As a Non-Resident Indian (NRI), repatriating funds from India back to your country of residence is a common need—whether for retirement, family support, or investments abroad.
Governed by the Foreign Exchange Management Act (FEMA Act 1999) and RBI guidelines, the process is straightforward but requires compliance to avoid penalties. In 2025, key FEMA rules emphasize source verification, tax clearance, and account-specific limits. NRIs often seek guidance from experienced FEMA consultants in India to ensure smooth and compliant remittances.
Types of Accounts and Repatriation Rules
NRE / FCNR Accounts
These accounts are fully repatriable. NRIs can remit unlimited amounts, and there is no tax on interest earned. The principal is also tax-free under FEMA and RBI regulations.
NRO Account
Repatriation from an NRO account is limited to USD 1 million per financial year (April–March), after applicable TDS and CA certification on sources. Any amount exceeding this limit requires prior RBI approval. Proper documentation and certification are critical, and many NRIs rely on FEMA consultants in Hyderabad or other major cities to handle this process efficiently.
Case Studies
Case 1: Sale of Inherited Property
An NRI inherits a Mumbai apartment and sells it for Rs. 12 crore. The sale proceeds are credited to the NRO account. After TDS, the NRI can repatriate up to USD 1 million in a financial year using Form 15CA and Form 15CB, with a Chartered Accountant certifying the source of funds (inheritance deed and sale agreement). Any excess amount remains in the NRO account or requires RBI approval under FEMA regulations.
Case 2: Income from Indian Sources
An NRI earns Rs. 12 lakh annually from salary, rent, interest, dividend, and business and professional income in India, all credited to the NRO account. After applicable TDS and tax deductions, the balance can be repatriated up to USD 1 million per financial year. Proof of source, TDS certificates, and Form 15CA/CB must be submitted to the bank. If the income is routed through an NRE account, unlimited remittance is permitted under FEMA.
Case 3: Sale of Shares and Investments
An NRI sells Indian stocks worth Rs. 1 crore, resulting in long-term capital gains. The proceeds are credited to the NRO account, with TDS deducted at 12.5%. The NRI can repatriate up to USD 1 million after a CA verifies portfolio valuation and sale documentation. DTAA provisions may be used to claim tax credit abroad. If routed via an NRE account, remittance is unlimited as per FEMA Act 1999.
Case 4: Gifts
An NRI receives gifts worth Rs. 50 lakh from a resident relative (as defined under the Companies Act, 2013), credited to the NRO account. The amount can be repatriated up to USD 1 million per financial year. Gifts received from close relatives are tax-free under Indian tax laws and FEMA guidelines.
Sources of Income for NRIs in India
The general sources of income in India for NRIs include salary income, business and professional income, rental income from house property, capital gains, interest income, dividend income, and agricultural income—provided such income accrues or is received in India. Foreign-sourced income is not taxable in India for an NRI.
How FEMABIDE Can Help
At FEMABIDE, we are experienced FEMA consultants in India, supporting NRIs in handling their Indian transactions in a legally compliant and tax-efficient manner. From repatriation planning to FEMA compliance, documentation, and RBI reporting, our team of FEMA consultants in Hyderabad ensures a smooth and penalty-free process.
