NRIs remit their earnings to India from their savings abroad
but would like to enjoy the flexibility of repatriating the same
in case of adversity. With this in view, the government of India
has provided for repatriation of funds from the non-resident's
forex or rupee funds.
RBI directives with respect to repatriation of funds from India:
The government of India and the RBI has set up certain directives
to facilitate NRI repatriation to India.
- Current Income Repatriation
All income either in the nature of interest, dividends, rent,
MFund distribution from any type of deposit, investment or properties
is allowed for repatriation net of income tax in India. This
includes income earned from business in India by a NRI as proprietor,
partner or joint venture entity.
- Immovable Property
The sale proceeds of the property is permitted for repatriation
- Exempted from RBI permission
- Property held for more than 10 years:
NRIs/PIOs are permitted to repatriate the funds held
in their NRO A/c up to US$ 100,000 a year where sale
proceeds of immovable property held by them for period
of not less than 10 years is subject to payment of taxes.
- The property was acquired by the seller in accordance
with the provisions of foreign exchange law in force
at the time of acquisition.
- If the property is sold after 3 years of date
of Purchase Deed or final payment of Purchase consideration
which ever is later. However, the above lock in
period of 3 years is not applicable in case of such
property sold by NRI/PIO on or after 19.08.2002
- Further exemption from RBI permission comes only
up to the value of purchase consideration paid in
- RBI permission essential
For NRI who had acquired immovable property in India, and
who is not eligible under clause I above. Sale proceeds
of such immovable property can be repatriated by obtaining
special permission of the RBI on the ground of adversity.
- Inheritance, Legacy or Bequest
The sale proceeds or realization of assets can be allowed for
repatriation only under the following grounds.
- Exempted from RBI Permission:
NRIs/PIOs will be able to remit up to US$100000 per calendar
year out of the assets in India acquired by them by way
of inheritance/legacies. This has been enhanced to an
overall limit (including remittances of proceeds of immovable
property held for more than 10 years, remittance for education
and medical purposes) of US$ 1 million.
- RBI permission essential:
Besides the clause I seeking exemption from RBI permission
and for any other assets, repatriation is allowed only
after obtaining special permission of the Reserve Bank
India on specific reasons such as adversity and subject
to conditions as specified in the permission.
- Other assets (Without repatriation Rights)
The sale proceeds or realization of NRI assets is permitted
for repatriation as follows:
- Deposits with Banks/Firms/Companies.
- P.F/Superannuation Balance
- Life Insurance Maturity income/claims
- Sale proceeds from shares & securities
- Any other assets/Immovable Property
NRI repatriation is allowed only by obtaining special permission
of the RBI on the ground of adversity etc. and subject to
conditions as specified in the permission.
- NRIs/PIOs are allowed to repatriate the funds held in their
NRO A/c for:
i. education of their children, where they can spend up to USD
30000 per academic year.
ii. the medical expenses abroad of the account holder or his
family members up to USD 100000.
Although, this individual limit has been enhanced to an overall
limit of US$ 1 million, as effective from 13 January 2003
subject to further review by RBI. This can be considered aggregate
of remittances of proceeds of immovable property held for
more than 10 years, proceeds of inherited property, remittance
for education and medical purposes.