Repatriation Rules for NRIs — Complete 2025 Guide (FEMA + Tax + Banking + Step-by-Step Process)

Introduction: The $200,000 Stuck in India (A Real NRI Story)

Priya’s nightmare (real case, name changed):

Priya, an NRI in Canada since 2015, sold her Mumbai flat in March 2024 for ₹1.6 crores (~$200,000).

She was thrilled—until she tried to transfer the money to Canada.

What went wrong:

❌ Mistake 1: Sale proceeds deposited in old Savings Account (not NRO)
❌ Mistake 2: Didn’t file Income Tax Return for capital gains
❌ Mistake 3: No Form 15CA/15CB filed
❌ Mistake 4: Buyer deducted TDS under wrong section (30% instead of 20%)
❌ Mistake 5: Lost purchase deed from 2008 (can’t prove capital gains calculation)

Result:

Bank refused to process repatriation (FEMA non-compliance)
Had to hire CA + lawyer: ₹1,20,000 fees
Filed 3 years of backdated ITRs (late fees: ₹15,000)
Applied for TDS correction (8-month wait)
Applied for compounding of FEMA violation (₹50,000)
Total delay: 14 months
Total cost: ₹1,85,000+ stress

The irony?
All 5 mistakes were 100% avoidable with basic knowledge of NRI repatriation rules.

This happens to 40%+ of NRIs who:

❌ Don’t understand NRE vs. NRO account differences
❌ Mix personal savings with sale proceeds
❌ Skip Form 15CA/15CB filing
❌ Don’t maintain property purchase documents
❌ Forget to pay capital gains tax before repatriation
❌ Use wrong bank accounts for Indian income
❌ Assume “money is mine, I can send it anytime”

The truth:

Repatriation from India is 100% legal and fast—IF you follow FEMA + Tax + Banking rules.

Without compliance:

🚫 Banks block transfers
🚫 RBI penalties (up to 3x amount + ₹2L + ₹5K/day)
🚫 Income Tax notices
🚫 Money stuck for months/years
🚫 Legal complications

This comprehensive guide covers:

What is repatriation (FEMA definition)
NRI bank accounts explained (NRE, NRO, FCNR)
Repatriation limits (how much you can send)
Form 15CA & 15CB (detailed explanation)
Documents required (complete checklist)
Tax compliance before repatriation
Step-by-step repatriation process
Common mistakes and how to avoid them
Property sale repatriation (special rules)
DTAA benefits for repatriation
Bank processing times and fees
When to consult professionals

1. What is Repatriation Under FEMA? (Legal Definition)

Simple Definition:

Repatriation = Legally transferring money from India to a foreign country in compliance with FEMA (Foreign Exchange Management Act).

What Can Be Repatriated:

✅ Salary (earned in India, now sending abroad)
✅ Rental income (from Indian property)
✅ Dividends (from Indian shares/mutual funds)
✅ Interest income (from NRO accounts)
✅ Investment proceeds (sale of shares, MF, property)
✅ Property sale proceeds
✅ Business income (profits from Indian business)
✅ Gift received (from relatives in India)
✅ Maturity of NRE/FCNR deposits
✅ Capital gains
✅ Inheritance
✅ Pension

Legal Framework Governing Repatriation:

Law/Regulation	What It Governs
FEMA, 1999	Overall foreign exchange transactions
RBI Master Directions	Account types, limits, permissible transactions
FEMA (Permissible Capital Account Transactions) Regulations	Capital account repatriation
Income Tax Act	Tax compliance before repatriation
Form 15CA/15CB	Reporting and certification for outward remittances
LRS (Liberalised Remittance Scheme)	For residents, NOT NRIs

Key Principle:

Not all money in India can be repatriated automatically.
It depends on:

Which account it’s in (NRE/NRO/FCNR)
Source of funds
Tax compliance
Annual limits (for NRO)

2. Types of NRI Bank Accounts (Critical for Repatriation)

Your repatriation rights entirely depend on which account you use.

Account Type 1: NRE (Non-Resident External) Account

Purpose: Park foreign earnings in India

Currency: INR (converted from USD/GBP/EUR at deposit)

Repatriation:

✅ Unlimited (both principal + interest)
✅ Fully repatriable anytime
✅ No Form 15CA/15CB needed
✅ No annual cap

Taxation:

✅ Interest: Tax-free
✅ No TDS
✅ No ITR required (if only income)

Best For:

Foreign salary/income you want to park in India temporarily
Buying property in India (easy repatriation of sale proceeds later)
Investments with full repatriation intent

Example:
NRI in US deposits $50,000 (₹41L) from US salary into NRE account.
After 3 years, wants to send back to US.
→ Full ₹41L + interest repatriable, no questions asked, no 15CA/CB.

Account Type 2: NRO (Non-Resident Ordinary) Account

Purpose: Manage India-sourced income (rent, dividends, pension, sale proceeds)

Currency: INR

Repatriation:

⚠️ Limited to $1 million per financial year (April-March)
⚠️ Requires Form 15CA + 15CB (CA certificate)
⚠️ Tax compliance mandatory
⚠️ Documents needed (source proof)

Taxation:

❌ Interest: Taxable @30% (TDS ~31.2%)
❌ Must file ITR if income >₹2.5L
❌ Tax must be paid before repatriation

Best For:

Rent collection from Indian property
Pension from Indian employer
Dividends/interest from Indian investments
Property sale proceeds (initial parking)

Example:
NRI rents flat for ₹6L/year → deposits in NRO.
After 2 years, balance: ₹12L.
Wants to send to Dubai.
→ Can repatriate up to $1M/year (₹8.3Cr currently), needs 15CA/15CB + tax payment proof.

Account Type 3: FCNR (Foreign Currency Non-Resident) Account

Purpose: Fixed deposit in foreign currency (avoid exchange rate risk)

Currency: USD, GBP, EUR, JPY, CAD, AUD, SGD

Repatriation:

✅ Unlimited (both principal + interest)
✅ Fully repatriable
✅ No Form 15CA/15CB needed
✅ No currency conversion risk

Taxation:

✅ Interest: Tax-free
✅ No TDS

Best For:

Long-term savings (1-5 years)
Avoiding INR fluctuation
Planning future repatriation (e.g., buying home abroad)

Example:
NRI deposits $100,000 in FCNR USD account for 3 years @4% interest.
Maturity: $112,000.
→ Full $112,000 repatriable to any country, no tax, no 15CA/CB.

Comparison Table:

Feature	NRE	NRO	FCNR
Source of funds	Foreign earnings	India-sourced income	Foreign earnings
Interest taxable?	No	Yes (30%)	No
Repatriation limit	Unlimited	$1M/year	Unlimited
Form 15CA/CB	Not needed	Needed	Not needed
Currency	INR	INR	Foreign currency
Best for	Parking foreign salary temporarily	Rent, pension, India income	Long-term FD, no INR risk

3. Repatriation Limits (How Much Can You Send Abroad?)

From NRE Account:

Limit: ✅ Unlimited

Conditions:

None (it’s your foreign income)
Can repatriate anytime, any amount
No Form 15CA/15CB needed
No CA certificate

Example: Repatriate ₹5 crores from NRE → No issues, direct transfer.

From NRO Account:

Limit: ⚠️ $1 million per financial year (April 1 – March 31)

Current equivalent: ~₹8.3 crores (at ₹83/$)

Conditions:

✅ Tax compliance (all taxes paid)
✅ Form 15CA + 15CB filed
✅ Source of funds documented
✅ ITR filed (if required)

Cumulative limit:
If you repatriate $500K in July and $600K in December (same FY) = Total $1.1M → Exceeds limit, last $100K blocked.

Next FY: Fresh $1M quota available from April 1.

From FCNR Account:

Limit: ✅ Unlimited

Same as NRE (foreign-sourced funds).

From Property Sale Proceeds:

Scenario A: Property Bought as NRI (Using NRE/Foreign Funds)

Repatriation: ✅ Unlimited (if proceeds deposited in NRE account after sale)

Conditions:

Purchase was from NRE/inward remittance
Sale proceeds go to NRE account
Capital gains tax paid
Original purchase documents maintained

Example:
NRI bought flat in 2018 for $200K (from NRE).
Sold in 2024 for ₹3 crores.
→ Can repatriate full ₹3Cr (minus tax) to any country.

Scenario B: Property Bought as Resident (Before Becoming NRI)

Repatriation: ⚠️ $1 million per FY (goes under NRO limit)

Conditions:

Sale proceeds deposited in NRO
Subject to $1M/year cap
Needs Form 15CA/15CB
Must prove purchase from Indian funds (old documents)

Example:
Bought property as resident in 2010 for ₹50L.
Became NRI in 2015.
Sold in 2024 for ₹2Cr.
→ Can repatriate $1M/year (takes 2+ years for full amount if exceeds $1M).

Summary Table:

Source	Annual Limit	Form 15CA/CB Needed?	Tax Compliance?
NRE Account	Unlimited	No	N/A (tax-free)
NRO Account	$1 million	Yes	Yes
FCNR Account	Unlimited	No	N/A (tax-free)
Property (bought as NRI)	Unlimited (via NRE)	No	Yes (capital gains)
Property (bought as resident)	$1 million (via NRO)	Yes	Yes

4. Form 15CA & 15CB — The Repatriation Gateway

Without these forms, banks WILL NOT process NRO repatriation.

What is Form 15CA?

Definition: Online declaration filed by remitter (you) on Income Tax portal before sending money abroad.

Purpose: Inform Income Tax Department about:

Nature of remittance
Amount
Tax compliance status
Recipient details

Filed by: The NRI (or authorized representative)

Filed on: Income Tax e-filing portal (incometax.gov.in)

Cost: Free (government form)

What is Form 15CB?

Definition: Certificate issued by Chartered Accountant certifying tax compliance and FEMA eligibility.

Purpose: Verify:

Source of funds is legitimate
Applicable taxes paid
TDS deducted (if required)
DTAA benefit (if claimed)
FEMA regulations complied
Remittance permissible

Issued by: CA (must have valid UDIN – Unique Document Identification Number)

Cost: ₹3,000 – ₹15,000 (depending on complexity, amount, CA)

When is Form 15CB NOT Required?

Exempted categories (Form 15CA Part D—no 15CB needed):

✅ Remittances below ₹5 lakhs per transaction (certain categories)
✅ Repatriation from NRE/FCNR accounts
✅ Education fees (direct to institution)
✅ Medical treatment (direct to hospital)
✅ Travel expenses (certain limits)
✅ Maintenance of close relatives abroad

For NRO property sale/rent/business income >₹5L: Form 15CB mandatory.

Form 15CA Parts:

Part A: Remittances not requiring 15CB (exempted categories)
Part B: Remittances requiring 15CB (CA certificate)
Part C: Remittances where tax not payable (with explanation)
Part D: Remittances below ₹5L (certain categories)

For typical NRO repatriation (property sale/rent): Use Part B (needs 15CB).

Key Information in Form 15CB:

PAN of remitter
Nature of remittance (property sale, rent, dividend, etc.)
Amount in INR and foreign currency
Tax deducted (TDS)
Tax payable
DTAA article (if applicable)
Assurance that remittance is FEMA-compliant
CA’s certificate number and UDIN

5. Documents Required for Repatriation (Complete Checklist)

✅ Basic Documents (Always Required):

1. Passport (copy with visa stamps—proves NRI status)

2. Visa / OCI Card / PIO Card

3. PAN Card

4. Overseas Address Proof (utility bill, bank statement, driver’s license from foreign country)

5. Indian Bank Account KYC (Aadhaar, address proof as per bank records)

6. FEMA Declaration / Undertaking
(Bank provides format; you sign declaring compliance)

✅ Transaction-Specific Documents:

For Rental Income Repatriation:

Rental agreement (registered, if applicable)
Tenant PAN
Rent receipts
TDS certificates (Form 16C—if tenant deducted TDS)
Property tax receipts
ITR copies (showing rental income declared)

For Property Sale Proceeds:

Sale deed (registered)
Purchase deed (original—critical to prove cost)
Payment proof for original purchase (bank statements, cheques from 10-20 years ago if available)
Capital gains computation (CA-prepared, showing indexed cost, expenses)
Form 26QB (TDS certificate from buyer—buyer deducts TDS before paying NRI)
ITR copy (filing capital gains)
Form 16B (TDS certificate downloaded from TRACES)
Property tax paid receipts
Improvement cost bills (if claiming)

For Dividend/Interest Income:

Bank statements (showing credit)
Form 16A (TDS certificate from company/bank)
ITR (if income >₹2.5L)

For Gift Received:

Gift deed (notarized, if high value)
Relationship proof (if from relatives—needed for Income Tax exemption under Section 56)
Donor’s PAN, bank statement (showing source)

For Investment Sale (Shares/MF):

Capital gains statement (from broker/AMC)
Contract notes (buy/sell)
Demat holding statement
TDS certificate (if applicable)
ITR (showing capital gains)

For All NRO Repatriations:

✅ Form 15CA (filed online, print acknowledgment)
✅ Form 15CB (CA certificate—original with UDIN)
✅ Form 26AS (showing TDS credits)
✅ ITR Acknowledgment (for relevant years)
✅ Bank account statement (showing fund source)

✅ Additional Documents (Bank May Request):

Source of funds declaration
Purpose of repatriation letter
Beneficiary bank details (SWIFT code, IBAN, account number, address)
Relationship with beneficiary (if sending to someone else)
Previous repatriation records (if multiple transactions)

6. Tax Compliance Before Repatriation (Non-Negotiable)

Banks will NOT process repatriation until all taxes paid.

Tax Type 1: Capital Gains Tax (Property/Shares/MF)

Must be paid before repatriation.

Process:

Calculate capital gains (sale price – indexed cost – expenses)
Apply tax rate:
- LTCG on property: 20% (with indexation)
- STCG on property: 30%
- LTCG on equity: 12.5% (>₹1.25L)
- STCG on equity: 20%
File ITR-2 showing gains
Pay self-assessment tax (if TDS < actual tax)
Obtain ITR acknowledgment
Provide to CA for Form 15CB

Tax Type 2: TDS Already Deducted

Scenarios:

Property Sale:
Buyer deducts TDS @20% (LTCG) or 30% (STCG) via Form 26QB.

Rent:
Tenant deducts TDS @31.2% (if rent >₹50K/month) via Form 26QC.

Dividend/Interest:
Company/bank deducts TDS @20-30%.

Your action:

Verify TDS in Form 26AS
File ITR
If TDS > actual tax → claim refund
If TDS < actual tax → pay balance

Tax Type 3: DTAA Benefit (If Applicable)

If you’re claiming lower tax rate under DTAA:

Must provide:

Tax Residency Certificate (TRC) from country of residence
Form 10F (filed on Income Tax portal)
DTAA article citation
CA confirms in Form 15CB

Example:
NRI in USA selling Indian property.
India-USA DTAA: Capital gains taxable in India (source country).
USA gives Foreign Tax Credit for Indian tax paid.
→ Form 15CB mentions DTAA; helps avoid double taxation.

Tax Type 4: No Tax on NRE/FCNR Interest

Good news: If repatriating from NRE/FCNR, interest is tax-free.
No ITR needed (if only income).

7. Step-by-Step Repatriation Process (Actionable Guide)

Phase 1: Pre-Repatriation Preparation

Step 1: Ensure funds are in correct account

Foreign income → NRE/FCNR
Indian income → NRO

Step 2: Assess repatriation limit

NRE/FCNR: Unlimited
NRO: $1M/year

Step 3: Calculate tax liability

Property sale: Capital gains
Rent: Rental income
Interest: Already taxed via TDS

Step 4: Pay taxes (if due)

File ITR
Pay self-assessment tax
Get acknowledgment

Phase 2: Form 15CA & 15CB Filing

Step 5: Engage Chartered Accountant

Provide all documents (purchase deed, sale deed, bank statements, ITR, etc.)
CA prepares Form 15CB

Step 6: Obtain Form 15CB from CA

Verify details (amount, nature, tax calculations)
Ensure UDIN mentioned
Keep original + digital copy

Step 7: File Form 15CA online

Login: Income Tax portal → Services → Form 15CA
Select Part (usually Part B for NRO)
Enter details (amount, purpose, beneficiary)
Upload Form 15CB (PDF)
Submit
Download acknowledgment

Phase 3: Bank Application

Step 8: Visit bank (or online/email submission)

Submit:

Repatriation application form (bank’s format)
Passport copy
Overseas address proof
Form 15CA acknowledgment
Form 15CB original (with CA seal + UDIN)
Supporting documents (sale deed/rent agreement/etc.)
ITR copies
Form 26AS
FEMA declaration

Step 9: Bank verification (3-7 days)

Bank’s forex department checks FEMA compliance
Verifies Form 15CB authenticity (UDIN validation)
Cross-checks with Form 26AS
May call CA for clarification

Step 10: Bank approval

Phase 4: Remittance Execution

Step 11: Provide beneficiary details

Beneficiary name (exactly as per their bank account)
Bank name, address
SWIFT code / BIC code
IBAN / Account number
Purpose of remittance (personal use, property sale proceeds, etc.)

Step 12: Funds debited from Indian account

Step 13: Remittance processed (SWIFT transfer)

NRE/FCNR: 24-72 hours
NRO: 3-7 working days

Step 14: Funds credited to foreign account

Receive email/SMS confirmation
Check foreign bank statement

Phase 5: Record-Keeping

Step 15: Obtain documents from bank

Foreign Outward Remittance Certificate (FORC)
SWIFT copy
Debit advice
Bank charge breakdown

Step 16: File for future reference

Keep for 6+ years (audit trail)
Needed for future transactions, tax filings

8. Common Mistakes NRIs Make (And How to Avoid)

❌ Mistake 1: Using Wrong Account Type

Wrong: Depositing property sale proceeds in old Savings Account (opened as resident).

Impact:

FEMA violation
Bank refuses repatriation
Must open NRO, transfer funds (delays)

Solution: Always use NRO for Indian income, NRE for foreign income.

❌ Mistake 2: Not Filing ITR Before Repatriation

Wrong: Assuming TDS deducted = tax compliance done.

Impact:

Form 15CB cannot be issued without ITR
Bank blocks repatriation

Solution: File ITR immediately after property sale/income receipt.

❌ Mistake 3: Losing Purchase Documents

Wrong: Sold property bought 15 years ago; can’t find original purchase deed.

Impact:

Cannot prove cost of acquisition
Cannot calculate indexed cost
Entire sale consideration may be treated as income (huge tax)
Repatriation complicated

Solution:

Maintain digital + physical copies of all property docs
Store in cloud (Google Drive, Dropbox)
Give copies to family/lawyer in India

❌ Mistake 4: Incorrect TDS by Buyer

Wrong: Buyer deducted TDS @30% (assuming STCG) when property held >24 months (should be 20% LTCG).

Impact:

Excess TDS deducted (money stuck)
Must file ITR, wait 6-12 months for refund
Delays repatriation (can’t send full amount immediately)

Solution:

Before sale, confirm holding period (LTCG vs. STCG)
File Form 13 (application for lower/nil TDS if actual tax is lower)
Educate buyer’s CA

❌ Mistake 5: Mixing Funds from Multiple Sources

Wrong: NRO account has:

Rent: ₹10L
Property sale: ₹1.5Cr
Gift from parents: ₹20L
All mixed; trying to repatriate ₹1.8Cr.

Impact:

Bank asks: “What’s the source of each rupee?”
Cannot provide clear documentation
Repatriation rejected

Solution:

Maintain separate NRO accounts for different income streams (if high value)
OR maintain detailed Excel tracker (date, source, amount, document reference)

❌ Mistake 6: Exceeding $1 Million Limit (NRO)

Wrong: Repatriated $700K in November (NRO).
Wants to send another $500K in February (same FY).
Total: $1.2M → Exceeds limit.

Impact:

Last $200K blocked until next FY (April onwards)

Solution:

Plan repatriation across FYs if amount >$1M
Example: $800K in March (FY1) + $400K in April (FY2)

❌ Mistake 7: Not Claiming DTAA Benefits

Wrong: Paid 30% tax in India on interest income.
Didn’t realize India-Singapore DTAA allows 15%.

Impact:

Overpaid tax (15% excess)
Can file revised ITR to claim refund, but delays

Solution:

Before TDS deduction, submit Form 10F + TRC to bank/payer
CA mentions DTAA in Form 15CB

❌ Mistake 8: Sending Money Without Form 15CA/15CB

Wrong: “It’s my money, why do I need forms?”

Impact:

FEMA violation (penalty up to 3x amount)
Bank reports to RBI
Future repatriations blocked
Possible investigation

Solution: NEVER skip 15CA/15CB for NRO repatriation >₹5L.

❌ Mistake 9: Ignoring Small Remittances

Wrong: “It’s only ₹2 lakhs, no need for formality.”

Reality: Even small NRO remittances need proper documentation (though 15CB may be exempted below ₹5L).

Solution: Follow process even for small amounts; avoid FEMA issues.

❌ Mistake 10: Not Tracking Annual $1M Quota

Wrong: Multiple small repatriations (₹10L, ₹15L, ₹20L) throughout year.
Lost count; exceeded $1M unknowingly.

Impact: Last transaction blocked.

Solution: Maintain repatriation register (date, amount in USD, cumulative).

9. Property Sale Repatriation (Special Deep Dive)

Property sale is the #1 repatriation scenario for NRIs.

Scenario A: Property Bought as NRI (Post-Becoming NRI)

Purchase: 2020, ₹80L, funds from NRE account (foreign salary)

Sale: 2024, ₹1.5Cr

Repatriation Steps:

Step 1: Sale proceeds go to NRE account (not NRO)
Step 2: Calculate LTCG:

Sale: ₹1.5Cr
Indexed cost: ₹80L × (363/301) = ₹96.5L (CII example)
LTCG: ₹53.5L
Tax @20%: ₹10.7L

Step 3: File ITR-2

Step 4: Pay tax: ₹10.7L

Step 5: Repatriate:

Full ₹1.5Cr – ₹10.7L tax = ₹1.39Cr repatriable
No Form 15CA/15CB needed (NRE account, unlimited)
Direct bank transfer

Timeline: 3-5 days

Scenario B: Property Bought as Resident (Pre-NRI Status)

Purchase: 2010 (as resident), ₹50L, funds from Indian salary

Sale: 2024 (as NRI), ₹2Cr

Repatriation Steps:

Step 1: Sale proceeds go to NRO account (property originally bought as resident)

Step 2: Calculate LTCG:

Sale: ₹2Cr
Indexed cost: ₹50L × (363/167) = ₹1.09Cr
LTCG: ₹91L
Tax @20%: ₹18.2L

Step 3: Buyer deducts TDS @20%: ₹40L (on ₹2Cr gross—they don’t know indexed cost)

Step 4: File ITR-2:

Show LTCG: ₹91L
Tax payable: ₹18.2L
TDS: ₹40L
Refund due: ₹21.8L

Step 5: Wait for refund (3-6 months)

Step 6: Repatriation:

Subject to $1M/year limit
₹2Cr = ~ $2.4M (at ₹83/$ 2.4M(at₹83/)
Year 1: Repatriate $1M (₹83L) – needs Form 15CA/15CB
Year 2: Repatriate $1M (₹83L) – needs Form 15CA/15CB
Year 3: Repatriate balance $400K (₹33L) – needs Form 15CA/15CB

Timeline: 3+ years for full repatriation

Alternative: Keep balance in NRO, invest in India, repatriate gradually.

Key Documents for Property Repatriation:

✅ Original purchase deed (2010)
✅ Payment proof (bank statements from 2010—if available)
✅ Sale deed (2024)
✅ Form 26QB (buyer’s TDS certificate)
✅ Capital gains computation (CA-certified)
✅ ITR-2 acknowledgment
✅ Form 15CA + 15CB (for NRO scenario)
✅ Property tax receipts
✅ Improvement bills (if any)

10. Bank Processing Times & Charges

Processing Time:

Account Type	Typical Timeline	Delays If
NRE/FCNR	24-72 hours	Documents incomplete
NRO (simple)	3-7 working days	Form 15CB verification
NRO (complex—property)	7-15 days	Old documents missing, tax issues

Bank Charges:

Outward remittance charges:

₹500 – ₹2,000 per transaction (varies by bank)
0.05% – 0.15% of amount (some banks)
SWIFT charges: $20-$50 (may be borne by sender or beneficiary)
Forex markup: 0.25% – 1% over inter-bank rate

Example:
Repatriating $50,000 (₹41.5L):

Bank charges: ₹1,500
SWIFT: $30 (₹2,500)
Forex margin: 0.5% = ₹20,750
Total cost: ~₹25,000 (0.6% of amount)

Tip: Compare banks; some offer free remittances for high-value customers or premium accounts.

11. DTAA Benefits for Repatriation

DTAA doesn’t directly affect repatriation process, but reduces tax burden.

How DTAA Helps:

Benefit 1: Lower Withholding Tax

Example (Interest):

Default NRO interest TDS: 30%
India-Germany DTAA: 10%
Savings: 20% → More money to repatriate

Benefit 2: Foreign Tax Credit

Example (Property Sale):

Indian LTCG tax paid: ₹10L
Declare in US tax return
Claim Foreign Tax Credit: $12,000 (₹10L equivalent)
US tax reduced by that amount

Benefit 3: Avoiding Disputes on Taxability

Example (Salary):

NRI works in UK, visits India for 30 days on assignment
India-UK DTAA: If stay <183 days + paid by UK employer → India may not tax
Avoids double tax on salary

Documents for DTAA Benefit:

✅ Tax Residency Certificate (TRC)—from country of residence
✅ Form 10F—filed on Income Tax portal
✅ CA mentions DTAA in Form 15CB
✅ ITR shows DTAA relief claimed

12. When to Consult Professionals (Red Flags)

DIY repatriation is risky for:

⚠️ Scenario 1: Property Sale Involved

Why complex:

Capital gains calculations (indexation, improvement costs)
Old documents (purchase deed from 15-20 years ago)
TDS corrections (buyer deducted wrong rate)
Multiple owners (joint ownership repatriation)

Cost of mistake: ₹5-50 lakhs+ in excess tax, delays, penalties.

⚠️ Scenario 2: Amount >₹1 Crore

Why complex:

Higher scrutiny by bank, RBI, Income Tax
Form 15CB needs detailed CA certification
Tax planning needed (minimize tax legally)

⚠️ Scenario 3: Old Funds (>5 Years in India)

Why complex:

Bank asks: “What’s the source of these funds?”
Need to trace back to original source
May involve inheritance, gifts, old property sale

⚠️ Scenario 4: Multiple Income Sources Mixed

Why complex:

Rent + dividend + interest + property sale = all in one NRO
Difficult to segregate for Form 15CB
Tax computation for each stream

⚠️ Scenario 5: DTAA Claim

Why complex:

Need TRC, Form 10F, treaty interpretation
CA must be conversant with DTAA provisions
Mistakes = overpayment or under-reporting

⚠️ Scenario 6: Past Years ITR Not Filed

Why complex:

Must file backdated ITRs (3-5 years)
Late fees + interest
Reconcile all income, TDS
Then only Form 15CB can be issued

⚠️ Scenario 7: Received Notice from Income Tax / RBI

Why complex:

Repatriation on hold until notice resolved
Need expert to respond, provide documents
Compounding application may be needed

When to Engage Expert:

✅ Property sale proceeds >₹50L
✅ Amount to repatriate >₹1Cr
✅ Multiple transactions/years pending
✅ Documents missing (old purchase deed, etc.)
✅ DTAA claim involved
✅ Received notice/query from bank/Income Tax/RBI
✅ First-time repatriation (want to get process right)

Cost: ₹10,000 – ₹1,00,000 depending on complexity.

ROI: Saves ₹50K – ₹50L+ in taxes, penalties, delays.

13. Conclusion: Repatriation is Simple IF You Follow Rules

Key Takeaways:

✅ Use correct account: NRE for foreign income (unlimited), NRO for Indian income ($1M/year limit)
✅ Pay all taxes first: Capital gains, rental income—file ITR before repatriation
✅ Form 15CA + 15CB mandatory for NRO repatriation (most cases)
✅ Maintain documents: Purchase deeds, sale deeds, ITR, 26AS, TDS certificates
✅ Track $1M limit: Annual cap for NRO; plan multi-year repatriation if needed
✅ Claim DTAA benefits: Form 10F + TRC → lower tax rates
✅ Don’t mix funds: Separate accounts/clear documentation for each income source
✅ Engage CA for 15CB: Don’t attempt DIY for complex cases
✅ Plan property sale carefully: LTCG calculation, TDS optimization, repatriation account
✅ Keep 6-year audit trail: All repatriation documents, bank certificates, ITR

What proper repatriation gives you:

✅ Money reaches abroad in 3-7 days
✅ Zero FEMA violations
✅ Clean tax record
✅ No RBI/Income Tax notices
✅ Peace of mind
✅ Easy repeat repatriations

What improper repatriation costs:

❌ Money stuck for months/years
❌ FEMA penalties (3x amount + ₹2L + ₹5K/day)
❌ Income Tax scrutiny
❌ Legal complications
❌ Stress and loss of opportunity

The bottom line: Repatriation is 100% legal and fast—just follow FEMA + Tax + Banking rules.

FAQs: NRI Repatriation Rules (30 Essential Questions)

Q1: What is repatriation under FEMA?

A: Repatriation = legally transferring money from India to a foreign country in compliance with FEMA (Foreign Exchange Management Act). It covers salary, rent, property sale proceeds, dividends, interest, investments, gifts, etc., sent from India to abroad.

Q2: Can NRIs repatriate money from India to any country?

A: Yes, NRIs can repatriate to any country, subject to:

FEMA compliance (correct account type, limits)
Tax compliance (all taxes paid, ITR filed)
Form 15CA/15CB (for NRO)
Proper documentation

No restrictions on destination country (can be country of residence or any other).

Q3: What is the difference between NRE and NRO accounts for repatriation?

NRE: Unlimited repatriation, no Form 15CA/15CB needed, tax-free interest
NRO: Limited to $1 million/year, requires Form 15CA/15CB, taxable interest @30%

Use NRE for foreign income, NRO for Indian income.

Q4: How much money can an NRI repatriate from India per year?

From NRE/FCNR accounts: Unlimited
From NRO account: $1 million per financial year (April-March)
Property sale (bought as NRI, proceeds in NRE): Unlimited
Property sale (bought as resident, proceeds in NRO): $1 million/year

Q5: What is Form 15CA and when is it required?

A: Form 15CA = online declaration filed by remitter (NRI) on Income Tax portal before outward remittance.

Required for: Most NRO repatriations (rent, property sale, business income, dividends >₹5L).

Not required for: NRE/FCNR repatriations, education fees (direct), medical expenses (direct), certain small remittances.

Q6: What is Form 15CB and who issues it?

A: Form 15CB = Chartered Accountant’s certificate verifying tax compliance and FEMA eligibility for repatriation.

Issued by: CA (with UDIN)

Required for: NRO repatriations >₹5 lakhs (typically property sale, rental income, business proceeds).

Cost: ₹3,000 – ₹15,000 depending on complexity.

Q7: Can I repatriate property sale proceeds immediately after sale?

A: Not immediately. Process:

Buyer pays (after deducting TDS @20-30%)
Deposit proceeds in NRO (if bought as resident) or NRE (if bought as NRI)
File ITR showing capital gains
Pay any balance tax
Engage CA for Form 15CB
File Form 15CA
Submit to bank with documents
Timeline: 15-45 days minimum (depending on document readiness, ITR processing)

Q8: What documents are required for NRO repatriation?

A: Essential docs:

Passport, visa/OCI
PAN card
Overseas address proof
Form 15CA + 15CB
ITR copies
Form 26AS
Source documents (sale deed/rent agreement/dividend statement)
Bank statements
FEMA declaration

For property: Also need purchase deed, capital gains computation, Form 26QB.

Q9: Can I repatriate funds without filing Income Tax Return?

A: No. CA cannot issue Form 15CB without ITR filing (for taxable income). Bank won’t process repatriation without Form 15CB.

Exception: Very small amounts (<₹5L certain categories) may not need 15CB, but ITR still recommended for clean record.

Q10: What happens if I exceed the $1 million NRO repatriation limit?

A: Bank will block the excess amount.

Example: Try to repatriate $1.2M in same FY → only $1M processed, $200K blocked until next FY (April 1 onwards, fresh quota).

Solution: Plan repatriation across financial years.

Q11: Is interest from NRE account taxable in India?

A: No. NRE account interest is tax-free in India. No TDS, no ITR needed (if only income).

Bonus: Fully repatriable anytime without Form 15CA/15CB.

Q12: Is interest from NRO account taxable?

A: Yes. NRO interest is taxable @30% (TDS ~31.2%).

Must file ITR if total Indian income >₹2.5 lakhs.

Can claim refund if TDS > actual tax liability (after deductions).

Q13: Can I repatriate gift received from parents in India?

A: Yes.

Process:

Gift deposited in NRO account
If amount >₹50,000: Gift deed recommended
Relationship proof (if claiming Income Tax exemption under Section 56)
File Form 15CA + 15CB (if >₹5L)
Subject to $1M/year limit

Tax: Gifts from parents/close relatives tax-free (Section 56 exemption).

Q14: How long does NRO repatriation take?

A: Typical timeline:

Document submission to bank: Day 0
Bank verification: 3-7 days
SWIFT transfer: 2-3 days
Total: 5-10 working days (if all documents correct)

Delays if: Documents incomplete, Form 15CB UDIN invalid, tax issues, old documents missing.

Q15: What is the cost of repatriating money from India?

A: Typical charges:

Bank outward remittance fee: ₹500 – ₹2,000
SWIFT charges: $20-$50 (~₹2,500)
Forex margin: 0.25% – 1% of amount
CA fee for Form 15CB: ₹3,000 – ₹15,000

Total cost: ~0.5% – 2% of amount (varies by bank, amount, complexity).

Q16: Can I repatriate funds to someone else’s account (not mine)?

A: Generally not recommended. Repatriation should ideally be to your own account in country of residence.

Exceptions: Family members (with proper documentation, relationship proof, purpose explanation).

Risk: Bank may flag as money laundering if beneficiary name doesn’t match remitter.

Q17: Do I need to pay capital gains tax before repatriating property sale proceeds?

A: Yes, absolutely.

Process:

Buyer deducts TDS (20-30%)
You file ITR showing capital gains
Pay any balance tax (if TDS insufficient)
Only then CA issues Form 15CB
Then repatriation proceeds

Cannot repatriate without tax compliance.

Q18: What if I lost my original property purchase deed?

A: Big problem for repatriation.

Solutions:

Get certified copy from Sub-Registrar office (where property registered)
Affidavit from seller (if traceable)
Bank statements from year of purchase (proving payment)
Municipal records

Without purchase proof: Cannot calculate capital gains accurately → higher tax → complications in Form 15CB.

Prevention: Digitize all property docs immediately; keep multiple backups.

Q19: Can I repatriate rental income collected over 5 years?

A: Yes, subject to:

Cumulative amount within $1M/year limit
ITR filed for all 5 years (showing rental income)
TDS certificates (Form 16C) from tenant
Form 15CA + 15CB covering all years
Clear documentation (rent agreements, receipts)

If >$1M: Split repatriation across multiple FYs.

Q20: What is DTAA and how does it help in repatriation?

A: DTAA (Double Taxation Avoidance Agreement) = treaty preventing double tax.

Helps repatriation by:

Reducing tax burden (lower TDS rates) → more net amount to repatriate
Providing Foreign Tax Credit (tax paid in India credited in other country)
Clarifying taxability (which country taxes what income)

Documents: TRC + Form 10F + DTAA mention in Form 15CB.

Q21: Can I repatriate money from India if I’m not an NRI but a foreign citizen?

A: Yes, if you earned income in India legally (salary, business, consulting).

Use: NRO account → subject to $1M/year limit → Form 15CA/15CB → tax compliance.

Same rules as NRI repatriation.

Q22: What is the penalty for repatriating without Form 15CA/15CB?

A: FEMA violation:

Penalty: Up to 3x the amount involved
Plus: ₹2 lakhs
Plus: ₹5,000/day continuing violation
Compounding required (costly, time-consuming)
Bank reports to RBI → account scrutiny

Bottom line: Never skip Form 15CA/15CB for NRO repatriation.

Q23: Can I repatriate FD maturity amount from NRE account?

A: Yes, easily.

Process:

NRE FD matures
Principal + interest credited to NRE savings account
Request outward remittance (online/branch)
Provide beneficiary details
No Form 15CA/15CB needed
Transfer in 24-72 hours

Fully repatriable, tax-free, no hassle.

Q24: What if TDS was deducted incorrectly (higher rate) on my property sale?

A: Common issue.

Solution:

File ITR showing correct capital gains calculation
Show TDS deducted (even if excess)
Claim refund of excess TDS
Repatriate available amount immediately
Repatriate refund amount once received (3-6 months later)

Prevention: File Form 13 before sale (application for lower/nil TDS if actual gain is less).

Q25: Can I keep money in NRO account indefinitely without repatriating?

A: Yes, no compulsion to repatriate immediately.

Many NRIs:

Keep funds in NRO
Invest in Indian FDs, mutual funds, property
Repatriate gradually over years (within $1M/year limit)

Benefit: Diversification, INR exposure, family needs in India.

Q26: How do I calculate the $1 million limit in Indian Rupees?

A: Use exchange rate on date of remittance.

Example:

April 2024: $1M = ₹83 × 1M = ₹8.3 crores (if USD/INR = 83)
Limit is in USD equivalent, not fixed INR

If INR weakens: Your INR repatriation capacity increases (more INR per $1M).
If INR strengthens: Capacity decreases.

Q27: Can I repatriate if I have old pending Income Tax demands?

A: Bank may block repatriation if:

Outstanding tax demand in your PAN
Visible in Form 26AS under “Demand”

Solution:

Clear demand (pay tax + interest)
OR contest demand (file appeal, get stay)
Once settled, repatriation proceeds

Lesson: Keep tax affairs clean; resolve demands promptly.

Q28: What happens if my Form 15CB has errors?

A: Bank will reject remittance application.

Common errors:

Amount mismatch (15CB shows ₹1Cr, application for ₹1.5Cr)
Nature of remittance wrong
Tax calculation incorrect
UDIN invalid/duplicate

Solution: CA must issue corrected Form 15CB → resubmit to bank.

Q29: Can I use LRS (Liberalised Remittance Scheme) as an NRI?

A: No. LRS is only for residents, not NRIs.

NRIs use:

NRE account: Unlimited repatriation (no LRS needed)
NRO account: $1M/year (specific FEMA rules, not LRS)

If you become resident again: Then LRS applies ($250,000/year for all purposes).

Contact AdvoFin Consulting to ensure your NRI repatriation is fast, compliant, and hassle-free.

Disclaimer: This blog is for informational purposes only and does not constitute legal, tax, or financial advice. FEMA and Income Tax regulations are subject to frequent amendments. NRI repatriation situations vary by individual circumstances, source of funds, country of residence, and transaction complexity. Please consult a qualified Chartered Accountant, Advocate, or FEMA specialist for personalized guidance. AdvoFin Consulting is not liable for actions taken based solely on this content.