Sending money abroad from India can feel like a maze. But with the right steps, NRIs and HNIs can repatriate their hard-earned money smoothly, legally, and tax-efficiently. Whether you’re repatriating income, investments, or inherited wealth, this guide covers it all — so you can move your funds confidently across borders.
Table of Contents
Understanding Repatriation: What Does It Really Mean?
Repatriation refers to transferring money from your Indian accounts back to your country of residence. For NRIs, it’s a key step in managing global finances — especially when dealing with rental income, investment returns, or selling property in India.
Tip: File your Indian Income Tax Return (ITR) even if you don’t owe taxes. It simplifies future repatriations and builds compliance history.
Eligible Sources of Repatriable Funds for NRIs
You can’t repatriate any money from India — only funds from specific sources are allowed under RBI and FEMA rules.
1. Income Earned in India
Includes rent, dividends, interest on deposits, or professional services rendered in India.
2. Proceeds from Sale of Assets
Includes selling a residential or commercial property, mutual funds, stocks, or other investments.
3. Inherited Assets
NRIs can repatriate money received from inheritance, provided the proper legal documents (like a will or succession certificate) are in place.
Types of Accounts Used for Repatriation
Choosing the right bank account is crucial for seamless repatriation.
NRE Account – For Fully Repatriable Funds
Ideal for income earned abroad. Both principal and interest are completely tax-free and fully repatriable.
NRO Account – For Indian Income
Use this account to deposit income from India. Funds are repatriable up to $1 million per financial year, subject to taxes and documentation.
FCNR Account – For Foreign Currency Deposits
Great for protecting against forex risk. Funds are tax-free and fully repatriable.
Step-by-Step Process to Repatriate Funds from India
Here’s a simplified path to follow:
Step 1 – Ensure Proper KYC
Make sure your bank records are updated with your NRI status, PAN, and overseas address.
Step 2 – Choose the Right Account
Use an NRE account for foreign earnings or NRO for local income. Joint accounts with resident Indians may complicate repatriation — avoid them if possible.
Step 3 – Pay Applicable Taxes
You must pay tax on income earned in India before repatriation. Rental income, capital gains, or interest earned on NRO accounts is taxable.
Step 4 – Get Form 15CA & 15CB
These are crucial for funds being transferred abroad from an NRO account:
- Form 15CA: A self-declaration of the payment and tax liability.
- Form 15CB: Certified by a Chartered Accountant confirming tax compliance.
Step 5 – Submit Documents to the Bank
Along with 15CA/CB, you’ll need:
- PAN Card
- Tax payment challans
- Proof of source of funds
- Bank repatriation request form
Step 6 – Bank Processes Transfer
Your bank will verify documents and process the foreign remittance. Most private banks take 2–5 working days.
Tax Implications for NRIs During Repatriation
Understanding tax is crucial for staying compliant and saving money.
On Interest from NRO Account
Taxed at 30% (plus surcharge and cess). You can claim relief under DTAA with your country of residence.
On Capital Gains
Property sales, mutual funds, or equity gains are subject to capital gains tax. Indexation benefits are available for long-term assets.
On Inheritance
No inheritance tax in India. But gains from inherited assets (e.g., property sale) are taxable.
Tip: Use a tax consultant to plan repatriation from high-value asset sales to reduce outgo legally.
Real NRI Scenario: Property Sale Repatriation
Meet Ravi, a UAE-based NRI who sold his flat in Pune for ₹1.2 crore. Here’s how he repatriated ₹90 lakhs:
- Paid capital gains tax after applying indexation
- Got CA certificate (15CB) and filled 15CA
- Submitted all papers to his bank
- Funds credited to his Dubai account in 4 days
Lesson: With compliance and preparation, large sums can be repatriated with ease.
Pro Tips for Hassle-Free Repatriation
Always use a reputed CA for documentation
Start early — allow 1–2 weeks for the entire process
Don’t mix resident and NRI funds
Keep transaction proofs for future audits
Use online portals of your bank for faster uploads
FAQ Section
Q1: Can NRIs repatriate money from India without paying tax?
No. Taxes must be paid on the income before repatriation unless it’s exempt (e.g., NRE interest).
Q2: What is the limit on repatriation from NRO account?
NRIs can repatriate up to USD 1 million per financial year after tax deduction.
Q3: Are mutual fund redemptions repatriable?
Yes, if purchased from NRE/FCNR accounts. Otherwise, the proceeds go to NRO and are repatriable post-tax.
Q4: Do I need RBI approval to repatriate funds?
No, if the amount is within the USD 1 million annual limit and all documents are in order.
Q5: Can inherited money be repatriated?
Yes. With proper legal proof and taxes cleared (if applicable), inherited assets can be repatriated.
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Conclusion: Take the Stress Out of Repatriation
Repatriating money from India isn’t as daunting as it seems — if you follow the rules, prepare the documents, and partner with the right experts. Whether it’s rent, capital gains, or family inheritance, transferring funds overseas can be smooth, legal, and worry-free.