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?