FEMA Rules for NRIs: Repatriating Money From India
NRE/NRO/FCNR rules, USD 1 million limits, and Form 15CA/15CB compliance.
NRE and FCNR balances are fully repatriable without limit. NRO outward remittances are capped at USD 1 million per financial year after applicable Indian taxes and Form 15CA/15CB (or Form 145/146 from April 2026 onward) compliance. Property sale proceeds follow the NRO framework with additional residential property limits.
NRE, NRO, and FCNR — they are not interchangeable
NRE holds foreign income remitted to India and is fully repatriable with tax-free interest. NRO holds India-sourced income and is repatriable up to USD 1 million per year after tax. FCNR foreign-currency deposits are fully repatriable with tax-free interest. Routing foreign salary into NRO is a common and avoidable mistake.
Understanding the USD 1 million NRO limit
The cap applies to combined outward remittances from all NRO accounts per financial year, including transfers from NRO to NRE. NRE and FCNR are not subject to this cap. International NRO card spending also counts against the limit.
Form 15CA, 15CB, and the April 2026 transition
Banks typically require Form 15CA self-declaration and Form 15CB CA certification before NRO outward remittances above ₹5 lakh. From 1 April 2026, Form 145 and Form 146 replace 15CA and 15CB under updated rules, but the underlying certification requirement remains.
Repatriating property sale proceeds
Sale proceeds credit to NRO even if originally purchased with foreign funds. Buyers deduct TDS, a CA issues Form 15CB, you file the self-declaration, and the bank processes SWIFT transfer after reviewing deeds, TDS certificates, and tax acknowledgments. Residential property repatriation is generally limited to two properties under long-standing RBI guidance.
Common mistakes that delay repatriation
Typical blockers include wrong account routing, attempting remittance before tax clearance, missing CA certificates, assuming NRO limits apply to NRE/FCNR, waiting too long after property sales, and poor source-of-funds documentation.
Frequently Asked Questions
No. NRE balances including interest are fully repatriable under FEMA.
Up to USD 1 million per financial year across all NRO accounts after tax compliance and Form 15CA/15CB (or Form 145/146) documentation.
For most NRO remittances above ₹5 lakh — especially property sales — yes. A CA must certify tax compliance before the bank processes the transfer.
Once documentation clears, banks typically execute SWIFT transfers within a few working days, depending on bank and destination country.
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This article is written and reviewed by practicing Chartered Accountants of DSS Corp Advisory in Chennai. Information is aligned with the latest Finance Act notifications.