NRI Repatriation & FEMA Guide 2026
repatriating funds from Indian property sales requires clearing capital gains taxes and complying with RBI's annual USD 1 Million LRS caps. This guide maps FEMA bank compliance codes and Form 15CA/15CB processes.
Key Highlights covered:
- Remittance Caps: Rules for transferring funds up to USD 1 Million per year from NRO accounts.
- Form 15CA/15CB: Step-by-step tax declaration filing with CA certification.
- Property gains: Tax deductions, TDS exemptions, and lower tax certificate filings.
- FEMA declarations: Bank report codes and inward remittance reporting structures.
What is the process for repatriating property sale funds?
The buyer typically deducts TDS at 20%+ on the property sale price. The NRI must secure a tax clearance certificate (Form 15CA) and a CA audit report (Form 15CB) certifying that appropriate taxes have been paid, before the AD bank executes the outward foreign exchange remittance.
How is the USD 1 Million FEMA annual limit tracked?
AD Category-I banks track remittances under the NRO account route, validating that the total funds repatriated by the NRI out of India across all banks do not exceed USD 1 Million per financial year.
Frequently Asked Questions
India has no inheritance tax, so inheriting assets is tax-free. However, any income generated from those assets (like rent or interest) or capital gains from selling them are taxable, requiring Form 15CA/15CB filings for remittance.
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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.