Sending money to India is straightforward. Getting it back out depends on which account holds it.
An NRI with funds in an NRE account can transfer them abroad at any time, in any amount, with no annual cap. An NRI with funds in an NRO account faces a USD 1 million limit per financial year on capital proceeds, plus a documentation process that involves a chartered accountant and the income tax portal. The difference is not administrative. It is structural, and it traces back to where the money originated .
NRE repatriation: no limit, no tax on interest
An NRE account holds foreign earnings remitted to India. Because the money entered India from abroad, the RBI treats it as fully repatriable. Principal and interest can both be transferred overseas without a cap, subject only to standard bank process checks .
The interest earned in an NRE account is exempt from Indian income tax as long as the holder remains a non-resident under FEMA. No TDS is deducted, and no Form 145 or 146 is required for the transfer .
For NRIs planning to move money back overseas, this makes the NRE account the cleaner route. The funds move, and the paperwork is minimal.
NRO repatriation: the USD 1 million limit and what it covers
An NRO account holds income earned in India. Rent, dividends, pension, interest, and proceeds from selling Indian assets all flow into it. The repatriation rules here are more layered .
Current income, which includes rent, dividends, interest, pension, and salary, can be transferred abroad without any upper limit, as long as the applicable taxes have been paid. The USD 1 million annual cap does not apply to these categories .
Capital income is where the cap bites. Proceeds from the sale of property, redemptions from mutual funds or shares, matured fixed deposits, and inherited assets all count toward the USD 1 million limit per financial year. The limit applies cumulatively across all NRO accounts and resets every April 1 .
If the amount to be repatriated exceeds USD 1 million in a single year, prior RBI approval is required. That approval is generally granted only for specific circumstances such as medical emergencies or overseas education expenses .
The documentation: Form 145 and Form 146
From April 2026, the forms that govern NRO repatriation changed. Form 145 and Form 146 replaced Form 15CA and Form 15CB respectively .
The practical consequence is that the chartered accountant needs a filed income tax return before issuing Form 146. Most CAs will not certify the form without the relevant ITR on record. If the ITR has not been filed for the financial year in which the gains arose, the repatriation cannot proceed until it is .
Source-of-funds documentation
Beyond the tax forms, the bank requires proof of where the money came from. The specific documents depend on the source .
For property sale proceeds, the sale deed and the purchase deed are needed, along with the property declaration. For rental income, the rental agreement or receipt. For dividends or interest, the account statement or investment proof. For inherited assets, supporting documents establishing the inheritance .
If the source is not documented, the bank cannot process the transfer.
The one-bank requirement
The RBI requires NRO repatriations to be routed through a single Authorised Dealer bank per financial year. The purpose is to track the USD 1 million limit across all NRO accounts. If transfers are spread across multiple banks, the limit cannot be monitored .
For NRIs with accounts at more than one bank, this means choosing one bank to handle all repatriation for the year.
The step-by-step process
The process involves coordination between the bank and the chartered accountant.
Step 1: Ensure tax compliance. Verify that all applicable taxes, including TDS, have been paid on the funds to be repatriated. The bank cannot process the transfer otherwise .
Step 2: File the income tax return. The ITR for the relevant financial year must be filed before the CA issues Form 146 .
Step 3: Obtain Form 146 from the chartered accountant. The CA reviews the transaction, certifies the source and nature of the funds, and confirms tax compliance .
Step 4: Complete Form 145 online. Submit the self-declaration digitally through the Income Tax e-filing portal, then download and sign the acknowledgement .
Step 5: Gather supporting documents. Form A2, passport copy, PAN, source-of-funds proof, and the signed Form 145 acknowledgement .
Step 6: Submit to the authorised dealer bank. The bank verifies the documentation, checks tax compliance and source of funds, and confirms the transfer falls within the USD 1 million limit .
Step 7: Receive confirmation. Once processed, the transfer proceeds via SWIFT to the overseas account .
Banks typically process NRO repatriation within 7 to 10 business days after all documents are submitted .
What retail investors should take from this
The account structure determines the repatriation experience. An NRI who funds investments from an NRE account keeps the exit route clean and uncapped. An NRI who uses an NRO account accepts the USD 1 million limit and the documentation process that comes with it.
For NRI investors in Indian mutual funds or shares, the source of funds at the time of purchase is what decides the repatriation limit at the time of sale. Investments made through NRE accounts are freely repatriable. Investments made through NRO accounts fall under the USD 1 million cap .
The tax clearance process is not a formality. The ITR must be filed, the CA must certify, and the bank must verify. Without all three, the money does not move.
Frequently Asked Questions
1. How much money can an NRI repatriate from India?
From an NRE account, there is no limit. Principal and interest are fully repatriable. From an NRO account, current income such as rent and dividends can be transferred without a cap after tax compliance, but capital proceeds from property sales, mutual fund redemptions, and inherited assets are limited to USD 1 million per financial year .
2. Can NRO repatriation be split across financial years?
Yes. The USD 1 million limit resets on April 1. If the amount exceeds the cap, splitting the transfer across two financial years avoids the need for RBI approval .
3. Why does the chartered accountant need the ITR before issuing Form 146?
The CA certifies tax compliance on the remittance. Without a filed ITR, the CA cannot verify that the correct tax has been computed and paid. Most CAs will not issue Form 146 without it .
4. Can funds be transferred from NRO to NRE instead of directly overseas?
Yes. NRO-to-NRE transfers are permitted, subject to the same USD 1 million limit, tax clearance, and documentation. Once the funds are in the NRE account, they become freely repatriable .
