Repatriation means remittance outside India of funds or any type of assets in India which have been liquidated.
Sources of funds and assets held in India by NRI can be:
a. Assets / Funds held when they left India; or
b. Inheritance of Assets / Funds; or
c. Assets / Funds created out of remittance made from overseas for investments in India
*An NRI may be eligible to repatriate a sum greater than USD 1 million in a FY if he / she obtains special approval from RBI.
Documents required to be submitted for Repatriation of Funds:
The Remitter of funds is required to submit following documents to their AD Bank for repatriation of funds outside India:
a. Form 15CA – a self-declaration
b. Form 15CB – a Chartered Accountant’s Certificate
c. Form A2 and Application for outward remittance
d. Documentary proof of the sources of the funds
e. Any other documents required by AD Bank
Points to Remember:
If NRI does not use the yearly limit of USD 1 million, he cannot utilize a/c the same in subsequent years.
The current income earned in any year is permitted to be repatriated in the same year or in any subsequent year(s).
Recently, RBI has instructed that gifts received from residents is permitted to be credited to NRO a/c of NRI up to USD 250,000 (per FY) only and thus indirectly limiting repatriation of such receipt up to this limit.
Remittances from NRO a/c to NRE a/c or Overseas a/c can only be done through a single AD Bank in a particular FY. Thus, NRI has to use the services of the same bank he had used previously, if he wishes to remit funds again in the same FY.