TL;DR – Quick Summary
Repatriation the transfer of funds held in Indian bank accounts to overseas bank accounts in foreign currency operates under materially different rules for NRE and NRO accounts, and understanding this distinction is essential for any NRI managing funds in India. NRE (Non-Resident External) account balances comprising funds originating from foreign currency remittances are freely and fully repatriable without any limit, without prior RBI approval, and without specific tax documentation requirements (since NRE interest is tax-exempt in India). NRO (Non-Resident Ordinary) account balances comprising Indian-source income such as rent, pension, dividends, and sale proceeds from Indian assets are repatriable subject to a cap of USD 1 million per financial year (April to March), net of applicable Indian taxes, and require a chartered accountant's certificate (Form 15CB) and a self-declaration (Form 15CA) filed with the Income Tax Department through the TRACES portal before the remittance can be processed by the Authorized Dealer bank. Repatriation of sale proceeds from Indian immovable property has additional specific rules depending on whether the property was purchased with foreign funds or NRE account funds versus Indian rupee funds.
What Is Repatriation and Why the Rules Differ by Account Type
Repatriation, in the context of NRI banking, refers to the transfer of funds held in Indian rupee accounts in India to the NRI's overseas bank account in the relevant foreign currency (USD, GBP, EUR, AUD, etc.), typically involving a simultaneous currency conversion from INR to the target foreign currency. The regulatory treatment of repatriation under FEMA (Foreign Exchange Management Act, 1999) is determined by the origin of the funds being repatriated specifically, whether the funds originated from foreign currency sources (overseas income remitted to India) or from Indian currency sources (income earned in India).
This origin-based distinction is the foundational principle of the NRI account framework. NRE accounts hold funds that originated as foreign currency the NRI earned income abroad, remitted it to India, and it was converted to INR upon credit to the NRE account. Because these funds originated as foreign currency that was voluntarily brought into India, they are treated as freely repatriable: the NRI has a regulatory right to take those funds back out at any time without restriction. NRO accounts hold funds that originated as INR from Indian sources rental income from Indian property, pension payments from Indian employers, dividends from Indian investments, interest on Indian bank deposits, and sale proceeds from Indian assets sold in the domestic market. These funds are Indian-source income that has benefited from India's economic environment, infrastructure, and legal system, and India's regulatory framework accordingly applies conditions a USD 1 million per year cap and tax compliance verification before allowing them to be moved abroad.
NRE Account Repatriation: Fully Free and Unrestricted
Repatriation from an NRE account is the simplest and most permissive category of NRI fund transfer. The RBI's master direction on NRE accounts explicitly states that balances in NRE savings and fixed deposit accounts are freely repatriable without any limit on the amount, without any prior permission from the RBI, and without any requirement for tax documentation. This free repatriability is a fundamental characteristic of the NRE account and one of its primary attractions for NRIs who want to maintain India-linked savings while retaining full flexibility to access those funds abroad at any time.
The repatriation from an NRE account is processed by the NRI's Authorized Dealer bank as a straightforward outward remittance the bank debits the NRE account, converts the INR balance to the target foreign currency at the prevailing spot rate, and sends an international wire transfer (SWIFT or the equivalent cross-border payment rail) to the NRI's designated overseas bank account. The remittance can be initiated through the bank's net banking portal, mobile app, branch visit, or written instruction to the NRI desk. No Form 15CA or 15CB is required for NRE account repatriation the freely repatriable status of NRE funds exempts them from the tax documentation requirements applicable to NRO transfers. However, maintaining records of the original remittances that funded the NRE account is advisable for audit trail purposes, particularly for NRIs who are US tax residents and must demonstrate the foreign-source nature of repatriated funds on their US tax filings.
FCNR(B) deposit maturity proceeds are also freely repatriable since FCNR deposits are maintained in the original foreign currency throughout the tenure, the maturity proceeds are already in foreign currency and can be remitted directly to the NRI's overseas account without any INR conversion step or repatriation limit application. FCNR proceeds repatriation is among the cleanest fund flows in the NRI banking framework.
NRO Account Repatriation: The USD 1 Million Annual Limit
Repatriation from an NRO account is permitted up to USD 1,000,000 (or equivalent in any freely convertible foreign currency) per financial year April 1 to March 31 net of applicable Indian taxes. This limit was liberalized to USD 1 million by the RBI's Liberalized Remittance Scheme for NRO accounts (a provision under FEMA's Non-Resident guidelines) and represents a substantial annual repatriation allowance sufficient for most NRI financial needs. The limit applies to the aggregate repatriation from all NRO accounts held by the individual NRI across all Authorized Dealer banks it is an individual limit, not a per-bank limit, and must not be exceeded in aggregate across all repatriation transactions in a single financial year.
The "net of applicable taxes" requirement means that before repatriating NRO funds, the NRI must ensure that all Indian income tax liability on the funds being repatriated has been paid or provided for. This typically involves paying advance tax or self-assessment tax through the income tax portal, obtaining a Tax Residency Certificate (TRC) from the tax authorities in the country of residence if claiming DTAA benefits, and obtaining a Form 15CB certificate from a practicing Indian chartered accountant confirming that the appropriate taxes have been paid or are not applicable. Without this documentation, the Authorized Dealer bank cannot process the remittance — under RBI guidelines, banks are required to obtain Form 15CA and Form 15CB before processing outward remittances from NRO accounts (with certain exemptions for smaller amounts).
The USD 1 million limit resets at the beginning of each financial year (April 1). NRIs with large NRO balances who need to repatriate more than USD 1 million can plan repatriations across multiple financial years, optimizing timing based on their tax position and currency exchange rate outlook. Alternatively, prior RBI permission can be sought for repatriation above the USD 1 million limit in specific documented circumstances, though this route requires detailed application and documentation of the funds' origin and tax status.
Tax Documentation Requirements: Form 15CA and 15CB
The Form 15CA and Form 15CB requirements are the central compliance obligations for NRO account repatriation and often the most confusing element of the process for NRIs navigating it for the first time. Form 15CB is a certificate issued by a Chartered Accountant (CA) in India who has verified that the funds being remitted are net of applicable Indian taxes and that the remittance complies with FEMA and Income Tax Act provisions. The CA prepares Form 15CB after reviewing the NRI's Indian income, applicable DTAA provisions, and tax payment records. The CA certifies the nature of the remittance, the applicable tax rate (considering DTAA if applicable), the amount of tax deducted or payable, and the fact that the remittance does not contravene any provision of the Income Tax Act or FEMA.
Form 15CA is a self-declaration filed by the remitter (the NRI) on the Income Tax Department's TRACES portal, incorporating the details from the CA's Form 15CB and declaring that the remittance complies with the applicable laws. Form 15CA must be filed online at traces.gov.in before the remittance is processed, and the Authorized Dealer bank requires both the Form 15CA acknowledgment number and the original signed Form 15CB from the CA before initiating the outward remittance. Certain remittance categories including educational expenses, medical expenses, and remittances below INR 5 lakh in a financial year are exempt from the Form 15CB requirement (though Form 15CA may still be required in a simplified format for some of these). The specific exemption categories are defined in Rule 37BB of the Income Tax Rules and have been updated periodically; NRIs should verify current exemption provisions with their Indian CA before initiating repatriation.
The Repatriation Process: Step-by-Step
The practical step-by-step process for repatriating funds from an NRO account is as follows. First, determine the amount to be repatriated and verify that it falls within the USD 1 million annual limit. Second, engage a qualified Indian Chartered Accountant to review the income tax position — the CA will assess the nature of the funds (whether they represent capital gains, rental income, pension, dividends, or other income categories), the applicable tax rate, whether any DTAA provision reduces the Indian tax liability, and any advance tax or self-assessment tax payable before repatriation. Third, pay any outstanding Indian income tax liability on the funds through the Income Tax Department's Challan 280 payment system at incometax.gov.in, and obtain payment proof. Fourth, the CA prepares and provides Form 15CB after verifying the tax position and payment. Fifth, the NRI files Form 15CA online at the TRACES portal (traces.gov.in), using the Form 15CB details provided by the CA. Form 15CA generates an acknowledgment number. Sixth, submit the repatriation request to the Authorized Dealer bank with the Form 15CA acknowledgment number and the original Form 15CB, along with the standard remittance instruction specifying the overseas bank account details (IBAN or SWIFT and account number), the amount and currency, and the purpose of remittance. Seventh, the bank processes the remittance converting INR to the target foreign currency at the prevailing spot rate and sending an international wire transfer. Processing time after submission of complete documentation is typically two to five business days.
Repatriating Sale Proceeds from Indian Property
Repatriation of sale proceeds from immovable property in India is subject to specific rules that depend on how the property was originally acquired. Property purchased by the NRI using NRE account funds or foreign currency remittances may be repatriated on a fully repatriable basis the sale proceeds (net of capital gains tax) can be credited to the NRE account and freely repatriated abroad. However, repatriation from property sale is limited to a maximum of two residential properties in a lifetime the proceeds from the sale of a third or subsequent property must be credited to the NRO account and are subject to the USD 1 million annual repatriation limit. Property acquired through inheritance from a resident Indian, purchased using NRO account funds, or acquired before the NRI left India is non-repatriable the sale proceeds must be credited to the NRO account and are repatriable only within the USD 1 million annual limit after applicable taxes are paid.
Capital gains on Indian property sales both short-term (held less than 24 months for immovable property) and long-term (held 24 months or more) are subject to Indian capital gains tax. Long-term capital gains on residential property are taxed at 12.5% (reduced from 20% with indexation benefit following the 2024 Union Budget amendment) under Section 112. TDS is typically deducted by the buyer at the time of property sale at the rate of 20% on the sale proceeds for NRI sellers (or 30% for commercial property) the TDS certificate (Form 16B) received from the buyer is a key document for the repatriation tax verification process. The actual capital gains tax liability may be lower than the TDS deducted, and NRIs can file an Indian income tax return to claim a refund of excess TDS.
Repatriating Inheritance and Gifts Received in India
NRIs who receive inheritance or gifts in India whether cash, property, or financial assets can repatriate these funds subject to applicable rules. Cash inheritance received in India is credited to the NRO account and is repatriable within the USD 1 million per financial year limit, net of applicable taxes. Indian inheritance (estate) tax was abolished in India in 1985 and does not apply, but the inherited amount may be subject to income tax considerations in the NRI's country of residence (the US, UK, and other countries have their own estate and inheritance tax frameworks that apply to worldwide assets of their residents). Property inheritance follows the property repatriation rules described above inherited property can be sold and the proceeds repatriated from the NRO account within the annual limit.
Gifts received from non-relatives in India in excess of INR 50,000 in a financial year are taxable in India as income in the hands of the recipient under Section 56(2) of the Income Tax Act. Gifts from defined relatives (spouse, siblings, parents, etc.) are exempt from this provision regardless of amount. NRIs receiving gifts should ensure the gift is properly documented (a gift deed is advisable for significant amounts) and the tax position is verified with an Indian CA before crediting to the NRO account and initiating repatriation.
FBAR and FATCA Implications for US-Based NRIs
NRIs who are US tax residents including US citizens, green card holders, and individuals meeting the substantial presence test have US reporting obligations for their Indian bank accounts that are separate from and in addition to the Indian FEMA repatriation framework. The Foreign Bank Account Report (FBAR), filed annually with the Financial Crimes Enforcement Network (FinCEN) using Form FinCEN 114 through the BSA E-Filing System, is required for any US person whose aggregate foreign financial account balances exceed USD 10,000 at any point during the calendar year. NRE, NRO, FCNR, and any Indian savings, fixed deposit, or demat accounts all count toward this aggregate threshold. The FBAR filing deadline is April 15 with automatic extension to October 15. Failure to file FBAR for an account meeting the threshold is a civil violation with penalties up to USD 10,000 per non-willful violation and up to USD 100,000 or 50% of the account balance per willful violation severe consequences that make compliance non-negotiable.
FATCA (Foreign Account Tax Compliance Act) additionally requires US persons to report specified foreign financial assets on Form 8938, attached to the annual US federal income tax return (Form 1040), when aggregate foreign account values exceed certain thresholds (USD 50,000 for single filers living in the US; USD 200,000 for single filers living abroad). FATCA also requires Indian financial institutions to report accounts held by US persons to the Indian government, which exchanges this information with the IRS under the India-US FATCA intergovernmental agreement. NRIs repatriating large sums from India should ensure that the repatriation is properly documented in their US tax filings, that the source of funds is clearly identified (return of capital from NRE accounts or taxable income from NRO accounts), and that any Indian taxes paid are appropriately claimed as foreign tax credits on the US return to avoid double taxation.
Common Mistakes and How to Avoid Them
The most common errors NRIs make in the repatriation process include: failing to segregate NRE and NRO fund sources correctly, leading to inadvertent commingling that complicates the repatriation documentation; attempting to repatriate NRO funds without obtaining Form 15CB from a CA, leading to bank rejection of the remittance instruction; exceeding the USD 1 million NRO repatriation limit in a financial year without prior RBI permission; using a resident relative's bank account as an intermediary for repatriation a practice that is specifically prohibited under FEMA and constitutes a violation; failing to report Indian accounts on FBAR and Form 8938 to US authorities when required; and repatriating funds without accounting for the Indian capital gains tax liability on the underlying assets, leading to incorrect tax filings and potential penalties.
Avoiding these mistakes requires two things: engaging an Indian CA with NRI tax expertise for guidance on each repatriation, particularly for significant amounts or complex asset sales; and maintaining detailed records account statements, original remittance proofs, property purchase documents, capital gain computation worksheets, and Form 15CB certificates for every repatriation transaction, retained for a minimum of seven years to cover Indian and US tax assessment periods.
Frequently Asked Questions
What is the difference between NRE and NRO account repatriation rules?
NRE account balances are freely and fully repatriable with no limit, no prior RBI permission, and no tax documentation requirement. NRE accounts hold funds that originated as foreign currency (overseas income remitted to India), and these funds can be transferred back abroad at any time and in any amount without restriction. NRO account balances are repatriable subject to a cap of USD 1 million per financial year, net of applicable Indian taxes, with mandatory Form 15CA and Form 15CB documentation required before the Authorized Dealer bank can process the remittance. NRO accounts hold Indian-source income (rental income, pension, dividends, sale proceeds from domestic Indian assets) and the USD 1 million limit reflects India's regulatory interest in ensuring tax compliance before such funds leave the country.
How much money can an NRI repatriate from India per year?
From NRE accounts, an NRI can repatriate an unlimited amount per year there is no cap on NRE fund repatriation. From NRO accounts, the limit is USD 1 million (or equivalent in any freely convertible foreign currency) per financial year (April 1 to March 31), net of applicable Indian income taxes. This USD 1 million annual limit applies in aggregate across all NRO accounts held by the individual at any Authorized Dealer bank it is an individual limit, not a per-account or per-bank limit. Repatriation above USD 1 million from NRO accounts in a single financial year requires prior RBI approval, which is available through application with documentation of the funds' origin and tax compliance status. From FCNR accounts, repatriation of maturity proceeds is unrestricted, as FCNR funds are foreign-currency-denominated and freely repatriable.
What is Form 15CA and 15CB, and do I always need them?
Form 15CB is a certificate issued by a qualified Indian Chartered Accountant verifying that the funds being repatriated from India are net of applicable Indian taxes and that the remittance complies with FEMA and Income Tax Act provisions. Form 15CA is a self-declaration filed by the remitter (the NRI) on the Income Tax Department's TRACES portal, incorporating the details from the Form 15CB. Both documents are required for repatriation from NRO accounts in most circumstances. However, specific exemptions exist defined in Rule 37BB of the Income Tax Rules for certain remittance categories (educational expenses, medical expenses, specific low-value transfers) where Form 15CB is not required, though a simplified Form 15CA may still be needed. For repatriation from NRE accounts, neither form is required. Always verify the current exemption list with your Indian CA before initiating repatriation, as the exemption categories are updated periodically and the consequences of processing a remittance without required documentation are significant the bank will reject the remittance and your tax compliance record may be affected.
Can an NRI repatriate money from India using a foreign currency account?
Yes. FCNR(B) accounts Foreign Currency Non-Resident (Bank) deposits hold funds in the original foreign currency (USD, GBP, EUR, AUD, CAD, CHF, JPY, or SGD) throughout the deposit tenure. At maturity, the principal and interest are payable in the original foreign currency and are freely repatriable to the NRI's overseas account without any limit or tax documentation requirement. RFC (Resident Foreign Currency) accounts held by returning NRIs maintaining foreign currency deposits after returning to India can be repatriated without limit when the account holder re-establishes NRI status on a subsequent departure from India. These foreign-currency-denominated accounts simplify repatriation by eliminating the currency conversion step and the associated FEMA documentation requirements that apply to NRO account repatriation, making them preferable account structures for NRIs who anticipate frequent repatriation needs.
How do I repatriate money from the sale of my Indian property?
Repatriating property sale proceeds from India depends on how the property was originally acquired. If the property was purchased using NRE account funds or direct foreign currency remittances and the NRI has not previously repatriated proceeds from the sale of two other residential properties the net sale proceeds (after payment of applicable capital gains tax) can be credited to the NRE account and repatriated freely without limit. If the property was inherited, purchased using NRO account funds, or purchased using pre-NRI rupee savings, the sale proceeds must be credited to the NRO account and are repatriable within the USD 1 million annual limit after taxes. The buyer of the property is required to deduct TDS at 20% (for long-term capital gains) or 30% (for short-term) from the sale proceeds at source, providing the NRI with Form 16B as evidence of TDS deduction. The NRI's CA will prepare Form 15CB based on the capital gains computation, and the NRI files Form 15CA before the bank processes the repatriation instruction. Filing an Indian income tax return after the sale is advisable regardless, as the TDS deducted may exceed the actual capital gains tax liability, entitling the NRI to a tax refund.
