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.
directives with respect to repatriation of funds from India:
government of India and the RBI has set up certain directives
to facilitate NRI repatriation to India.
- Current Income
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.
The sale proceeds of the property is
permitted for repatriation as under:
- 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.
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
exemption from RBI permission comes only up to the
value of purchase consideration paid in Foreign
- RBI permission
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
The sale proceeds or realization of
assets can be allowed for repatriation only under the
- Exempted from RBI
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
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
The sale proceeds or realization
of NRI assets is permitted for repatriation as follows:
Deposits with Banks/Firms/Companies.
- Life Insurance Maturity
- Sale proceeds from shares &
- 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
- NRIs/PIOs are allowed to
repatriate the funds held in their NRO A/c
i. education of their children, where they
can spend up to USD 30000 per academic year.
medical expenses abroad of the account holder or his family
members up to USD 100000.
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.