NRI Repatriation Made Simple: Key Forms, Limits, and Tax Guidelines

Repatriation Overview:

Definition: Repatriation is the transfer of funds from an NRO (Non-Resident Ordinary) account to an NRE (Non-Resident External) account or an overseas bank account.

Sources of Funds:

• Funds/assets held when migrating from India.
• Inheritance of funds/assets.
• Overseas remittances made to India for investment or other purposes.
• Income earned on assets/funds held in India through NRI accounts.

Documentary Evidence Required:

• Form 15CA: An undertaking submitted on the Tax Department website.
• Form 15CB: A certificate from a Chartered Accountant confirming tax payment on remittances.
• Form A2/Outward Remittance Form: Transfer funds from NRO to NRE or overseas accounts.
• FEMA Declaration/Transfer Request: This is for transferring funds from NRO to NRE accounts.

Other Documents: Any additional documents required by the AD (Authorized Dealer) Bank.

Special RBI Approval:

• Beyond Limits: RBI may grant special approval for repatriation exceeding standard limits in hardship cases (e.g., medical expenses, education, home purchase).

General Points:

• Taxation: Repatriation is subject to payment of applicable taxes in India.
• Current Income: It can be repatriated in the same year or carried forward cumulatively to subsequent years.
   
• NRE Account: Funds in NRE accounts are fully repatriable without limit.
• NRO to NRE/Overseas Transfer: Must be done through a single AD Bank per financial year.
• Legitimate Funds: Balances in NRO accounts should come from legitimate sources, not borrowed or transferred from other NRO accounts.
• Annual Limit: If you don’t use the annual limit of USD 1 million, it won’t roll over to the next year. 
   
• Gifts from Relatives: Repatriation of gifts from resident relatives is limited to USD 250,000 per year.

Also Read: What are key criteria for choosing a right bank account?