Repatriation Of Assets

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

Ans. 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?

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 i.e. without utilizing the limit of USD 1 million. All other incomes credited in NRO Account can be repatriated subject to 1 million dollar scheme be it current or capital income.

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. The aforesaid transaction is summarized below for easy reference:


Sale Consideration is Rs. 17 Crore, which consists of:

1. Cost Price (acquired in FOREX by inward remittance) ====> No Limit for Repatriation
2. Balance Rs. 9 Crore ====> Eligible for Repatriation upto USD 1 million per FY  (after payment of due taxes)

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 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.

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

Ans. 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?

Ans.

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?

Ans. 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.