NRE vs NRO — Repatriation Difference
| Account Type | Repatriation | Limit | Documentation |
|---|---|---|---|
| NRE Account | Fully free | No limit | None required |
| NRO Account | Allowed with docs | USD 1 million/year | Form 15CA + 15CB |
| Property sale proceeds | Allowed | USD 1 million/year | Form 15CA + 15CB + CA certificate |
The Liberalised Remittance Scheme (LRS)
LRS applies to Resident Indians sending money abroad — not to NRIs repatriating their own money back. As an NRI repatriating from your NRO account, you fall under FEMA regulations, not LRS. However, if you have returned to India and become a Resident, outward remittances (sending to your old foreign account) come under LRS with a USD 250,000/year limit.
Form 15CA and 15CB — When Required
Form 15CA is an online declaration by the remitter (you) that tax has been paid or the payment is exempt from tax. Form 15CB is a certificate from a Chartered Accountant confirming the tax computation.
Required when remitting from NRO account or repatriating property sale proceeds. Submit both to your bank before initiating the transfer. Most banks won't process international transfers without these documents.
For remittances below ₹5L per financial year for specific purposes (education, medical, travel), Form 15CA is self-certified — no CA certificate needed. Above ₹5L, a CA-certified Form 15CB is mandatory.
TCS on Remittances Above ₹7L
From October 2023, Tax Collected at Source (TCS) applies to outward remittances under LRS above ₹7L per year:
| Purpose | TCS Rate (above ₹7L) |
|---|---|
| Education (loan-funded) | 0.5% |
| Education (self-funded) / Medical | 5% |
| Other purposes (investments, gifts, travel) | 20% |
| LRS for overseas tour packages | 20% |
TCS is not a final tax — it is a tax credit. You can claim it back when filing your ITR, or it reduces your tax payable. However, the 20% TCS on investment remittances is a significant cash flow burden and needs to be planned for.
NRIs repatriating from NRO accounts are not subject to LRS TCS — TDS is already deducted on the income at source (30% on NRO interest). You claim a refund of excess TDS through ITR filing.
Step-by-Step Repatriation Process (NRO)
- Calculate tax on the income/gain and pay any outstanding tax
- Obtain Form 15CB from a CA — they certify the tax computation (cost: ₹3,000–8,000)
- File Form 15CA online at incometax.gov.in using your login
- Submit both forms + bank account details to your Indian bank's forex desk
- Bank processes SWIFT transfer — typically 1–5 business days
- File ITR to claim refund of excess TDS (refund credited within 3–6 months)
Repatriation of Inherited Property
NRIs can repatriate proceeds from sale of inherited Indian property up to USD 1 million per year after paying applicable taxes. For amounts above this, RBI approval is required. Plan the sale timing across multiple financial years if the proceeds exceed the annual limit.