Repatriation and Remittance

Transactions involving repatriation and remittance of funds out of and into India is a subject matter that is governed by the Foreign Exchange Management Act, 1999 (FEMA) read with Reserve Bank of India (RBI) directives. In this regard, the RBI has delegated powers, to 'Authorised Dealers' (AD) of foreign exchange, being banks and/or financial institutions, to process applications and effect repatriation of funds from India.

As defined by the RBI directives, 'Repatriation outside India' means the buying or drawing of foreign exchange from an authorised dealer in India and remitting it outside India through banking channels or crediting it to an account denominated in foreign currency (NRE/ FCNR Account) or to an account in Indian currency maintained with an authorised dealer (NRO Account) from which it can be converted in foreign currency.

As per FEMA, the definition of a Non-resident is determined by a person's intention of stay and not his/her period of stay in the country. So, irrespective of whether you are currently residing in India or not, repatriation out of Indian sourced funds or remittance back to India either for investment, family maintenance or otherwise needs to be done with regard to the applicable FEMA regulations.

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    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.

    Our services in this area include

    • Analysing permissibility of fund repatriation or remittance;
    • Advising on the prevailing limits or conditions thereon, if any; and
    • Providing a CA certificate (Form 15CB) and assisting with submission of self-declaration (Form 15CA) required to repatriate funds out of India.


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