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Rules For Repatriation Of Current Income Outside India

Repatriation is the process in which funds are transferred freely from one country to another in foreign currency. A NRI can open NRO, NRE & FCNR-B accounts in India and when you move your money from the NRO account to NRE account or to an account in your country of residence, it is called repatriation.

What can be repatriated and how much ?

  • Current Income ( Salary, Investment, Interest, Business Profits) – No Limit
  • Movable Assets ( Sale Proceeds Of Asset Acquired As Inheritance) – USD 1 Million Per Financial Year.
  • Immovable Assets ( Sales Proceeds Of Residential Asset) – USD 1 Million Per Financial Year.

FEMA Rules Regarding Repatriation ?

  • There are Income Tax implications in India every time you repatriate funds.
  • You can cumulatively repatriate current income earned in any year in that year itself or the subsequent years
  • You can transfer or repatriate funds from your NRE account freely without any limit
  • Your NRO account balance should hold legitimate dues receivable in India and not through borrowing from another person or funds transferred from another NRO account
  • In case of residential property, you can repatriate sale proceeds of up to two such properties.

Can You Cross The Repatriation Limit ?

Yes, the RBI does allow you to repatriate funds higher than the preset limits only after explicit approval. The situations in which you may request to increase the permissible limit include medical emergencies, children’s education, or purchasing the property back in your country of residence.