Repatriation of Assets

Funds in NRE (Non-Resident External) and FCNR accounts are freely and fully repatriable — there is no annual limit. For NRO (Non-Resident Ordinary) accounts, the annual repatriation limit is USD 1 million (approximately ₹8 crore) per financial year, net of applicable taxes. This limit applies to the total repatriation from NRO accounts including current income such as rent, dividends and interest.

Form 15CA is a declaration filed by the remitter on the income tax portal confirming the nature of the payment and tax withheld. Form 15CB is a certificate issued by a Chartered Accountant confirming the taxability of the remittance and the applicable rate under the Income Tax Act or DTAA. Banks require both documents before processing remittances above prescribed thresholds — they will not release the funds without them.

Yes, subject to conditions. An NRI can repatriate the sale proceeds of residential property (up to 2 properties) within the USD 1 million NRO annual limit, provided: the property was acquired in accordance with FEMA rules; TDS has been deducted by the buyer under Section 195/194-IA; capital gains tax has been paid; and Form 15CA/15CB is filed. Agricultural land, farmhouses and plantation properties have separate restrictions.

When an NRI sells Indian property, the buyer is required to deduct TDS under Section 195 at 20% on long-term capital gains or 30% on short-term capital gains — on the entire sale consideration, not just the gains. The NRI can then file an income tax return to claim a refund of excess TDS after computing the actual capital gains and applicable exemptions. We handle both the TDS compliance and the ITR for the capital gains.

An NRO-to-NRE transfer moves funds from the taxable NRO account to the fully repatriable and tax-exempt NRE account. Once funds are in the NRE account, they can be repatriated abroad freely at any time without annual limits or documentation. The transfer requires a CA certificate (similar to Form 15CB) confirming the tax status of the NRO funds. Banks use this route for NRIs who want to consolidate Indian funds for future repatriation.

Funds received by an NRI as inheritance from a Resident Indian, or as a gift from a close relative, can be repatriated from the NRO account within the USD 1 million annual limit. The nature of the inheritance or gift must be documented, applicable tax (if any) on the amount must be paid, and the standard Form 15CA/15CB process applies. We advise on the documentation required for inheritance-based repatriations.

Yes. Rental income received in India from Indian property is credited to the NRO account (after TDS deduction by the tenant). It can be repatriated from NRO abroad within the USD 1 million annual limit. TDS is deducted at 31.2% by the tenant on NRI rental income. Filing a return allows the NRI to claim a refund if the effective tax rate is lower, and the refund too can be repatriated from the NRO account.

Contact N D Savla & Associates in Panaji, Goa. We assess the source and tax status of your funds, ensure all Indian taxes are correctly paid, issue the Form 15CB certificate, file Form 15CA online, and provide your bank with the complete documentation package to process the remittance — smoothly and without delay.