An NRI or OCI cardholder can remit up to one million US dollars per financial year from an NRO account, covering sale proceeds of property, inheritance, rent, pension and other Indian assets, after paying applicable tax. The bank requires evidence of the source of funds and, for most remittances, an online declaration in Form 15CA supported by a chartered accountant's certificate in Form 15CB. Balances in NRE and FCNR accounts can be sent abroad freely.
- NRO limit
- USD 1 million per financial year
- NRE and FCNR
- Freely repatriable
- Key forms
- 15CA and 15CB
- Regulator
- RBI under FEMA
Your accounts decide how easily money moves
| Account | What goes in | Repatriation |
|---|---|---|
| NRE | Foreign earnings remitted to India | Principal and interest freely repatriable; interest tax-free in India |
| FCNR(B) | Foreign currency term deposits | Freely repatriable |
| NRO | Income and assets arising in India: rent, sale proceeds, inheritance, pension | Up to USD 1 million per financial year after tax |
On becoming non-resident you are required to redesignate resident savings accounts as NRO. Continuing to operate a resident account is a contravention of the exchange control law, and funds lying in such an account cannot be repatriated until it is regularised. See FEMA compliance.
The one million dollar facility
Under the Foreign Exchange Management (Remittance of Assets) Regulations, 2016, an NRI or person of Indian origin may remit up to one million US dollars in a financial year, April to March, out of balances in the NRO account and sale proceeds of assets, including assets acquired by inheritance. The ceiling is per person, not per transaction or per bank, and covers all such remittances together. Amounts beyond it need Reserve Bank approval, which is granted sparingly, so larger sums are usually spread across financial years or across family members who each hold a share.
A transfer from NRO to NRE counts against the same ceiling and requires the same documentation. Foreign nationals not of Indian origin who inherit from a resident or have retired from employment in India have a similar facility with additional conditions.
Sale proceeds of property
Where the property was bought with rupee funds or inherited, the proceeds go to NRO and move under the one million dollar facility. Where it was bought with foreign exchange brought in through banking channels or with NRE or FCNR funds, the amount originally paid in foreign exchange can be repatriated outside that limit, restricted to two residential properties in a lifetime. A housing loan repaid from foreign remittances is treated as foreign exchange brought in to that extent.
The bank will ask for the sale deed, proof of how the property was acquired, evidence of tax paid or deducted and the chartered accountant's certificate. Agricultural land, farmhouses and plantation property can be sold only to resident Indian citizens, and those proceeds also go through NRO. Plan the tax first: see TDS and capital gains.
Inheritance and gifts
Money and assets inherited from a person resident in India are repatriable within the same annual ceiling on production of the will or succession documents and the death certificate. India does not tax the inheritance, but the bank still needs the accountant's certificate confirming that no tax is due. Gifts received from resident relatives are credited to NRO and likewise fall within the limit; the resident donor is separately subject to the Liberalised Remittance Scheme ceiling when sending money abroad directly.
Forms 15CA and 15CB and bank process
Form 15CA is an online declaration by the remitter on the income tax portal describing the payment and the tax position. Where the remittance is chargeable to tax and exceeds five lakh rupees in the year, it must be backed by Form 15CB, a chartered accountant's certificate stating the nature of the remittance, the tax deducted and the treaty position. Some remittances are exempt from these forms, but banks commonly insist on them for transfers out of NRO accounts regardless.
We prepare the source-of-funds file, coordinate the certificate, and deal with the bank's compliance queries. Where the money is stuck because of an old resident account, missing tax deduction or a name mismatch in records, we resolve that first. Remember that receiving a large sum abroad may have reporting or tax consequences in your country of residence, which your local adviser should confirm.
Mistakes that cost NRIs time and money
- Receiving sale proceeds in a relative's account.
- Continuing to use a resident savings account.
- No record of how the property was originally paid for.
- Exceeding the annual limit by splitting transfers across banks.
A typical situation
A remittance planned over two years
A seller abroad receives proceeds well above one million US dollars from an inherited property. The file for the bank contains the will, mutation, sale deed, tax return and the accountant's certificate. One million dollars is remitted before 31 March and the balance in April, in the new financial year. A co-heir remits her own share under her separate limit.
Illustration only, based on patterns we commonly see. It is not a real client's case and outcomes depend on the facts.
If you live in...
The Indian law is the same wherever you live. These are the points that differ by where you are.
USA and Canada
US persons should report the receiving account and any inheritance on the required forms in the year of receipt.
UK and Europe
Keep the Indian tax documents for your UK return; the remittance itself is not the taxable event.
UAE and the Gulf
Transfers from NRE accounts need no certificate; only NRO-origin funds go through the one million dollar route.
Country pages: UAE, Saudi Arabia, Qatar, Kuwait, Oman, Bahrain
Australia, New Zealand and Asia
Australian and New Zealand banks may ask for source-of-funds documents on receipt; the Indian file serves that purpose too.
Country pages: Australia, New Zealand, Singapore, Malaysia
Documents you will need
The bank's compliance team will want to see:
- PAN and passport or OCI card
- NRO and NRE account details
- Sale deed and original purchase deed
- Proof of tax paid or TDS certificates
- Will, succession certificate or gift deed
- Death certificate, for inheritance
- Bank statement showing the credit
- Overseas bank account details for the transfer
How we handle it for you
Source and route check
We classify the funds, confirm the applicable limit and spot anything that needs regularising.
Tax position
Tax due is computed and paid, or the basis for nil tax is documented.
Certificates
Form 15CB is obtained and Form 15CA filed online.
Bank submission
The remittance application is lodged with the full file, and queries are answered.
Confirmation
You receive the SWIFT advice and a record for your tax file abroad.
Frequently asked questions
How much money can an NRI transfer from India in a year?
Up to one million US dollars per financial year from NRO balances and sale proceeds of Indian assets. Funds in NRE and FCNR accounts are outside this limit and freely transferable.
Can an NRI repatriate money from the sale of inherited property?
Yes, within the one million dollar annual limit, on producing the inheritance documents, the sale deed, proof of tax payment and the chartered accountant's certificate.
Are Forms 15CA and 15CB always required?
Form 15CA is required for most remittances; Form 15CB is needed where the amount is taxable and exceeds five lakh rupees in the year. Banks often ask for both for NRO remittances even where an exemption applies.
Can I transfer money from my NRO account to my NRE account?
Yes, subject to tax being paid and within the same one million dollar annual ceiling, with the same documentation as an outward remittance.
What if I need to remit more than one million dollars?
You can spread the remittance over more than one financial year, or apply to the Reserve Bank through your bank for specific approval, explaining the need and source.
Is repatriated money taxed again abroad?
That depends on the tax law of your country of residence and its treaty with India. Many countries tax worldwide income or gains but give credit for Indian tax. Take local advice before the transfer.
How long does a bank take to process the remittance?
With complete documents, usually a few working days. Delays come from missing source documents or tax certificates.
Can rent from Indian property be sent abroad?
Yes. Current income such as rent, dividends and pension is repatriable after tax, in addition to the one million dollar facility for capital amounts.
