FEMA $1 Million Repatriation Limit
Under RBI FEMA regulations, NRIs and PIOs are permitted to remit up to $1,000,000 USD per financial year (April–March) out of balances held in their NRO accounts from legitimate Indian income or asset sales.
Detailed Explanation & Background
The Foreign Exchange Management Act (FEMA), regulated by the Reserve Bank of India (RBI), governs how funds can move out of India. While funds in Non-Resident External (NRE) accounts are freely and fully repatriable with zero limits, balances in Non-Resident Ordinary (NRO) accounts (such as rental income, dividends, and property sale proceeds) are subject to the $1 Million USD annual repatriation limit.
Under this scheme, an NRI or Person of Indian Origin (PIO) can transfer up to USD 1,000,000 (or its equivalent in foreign currency) per financial year (April 1 to March 31) from their NRO account to their foreign bank account or NRE account.
To execute the transfer, authorized dealer (AD) banks require documentation proving all applicable Indian taxes have been settled, specifically through Form 15CA (taxpayer undertaking) and Form 15CB (Chartered Accountant certification).
Key Rules & Practical Takeaways
- ✓Annual Limit: USD 1,000,000 per financial year per individual (April 1 – March 31)
- ✓Applicable Account: Applies to funds originating in NRO accounts (rental receipts, capital gains, pensions)
- ✓Tax Compliance Mandatory: Funds must be net of Indian taxes with Form 15CA and Form 15CB verification
- ✓No RBI Prior Approval Needed: Transfers within the $1M limit are processed directly by Authorized Dealer (AD Category-I) banks
- ✓Amounts exceeding $1 Million USD in a single financial year require prior approval from the Reserve Bank of India
FEMA NRO Repatriation Process
Repatriating ₹80 Lakhs Property Rental & Capital Proceeds to USA
Scenario: A US citizen (OCI) receives ₹80 Lakhs (~$96,000 USD) in their HDFC NRO account from combined rental income and ancestral land sale.
Because $96,000 USD is well within the $1,000,000 USD annual FEMA window, the bank processes the entire international outward wire transfer within 3–5 business days following submission of Forms 15CA, 15CB, and Form A2.
Frequently Asked Questions
Can I repatriate money from an NRE account without the $1 Million limit?
Yes. Funds held in NRE (Non-Resident External) and FCNR accounts are freely and fully repatriable with no upper ceiling and without requiring Form 15CB.
Does the $1 Million limit apply per bank account or per individual?
The limit applies per individual taxpayer across all combined NRO accounts in India during one financial year.
Is there any Indian government tax on the outward remittance itself?
Tax is paid on the underlying income (rent or capital gain). Under Section 206C(1G), TCS (Tax Collected at Source) applies to certain LRS remittances, but remittances out of NRO balances under the $1M scheme with proper 15CA/CB are exempt from extra outward remittance tax if tax has been satisfied.