What is the NRI Repatriation?
NRI repatriation means transferring money or assets from India to your country of residence as a Non-Resident Indian. This includes funds in NRO, NRE, or FCNR accounts, as well as proceeds from the sale of property or other assets in India.
It enables NRIs to repatriate savings, rental income, inheritance, or investment returns to their overseas bank accounts, all while adhering to RBI and FEMA regulations. Taxes, such as TDS, are deducted where applicable before the transfer is made.
Example: Rajesh, an NRI living in Dubai, can repatriate rental income from his Mumbai flat in FY 2025‑26 after paying the required TDS.
What is the Use of NRI Repatriation?
NRIs use the repatriation of funds for the following reasons:
- Investing or Spending Abroad: To fund expenses in their country of residence, such as buying a home, education, or medical costs.
- Financial Planning: To bring back savings or proceeds from the sale of assets for better financial management.
- Transferring Indian earnings: NRIs move income earned in India, such as rent, dividends, interest, or property sale proceeds, to their overseas accounts.
- Avoiding Currency Risk: To keep funds in foreign currency and reduce exposure to exchange rate fluctuations.
Difference Between NRO Repatriation vs NRE/FCNR Repatriation
NRIs should understand the difference between NRO and NRE/FCNR repatriation:
| Account Type |
Repatriation Limit |
Tax Requirement |
Key Use Case |
| NRE Account (Non‑Resident External) |
Both principal & interest are fully repatriable without any limit. |
Interest is tax‑free in India. |
Foreign income remitted to India, savings in INR or deposits from abroad. |
| FCNR (B) Account (Foreign Currency Non‑Resident) |
Principal + interest fully repatriable, no limit on repatriation amount |
Interest is tax‑free in India. |
Savings/deposits in foreign currency (USD, GBP, EUR, etc.) to avoid exchange rate risk. |
| NRO Account (Non‑Resident Ordinary) |
- Repatriation allowed, but with conditions.
- Repatriation limit ~ USD 1 million per financial year (principal + interest) for sale proceeds or capital income.
- Interest or current income (such as rent or dividends) may be repatriable under certain rules.
|
Taxes + CA certificate for tax clearance |
Income earned within India, such as rent, dividends, pension, sale of Indian property/assets, inheritance, etc. |
Note: NRO accounts handle India-sourced income with certain limits, while NRE and FCNR accounts offer full freedom to transfer funds abroad.
Example: Priya sold stocks in her NRO account for ₹80 lakh in October 2025. After paying 15% STT/TDS, she successfully repatriated USD 95,000 within the allowed annual limit.
Eligible Income for NRI Repatriation
An NRI can repatriate the following income:
- Sale proceeds from Indian assets (property, investments)
- Rental income from property in India
- Dividends, interest, capital gains, and other investment income earned in India
- Inherited funds or assets in India
- Funds you earlier sent to India (overseas remittance) and parked in NRE/FCNR
- Savings/deposits in NRE or FCNR accounts.
Documents Required for NRI Repatriation
To repatriate funds, the following documentation and compliance are required:
- For NRE/FCNR Accounts: A passport copy, account statement, proof of account, and a declaration under FEMA (typically Form A2) are required to confirm the eligible funds.
- For NRO Account Repatriation: Along with the above, you need:
- Application/request for remittance abroad
- Form 15CA (self‑declaration for remittance)
- Form 15CB: certificate from a Chartered Accountant confirming taxes have been paid on repatriated income/assets.
- Proof of source of funds (sale deeds, rental agreements, investment statements, etc.) if required under FEMA / bank rules.
How Can NRI Repatriate Funds?
You can follow these steps for quick and easy NRI or NRO repatriation:
-
Confirm Eligibility & Pay Taxes:
Ensure your funds are eligible for repatriation and pay any applicable taxes or TDS.
-
Submit Forms:
Complete and submit required forms, like 15CA/15CB, to your authorised bank.
-
Bank Verification & CA Certification:
The bank verifies the request, and a Chartered Accountant certifies NRO repatriation if needed.
-
Funds Transfer:
Money is transferred to your foreign account via SWIFT.
-
Receive Confirmation:
The bank confirms once the transfer is complete.
FEMA Rules for Repatriation in 2025
The following are the Foreign Exchange Management Act (FEMA) rules enforced by RBI to ensure safe NRI repatriation:
- Current Income: Earnings such as rent, dividends, or interest can be repatriated at any time after paying taxes.
- NRO Funds: Must come from legitimate sources; loans or unverified funds are not allowed.
- Property Sales: Full repatriation allowed for up to 2 residential properties bought via NRE/FCNR accounts; otherwise, subject to a USD 1 million annual cap.
- Exclusions: Sales of agricultural land or farmhouses are not eligible for repatriation.
- Exceeding USD 1 Million: Requires RBI approval, typically for emergencies such as medical treatment or education, and is processed within 60–90 days.
What are the Common Mistakes in NRI Repatriation?
NRIs should avoid the following common mistakes during repatriation:
- Skipping Taxes: Trying to repatriate NRO funds without paying applicable taxes can lead to rejection.
- Incorrect Documentation: Failing to submit the required forms, such as Form 15CA/15CB, may result in the bank rejecting your request.
- Ignoring FEMA Rules: Repatriating proceeds from restricted transactions, such as selling more than two residential properties purchased with foreign funds, can lead to compliance issues.
- Misunderstanding Limits: Assuming the NRO repatriation limit applies to NRE/FCNR accounts—it does not, as these accounts allow unlimited transfers.
Conclusion
NRI repatriation helps you move your money from India to the country where you live. You can send your savings, income, or money received from selling assets in India. The simplicity of the process depends on whether you use an NRE, FCNR, or NRO account, as well as whether you follow tax and RBI rules.
Invest 18k/month & get 2 Crore# Tax-Free*
Manage your funds online60k + happy customers across 25+ countries
Compare & Choose30+ Plans and 150+ Fund options
