Repatriation and remittance from India
Guidelines governing repatriation for Non-Resident Indians (NRI’s), Overseas Citizens of India (OCI’s) & Persons of Indian Origin (PIO)
NRIs are allowed to repatriate an amount up to USD one million, per financial year (from April to March), out of balance held in their NRO account / sale proceeds of assets/ assets acquired in India by way of inheritance/ legacy. Repatriation is subject to submission of necessary documentary evidence with the AD Bank and tax compliance in respect of the sums being repatriated.
Remittance out of India except certain remittances covered under the RBI’s exemption list) requires a CA certificate in the Form 15CB and a self-declaration by the remitter in Form 15CA. The AD Bank will demand these forms to be submitted online before effecting remittance. This is done to ensure that the funds being remitted are sourced through legal means and the taxes due thereon are duly deducted and paid prior to effecting remittance.
Repatriation of proceeds from sale of property in India
NRI’s, OCI’s & PIO’s may repatriate outside India, the sale proceeds from residential property provided:The immovable property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him
The amount for acquisition of the immovable property was paid in foreign exchange received through banking channels or out of funds held in FCNR(B) account or NRE account [In case an immovable property in India has been purchased out of housing loans (being compliant with extant FEMA guidelines), and the repayments for such loans are made out of remittances received from abroad through banking channels or by debit to the NRE/ FCNR(B) account of such person, such repayments may be treated as equivalent to foreign exchange received]
The remittance in a given year is capped under the abovementioned limit of US dollars 1 million and is limited to the sale proceeds of up to two immovable properties held by NRIs/PIO.
