Step-by-Step Repatriation Process for NRI Property Sale
| Step | Action | Who Does It |
|---|---|---|
| 1 | Sell property — buyer pays after deducting TDS at NRI rate | Buyer deducts TDS; NRI receives net amount |
| 2 | Sale proceeds credited to NRO account (if funded from NRO/rupee sources) | Bank |
| 3 | File ITR (Income Tax Return) in India for capital gains — claim exemptions if applicable | NRI (through CA) |
| 4 | CA issues Form 15CB — certifying taxes paid and amount eligible for repatriation | Chartered Accountant |
| 5 | NRI files Form 15CA online on income tax portal — declaration before remittance | NRI (through CA) |
| 6 | Submit Form 15CA + 15CB to bank requesting international wire transfer | NRI + Bank |
| 7 | Bank processes transfer to foreign account — within USD 1 million annual limit | Bank |
NRE vs NRO — Repatriation Difference
| Factor | NRE Account | NRO Account |
|---|---|---|
| Source of funds | Foreign earnings remitted to India | Income earned in India — rent, dividends, pension, sale proceeds from NRO-funded purchases |
| Repatriation | Freely repatriable — no limit | Up to USD 1 million per financial year |
| Tax in India | Interest exempt from Indian income tax | Interest taxable in India at applicable rate |
| Property sale proceeds | If property bought from NRE/foreign remittance — proceeds repatriable freely (within purchase price limit) | If bought from NRO/rupee sources — proceeds go to NRO; repatriation limited to USD 1M/year |
Keep all original purchase documents: To prove that the property was originally purchased from NRE/foreign remittance (enabling free repatriation), you need the original bank statements showing inward remittance, the home loan repayment records (if any), and the original sale deed. Without documentation of source of funds, repatriation may be limited to NRO limits. Maintain all records from the time of original purchase.
Related Terms
Frequently Asked Questions
NRI property sale proceeds can be repatriated through: (1) if funded from NRE/foreign remittance — freely repatriable up to original investment amount, (2) if funded from NRO/Indian sources — up to USD 1 million per financial year after tax compliance. Process: CA issues Form 15CB certifying tax compliance → NRI files Form 15CA online → bank processes international transfer.
Form 15CB is a certificate issued by a Chartered Accountant confirming that all applicable Indian taxes on the remittance amount have been paid or will be deducted — it verifies tax compliance before repatriation. Form 15CA is an online declaration filed by the NRI (or their authorised CA) on the income tax portal before the international remittance is made. Both are submitted to the bank to process the wire transfer.
From NRE account: freely repatriable — no annual limit. From NRO account: up to USD 1 million per financial year for current income and capital transactions. This USD 1 million limit covers all NRO repatriations combined — rental income, property sale proceeds, dividends, pension. For very large amounts, plan repatriation across multiple financial years.
Yes. Capital gains tax applies to NRIs selling property in India — same as resident Indians. LTCG (held >2 years) at 12.5% without indexation; STCG (≤2 years) at income slab rate. The buyer must deduct TDS at the applicable NRI rate before paying the NRI seller. NRI can file ITR to claim Section 54 exemption or refund of excess TDS.
Exceeding the USD 1 million per year NRO repatriation limit requires specific RBI approval — the NRI must apply to RBI's authorised dealer (bank) for permission. Such applications are considered on a case-by-case basis with adequate documentation. The alternative is to spread repatriation over multiple financial years within the annual limit.