Repatriation of funds of NRI from India:

NRI living may be having passive income sources from India such as Rental income , capital gain , Interest income , investment returns etc. NRI sending money abroad from India is called as Repatriation of funds. Repatriation of funds can be done online via using banking channels and meeting legal formalities. To help NRI to transfer funds out of India RBI allows an amount of upto USD 1 million per financial year.  If the NRI brings in money from abroad to repay the home loan amount taken to buy the property, the bank from which he took the loan will allow him to freely repatriate an equivalent amount to what was brought in the country from abroad.

Indian government introduced various measures like such as PM Gati Shakti, single window clearance, GIS-mapped land Bank, reduced corporate tax rates, Make in India initiative to encourage foreign investment. But on the other hand, rules and regulations for NRI repatriation of funds from India are very strict, complex which makes process time-consuming and lengthy.

Repatriation of NRI funds refers to transferring funds from India to NRI’s country of residence (by way of bank account). Repatriation of funds by NRI should be made according to guidelines of Foreign Exchange Management Act (FEMA) , Reserve Bank of India (RBI), or any other applicable law as case may be.There are different types of accounts available for investment for NRI such as -NRE account, NRO account and FCNR account. In this article we will have complete guidance on repatriation of funds of NRI from India.

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List of Assets/Funds/Income Repatriable by NRI:

1. Inheritance of Assets
2. Sale of Asset In India
3. Income Earned from Investments in India
4. Income earned on such Assets/Funds held in India befor you move to abroad
5. Rental Income Earned in India
6. Funds that you transferred to India as overseas remittances

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Repatriation of funds of NRI from NRE account:

What is NRE Account?

Non Resident External (NRE) account is an account used to park your foreign earnings in Indian rupee   denomination. So, it can also be referred to as an Indian rupee denominated account.

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Provisions regarding repatriation of funds from NRE account:

1. The main benefit of this account is that you are allowed to repatriate whole foreign currency without any limit.
2. The interest income earned on the amount in an NRE account does not attract any tax implication i.e it is taxfree.
3. NRI can transfer interest or principal amount from NRE account to their foreign account without any restrictions.

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List of Documents required for repatriation of funds from NRE account:

1. 1. Passport of remitter
   2. PAN card,VISA/Passport/OCI card
   3. Latest Bank account statement
   4. Bank confirmation that- account holder holds NRE account with bank.

• Form A2- FEMA declaration or outward remittance form is required. NRI has to give all required details such as amount of remittance, currency, beneficiary,etc. Once remitter fill these required forms nd submit it to bank, process of repatriation will get approved and start.

 

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Repatriation of Funds of NRI from NRO Account

What is NRO Account?

Non-Resident Ordinary account is a popular account used by NRI to manage their deposit or income earned in India.Main feature of the account is, It is possible to receive funds in any foreign / indian currency in this account. But for withdrawal only Indian currency is allowed.

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Provisions regarding repatriation of funds from NRO account:

1. Funds are not freely repatriable from NRO account unlike as NRE/FCNR account. There re specific limitations imposed on amount of repatriation of fund of NRI from NRO account.
2. Repatriation possible only incase taxes are paid /have been deducted from income.
3. Returns on investments made in NRO account are not allowed to repatriate.
4. Income earned from sourcessuch as- rent, salary, dividend, pension, earnings of the sale of immovable property ( Land, house) are repatriable up to USD 1 million in a financial year.

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List of Documents required for repatriation of funds from NRO account:

1. Application form from bank account of NRI in country of residence
2. PAN card,VISA/Passport/OCI card
3. Form 15CA: This refers to self declaration by NRI giving details about payment and taxes payable theron.
4. Form 15CB: Chartered Accountant certificate certifying that all taxes payable on such funds on remittance are paid by NRI.
5. Form A2- FEMA declaration or outward remittance form is required. NRI has to give all required details such as amount of remittance, currency, beneficiary,etc.
6. Supporting documents to verify sources of funds to be repatriated

You are required to self attest and e-mail self attested copies to bank with request to proceed repatriation. When request is processed , you can repatriate your funds.

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Repatriation of funds of NRI from FCNR account:

What is FCNR Account?

 This account is mainly used for purpose of mking fixed deposit investment of foreign currency. Benefits of this account are- interest is tax free and gives protection from currency fluctuations. 

Provisions regarding repatriation of funds from FCNR account:

1. Funds in FCNR account are fully and freely repatriable.
2. Provisions regarding funds repatriation by NRI are similar incase of FCNR account and NRE account.

List of Documents required for repatriation of funds from FCNR account:

1. PAN, Passport of NRI/OCI card
2. Latest bank account statement
3. Bank confirmation that- account holder holds NRE account with bank.
4. Form A2- FEMA declaration or outward remittance form is required. NRI has to give all required details such as amount of remittance, currency, beneficiary,etc

Once remitter fill these required forms nd submit it to bank, process of repatriation will  get approved and start.

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What is Limit for NRI Repatriation of Funds from India

In India, if any NRI wants to repatriate money from India to his country of residence , then specific prescribed repatriation guidelines and limits applicable are to be complied. Such prescribed limits for different typesa nd sources of income are-

Sr. No.	Nature of income to be repatriated	LImit for Repatriation by NRI
1	Current income (in nature of salary,pension, interest,dividend,rent ,etc.) of Past year or current year	No limit
2	Repatrition of capital funds by NRI except from immovable property (eg- capital funds held in fixed deposits, mutual funds, shares,etc. including inheritnce)	USD 1million per financial year
3	Repatrition of capital funds by NRI  from immovable property (other than agri land, farm house)-
3a	Property purchased in foreign currency:-	Full sale proceeds are free to repatriate. Only incaseof residential property, repatriation of funds by NRI from maximum 2 residential properties in India is allowed.
3b	Property purchased  other than foreign currency:-	USD 1million per financial year

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RBI Approval for NRI repatriation of funds from India

If NRI want to repatriate in excess of above mentioned limit , thenRBI approval is required.RBI can approve the enhanced limit if satisfied with cause and documnetstion bt remitter. Also, incase of emergencies like medical emergency, education,etc. RBI may extend repatriation limit.

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FEMA Rules For NRI Repatriation

Every repatriation offunds by NRI shoul fulfill and comply with applicable tax compliances.

Balance held in NRE account dont have any limitation on repatriation of funds by NRI.

Balance held in NRO account need must arise from legitimate dues receivable in India. Borrowed funds or transferred funds from another NRO account should not be included.

Repatriation of funds by NRI from sale of maximum 2 properties in Inida is only allowed.

NRI can repatriate current yaer income cumulatively in that financial year or in subsequent financial years.

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