Repatriation of Funds

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.

Frequently asked questions

NRI intends to remit funds outside India from his NRO a/c. What income is eligible for repatriation?


All types of income (including Dividend, Interest, Rent, distribution from any type of deposit, Sale proceeds of Mutual Funds, Shares, Immovable property, profits of business as partner/ proprietor) are eligible for repatriation (net of Income Tax).




What is the maximum amount that NRI can remit outside India in a FY?


The existing regulations permit NRIs to remit up to USD 1 million per FY for any bonafide purpose out of the balances in their NRO a/c. The current income i.e. interest income, rental income, etc. can be freely repatriated i.e. without utilizing the limit of USD 1 million.




How can NRI obtain Form 15CA and Form 15CB?


Form 15CB is a certificate issued by a Chartered Accountant. A Chartered Accountant shall verify that due taxes have been paid on the amount intended to be repatriated and shall subsequently issue Form 15CB. On the basis of this certificate, Form 15CA is required to be filled online on the income tax e-filing site (https://incometaxindiaefiling.gov.in/). NRI is required to register herself on the income tax website for the said purpose. The filled Form 15CA generated from the site shall be printed and signed by NRI and submitted along with Form 15CB at the branch from where the remittance is being made. Alternatively, Form 15CA can be electronically signed through Digital Signature Certificate (DSC) of the remitter.




NRI acquired a property for Rs. 8 crore in Foreign Exchange. He subsequently sold the property for a consideration of Rs. 17 crore. What is the amount that the NRI can repatriate in a single FY?


The aforesaid transaction is tabulated below for easy reference




Are there any limits for making an outward remittance from a NRE a/c?


NRE a/c balances are freely repatriable. There is no limit specified for outward remittances from such a/cs.




What is the process for making an outward remittance from a NRE a/c?


NRI will have to approach his AD Bank where he holds his NRE a/c to make an outward remittance.




Can NRI who has registered a mandate-holder in her NRE a/c make an outward remittance from the a/c as well?


Mandate holder in the NRE a/c can initiate an outward remittance; however, it shall be ensured that the beneficiary of the remittance is the a/c holder.





 

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