Repatriation Of Assets

What is Repatriation?

Ans. The transfer of funds / income from NRI’s NRO a/c to his/her NRE a/c or Overseas foreign a/c is termed “Repatriation”.

What are the types of income and amount of income that are eligible for repatriation?

Ans. The following are eligible for repatriation:
a.  All types of current income i.e. dividend distribution from any type of Mutual Funds and Shares and securities, Interest, Rent, profits of business as partner/ proprietor without any limit and
b. Capital funds held in NRO a/c from sale proceeds of investment in Mutual Funds, Shares, Immovable property, including inheritance and bank balances (net of Income Tax) upto USD 1 million.

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

Ans. 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 without any limit and other funds held in NRO a/c can be repatriated subject to USD 1 million. However, one may apply for Special Permission from RBI to repatriate above USD 1 million which may be approved on facts of each case.

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?

Ans. He can freely repatriate USD equivalent to the inward remittance to acquire the property (being Rs. 8 Crores in the present case) and balance amount within the yearly limit of USD 1 million can also be repatriated.

What documents are required to be submitted to AD Bank by NRI to remit funds from his / her NRO a/c to his / her NRE a/c?

Ans.

NRI is typically required to submit following documents to AD Bank for remittance of funds outside India or NRE a/c:
1. Form 15CA – Self Declaration by remitter of funds (NRI)
2. Form 15CB – Chartered Accountant’s Certificate for certifying the appropriateness of taxes deducted / paid
3. FEMA Declaration and Transfer Request
4. Documentary proof of sources of funds and payment of applicable taxe
5. Any other documentary proof requested by AD Bank

What documents are required to be submitted to AD Bank by NRI to remit funds from his/ her NRO a/c to his/ her Overseas a/c?

Ans.

1. Form 15CA – Self Declaration by remitter of funds (NRI)
2. Form 15CB – Chartered Accountant’s Certificate for certifying the appropriateness of taxes deducted / paid
3. Form A2 and Outward Remittance Form
4. Documentary proof of sources of funds and payment of applicable taxes
5. Any other documentary proof requested by the AD Bank

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

Ans. 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 website shall be printed and signed by NRI and submitted along with Form 15CB to AD Bank from where the remittance is being made. Alternatively, Form 15CA can be electronically signed through Digital Signature Certificate (DSC) of the remitter (NRI).

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

Ans. NRE a/c balances are freely repatriable without any limit.

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

Ans. NRI may approach his AD Bank where he holds NRE a/c to make an outward remittance. This can be usually also done through netbanking (online).

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

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