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Repatriation

General

Repatriation of Funds

The process of transferring India-based investment or income proceeds to an NRI's country of residence, unrestricted from NRE accounts and capped at USD 1 million per year from NRO accounts.

Definition

Repatriation is the process of transferring investment or income proceeds held in India to an NRI's country of residence abroad. The rules differ sharply depending on the source account: funds in an NRE account, representing foreign earnings, can be repatriated fully and freely with no cap, while funds in an NRO account, representing India-sourced income, are capped at USD 1 million per financial year and require tax compliance documentation.

This distinction exists because NRE funds were never taxed in India, while NRO funds represent domestically taxed income, the extra scrutiny on NRO repatriation exists to confirm applicable Indian taxes have actually been paid before money leaves the country.

Formula

There's no calculation, but the practical cap is fixed:

Maximum NRO Repatriation per Financial Year = USD 1 million (subject to Form 15CA/15CB tax compliance documentation)

NRE Repatriation = No cap

Worked Example

An NRI sells an apartment in India for ₹1,50,00,000 (roughly USD 180,000), with proceeds credited to their NRO account after applicable capital gains tax is settled.

  • Since this is well under the USD 1 million annual cap, the full amount can be repatriated in the same financial year
  • Required documentation: Form 15CA (self-declaration) and Form 15CB (CA certificate confirming tax compliance)

If this were instead foreign salary income sitting in an NRE account, no cap or CA certificate would apply at all.

Key Things to Know

  • NRE repatriation is unrestricted, NRO is capped and documented. This is the single most important distinction to understand before planning a large transfer abroad.
  • Form 15CA/15CB is the standard compliance gate for NRO transfers. Larger NRO repatriations typically require a chartered accountant's sign-off confirming taxes are settled.
  • Property sale proceeds go through the NRO route. Even if the property was originally purchased with foreign funds, sale proceeds are typically treated as NRO for repatriation purposes.
  • The USD 1 million cap applies per financial year, not per transaction. Multiple smaller NRO transfers within the same year count cumulatively toward the cap.
  • Bank fees and currency conversion costs apply on top of tax compliance. Budget for wire transfer charges and exchange rate spreads separately from any tax already paid.

Related Terms

NRE AccountNon-Resident External AccountNRO AccountNon-Resident Ordinary AccountNRINon-Resident Indian

Frequently Asked Questions

Why is repatriation unrestricted from an NRE account but capped from NRO?
Because [NRE accounts](/glossary/nre-account/) hold foreign-earned money that was never subject to Indian tax, while [NRO accounts](/glossary/nro-account/) hold India-sourced income that's already been taxed domestically, the cap and documentation requirements exist mainly to verify tax compliance before funds leave the country.
What documents do I need to repatriate money from an NRO account?
Typically Form 15CA, a self-declaration of tax compliance, and Form 15CB, a chartered accountant's certificate, are required for larger transfers, confirming applicable taxes have been settled before the bank processes the transfer.
Does repatriating money from selling Indian property have special rules?
Yes, sale proceeds from immovable property generally require using the NRO route with the standard documentation, and the repatriation is subject to the same USD 1 million annual cap alongside other NRO-based transfers.
Can repatriation limits change over time?
Yes, the specific cap and documentation rules are set by RBI and FEMA regulations, which can be revised, so check current limits rather than assuming a figure from a prior year still applies.
Is there a fee for repatriating money from India?
Banks typically charge a transfer or wire fee, and currency conversion spreads apply, on top of any tax already settled through the 15CA/15CB process, so factor these costs in when planning larger transfers.