Introduction

Any Indian citizen living overseas for business, employment, or any other purpose is known as a Non-Resident Indian (NRI). If you are an NRI, you may need to move your funds from your country of residence to India. This is where repatriation steps into the picture. Whether it is to support your family, invest in property, or for any other reason, understanding repatriation is needed.

In this article, you will learn what NRI repatriation means, the different types of repatriable accounts, and the necessary documents.

Your NRI Demat Account is Just a Step Away

Understanding NRI Repatriation

Repatriation of funds essentially means sending money across countries and converting it into foreign currencies. For instance, if you are an NRI, then funds earned by you in India can be transferred from your bank in India to any other bank in the country of your residence. Similarly, your funds from a foreign country’s bank account can also be transferred to a bank in India. All this is possible through NRI repatriation.

Types of Repatriable Accounts for NRIs

Non-Resident Ordinary Account

A Non-Resident Ordinary (NRO) account is ideal for NRIs with Indian earnings, such as dividends, pensions, rental income, etc. According to the Reserve Bank of India Regulations (RBI), as an NRI, you can repatriate up to US$1 million from your NRO account in a financial year. This limit includes the repatriation of the principal amount along with accrued interest after taxes. Interest earned on this account is taxable in India.

Non-Resident External Account

A Non-Resident External (NRE) account is ideal if you are an NRI who wishes to maintain foreign income in India in Indian Rupees (INR). This feature offers you the flexibility and freedom needed to move funds from India to any other country and vice versa. Unlike the NRO account, the principal and interest accrued aren’t subject to any upper limits. Another advantage is that the interest earned on this account is exempt from taxes in India.

Foreign Currency Non-Resident Account

Unlike the NRO and NRE accounts, where funds must be held in INR, a Foreign Currency Non-Resident (FCNR) account allows you to hold your funds in foreign currency itself. This account offers certain provisions that protect you against exchange rate risks by allowing deposits in foreign currencies such as GBP, USD, etc. Just like the NRO account, funds parked in an FCNR account don’t have ceiling limits or tax implications on interest accrued in India.

Required Documents for Repatriation

In India, the Foreign Exchange Management Act (FEMA) and the RBI govern the legal framework regarding repatriation funds for NRIs. The documents needed vary depending on whether it is an NRE, NRO, or FCNR account.

Documents needed for repatriation through an NRO account:

• Photocopies of a valid passport

• Photocopies of a valid visa or residence permit

• Photocopies of a valid PAN Card for tax reporting

• Repatriation Request Form provided by the concerned bank for overseas transfers

• Bank statements of an NRO account to establish the origin of funds

• Form 15CB from a registered Chartered Accountant confirming tax compliance

• Form 15CA declaring the remittance for income tax purposes

Documents needed for repatriation through an NRE or FCNR account:

• Photocopies of a valid passport

• Photocopies of a valid residence permit or visa

• Repatriation Request Form provided by the concerned bank for overseas transfers

• Bank statements of an NRE or FCNR account to establish the origin of funds

• Photocopies of a valid PAN card for tax compliance

• Funds repatriated from an NRE or FCNR account don’t require Forms 15CB and CA since they aren’t taxable in India.

Conclusion

NRI repatriation requires compliance with the legal framework created by the RBI and FEMA. Being aware of this process, the types of accounts to be used, and the documents needed helps avoid delays and complications.

NRI repatriation is more than a fund transfer across borders; it is needed for financial management. When in doubt, it’s always better to contact your bank or a financial consultant for professional guidance.

Dive Deeper - Resident to NRI Demat Account Conversion | NRI Taxation | NRE, NRO & NRI Trading Accounts | NRI Investing Guide | NRI Demat Account vs Residential Demat Account | NRI Income Tax | NRI Multiple Accounts | Mutual Fund Taxation for NRIs