and the applicable limits.
i) Current Income – No overall limit
Current income (earned in the past or current year) such as:
can be repatriated without any monetary ceiling, subject to payment of applicable Indian taxes and proper documentation.
ii) Sale proceeds of immovable property (commercial, residential, land etc.)
A. Property acquired in foreign exchange (through inward remittance, FCNR balance or NRE balance)
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The entire sale proceeds are freely repatriable.
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However, for residential property, full repatriation of sale proceeds is allowed only for up to two residential properties.
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Sale proceeds from the third residential property onwards must be repatriated under the USD 1 million scheme.
B. Property acquired otherwise than in foreign exchange (purchased using rupee funds, inherited, etc.)
iii) Other funds / assets (besides current income and property)
Funds in the NRO account such as:
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Sale/redemption proceeds of fixed deposits, shares, mutual funds, bonds, etc.
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Sale proceeds of inherited assets (other than immovable property covered above)
can be repatriated up to USD 1 million per financial year.
Note 1 – Investments tagged as non-repatriable
Where an NRI has invested in shares, securities or other assets under a non-repatriable scheme, certain banks may not allow repatriation of the sale proceeds.
Historically, some banks treated such proceeds as eligible under the USD 1 million scheme. Recently, a few banks have started placing restrictions and declining repatriation of such funds.
Practical takeaway: Always check with your Authorised Dealer (AD) Bank first and seek professional advice before initiating repatriation of such investments.
Note 2 – Agricultural land and restricted properties
Under FEMA, NRIs are not permitted to purchase:
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Agricultural land
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Farmhouses
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Plantation property
However, they may continue to hold such property if:
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Acquired by inheritance, or
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Acquired when they were Resident in India, subject to FEMA conditions.
If a property has been acquired in any manner that violates law, or is otherwise not in compliance with FEMA, repatriation of sale proceeds may not be permissible.
Practical takeaway: Verify that ownership and mode of acquisition are clean and compliant before planning repatriation.
3. Documentation required for repatriation
For remitting funds from an NRO account to an NRE account or overseas bank, the following documents are generally required by the AD Bank:
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Form 15CA
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Form 15CB (with UDIN)
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Certificate issued by a Chartered Accountant.
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The CA certifies that applicable taxes on the amount proposed to be repatriated have been correctly computed/paid.
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Uploaded by the CA on their Income-tax portal with UDIN.
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Form A2 & Outward Remittance Form
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FEMA Declaration & Transfer Request
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Any additional documents as required by the AD Bank
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e.g. sale deeds, bank statements, inheritance documents, tax challans, computation workings, etc.
ND Savla & Associates regularly assists clients with preparing tax workings, Form 15CB, coordinating with banks and ensuring all formalities are completed correctly.
4. Repatriation beyond the standard limits
If you need to remit more than USD 1 million in a financial year (where that cap applies), you may apply to the Reserve Bank of India (RBI) for specific approval.
RBI may allow higher remittances in genuine hardship situations such as:
We help clients prepare applications and supporting papers wherever a special RBI approval is required.
5. Important practical points
i. Tax payment is mandatory All repatriation is subject to payment of applicable Indian taxes on the underlying income or capital gains.
ii. Source of funds in NRO must be legitimate Balances in the NRO account should arise from legitimate dues receivable in India. Borrowed funds or arbitrary transfers from another NRO account (where not supported by genuine income or documentation) are not eligible for repatriation. Example: If Mr. A (NRI) transfers ?10 lakh from his NRO to Mrs. A’s NRO (also NRI), Mrs. A cannot repatriate this amount merely on that basis.
iii. Use-it-or-lose-it yearly limit If you do not utilise your USD 1 million limit in a financial year, it cannot be carried forward to the next year.
iv. No cap on number of transactions, but yearly cap still applies Multiple remittances are allowed, but the aggregate must stay within the applicable yearly limit. Further, all such remittances from NRO to NRE / overseas account in a financial year must be routed through a single AD Bank.
v. Credits from resident close relatives RBI permits gifts from resident close relatives to be credited to an NRI’s NRO account up to USD 250,000. In practice, this indirectly caps repatriation of such gifted amounts. Additionally, one must consider possible TCS (Tax Collected at Source) implications on such outward remittances from the resident’s side under LRS and check with the bank accordingly.
vi. NRE account balances are fully repatriable Balances in the NRE account remain freely repatriable without limit, subject to standard banking procedures and KYC.
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