Repatriation means remittance outside India of funds or any type of assets in India which have been liquidated. Every NRI, PIO and Foreign National is keen to repatriate his income and rupee assets to his place of residence outside India or to hold it as Convertible Forex in India. The Indian Government has liberalized provisions as to repatriation for all the assets whether acquired as NRI from Forex or Rupee Funds or which were held by him when he was a resident in India.
Repatriation of assets
NRI, PIO and Foreign nationals (certain specified assets) can remit up to USD 1 million per Financial year (FY) provided appropriate documentation is submitted to the Bank and subject to payment of applicable taxes.The remittances made during the FY shall be made through the same Bank. During the year services of only one Bank can be availed for repatriating funds. All types of current income net of taxes is freely repatriable in India.
- If an immovable property was acquired in foreign exchange, the person resident outside India who is a citizen of India or PIO can repatriate up-to the amount paid for acquisition of such immovable property received through outside India or through FCNR /NRE account. Such repatriation is restricted up to two residential properties. Repatriation of the balance amount can be made under the USD 1 million limit available every FY.
- However, if the immovable property was acquired otherwise than in foreign exchange, the sale proceeds of immovable property can be repatriated net of taxes up to USD 1 million per FY.
In case a person resident outside India who wants to repatriate an amount exceeding the above limits, special permission of the Reserve Bank of India (RBI) needs to be obtained.
Repatriation of assets other than immovable property
An amount up to USD 1 million per FY can be remitted outside India (net of taxes). However, in case a person resident outside India wants to repatriate an amount exceeding the above limit, special permission of the RBI needs to be obtained.No permission of RBI is required for remittance of winding up proceeds of a branch or office (other than a Project Office) in India established by a person resident outside India.
RBI has full power and authority to permit repatriation without any limit. Further, NRE account balances are freely repatriable.
Documents bank will require
- Form 15CA.
- Form 15CB in duplicate signed by the Chartered Accountant
- Form A2 – Your bank should supply you with this form, a sample form A2 is included in this book.
- Application for foreign exchange- this form would also be supplied by the bank
