Introduction

If you're an NRI (Non-Resident Indian), one of the most important things you'll need to know is how to repatriate funds from your Indian accounts to your overseas account. Repatriation refers to transferring money from your NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts in India to your account abroad. The process may sound complicated, but once you understand the steps involved, it becomes much easier to navigate.

Repatriating Funds from an NRE Account

Let’s start with the NRE account, which is primarily used to park your foreign income in India. The best part about NRE accounts is that they allow you to repatriate your funds to your overseas account without any limits. So, how do you go about it?

1. The Process

To repatriate funds from your NRE account, you can visit your bank or use online platforms like Fed-e-Remit, SBM Remit, Fx-Remit, and RemitNow. Third-party services like Wise, Western Union, and PayPal are also options. Submit the Repatriation Request Form with proof of foreign-sourced funds, and the bank will transfer the amount to your overseas account.

2. No Limits on Repatriation

One of the advantages of an NRE account is that there are no restrictions on how much you can transfer. Whether it’s a small amount or a large sum, you can repatriate the full balance in your NRE account.

3. Taxation

Funds in your NRE account are exempt from Indian taxes, including interest income. So, when you repatriate money, you won’t have to worry about paying taxes in India.

Repatriating Funds from an NRO Account

Now, let’s look at the NRO account, which is where you manage income earned in India, such as rent, dividends, or business earnings. Unlike the NRE account, NRO accounts have some restrictions on repatriation.

1. The Process

Repatriating funds from an NRO account involves submitting a Repatriation Request Form to your bank. The process is similar to the NRE account, but with NRO accounts, you'll need to provide documents to prove the source of your income. This could include bank statements, tax returns, or TDS certificates.

2. Repatriation Limits

There’s a limit to how much you can repatriate from your NRO account. You can send a maximum of $1 million (approximately ₹8.5 crore) per financial year, including the principal amount and any income earned. For most practical purposes, this limit is more than sufficient for NRIs, ensuring ease of transactions. If you need to transfer more than this, you can manage it through multiple transactions over different financial years.

TDS and Tax Refunds

When you repatriate funds from your NRO account, understanding the TDS implications is essential. TDS is deducted by the bank when your income is credited to your NRO account, based on the applicable tax rates. However, this doesn’t mean you can’t get some of that money back.

1. Tax Refunds

If the TDS deducted exceeds your actual tax liability, you can claim a tax refund. To do this, you’ll need to file your income tax return in India. Once your return is processed, any excess TDS will be refunded to your Indian account.

2. Documents for Refund

Ensure you keep a TDS certificate (Form 16A) from the bank, which shows the amount deducted. This will be needed when you file your income tax return and claim your refund.

15 CA/CB Forms: What Are They?

If you’re planning to repatriate funds from your NRO account that exceed ₹5 lakh (around $6,000), you will need to submit Form 15CA and Form 15CB.

1. Form 15CA

This is a self-declaration form you submit to your bank, confirming that the funds being repatriated are in compliance with the Indian tax laws. You’ll need to provide details about the transaction, including the source of the funds. Form 15CA is available on the Indian Income Tax website.

2. Form 15CB

This form is a certification from a Chartered Accountant (CA) that the tax liabilities on the funds have been settled as per Indian tax regulations. It’s mandatory when repatriating amounts over ₹5 lakh.

These forms are important to ensure that the repatriation process is tax-compliant. You don’t have to worry about these forms if your repatriation is below ₹5 lakh.

Conclusion

Repatriating funds from your Indian accounts to your overseas account doesn’t have to be difficult. Whether you have an NRE account or an NRO account, the process is relatively straightforward once you understand the steps and requirements.