Repatriation is the process of transferring money earned in India to your foreign bank account. As an NRI, once you have sold your Chennai property and paid all applicable taxes, you are entitled to repatriate the net proceeds — subject to certain FEMA (Foreign Exchange Management Act) conditions.
Understanding this process upfront saves you weeks of delays and avoids costly mistakes.
Am I Eligible to Repatriate?
Repatriation of property sale proceeds is permitted under FEMA for NRIs who acquired the property in accordance with FEMA regulations — that is, the property was either purchased as a resident (before becoming an NRI) or purchased as an NRI using funds remitted from abroad or funds held in an NRE/NRO account.
Properties acquired as gifts or through inheritance are also eligible for repatriation, subject to documentary proof.
How Much Can You Repatriate?
The annual repatriation limit under FEMA is USD 1 million (approximately ₹8–8.5 crore) per financial year per person. This includes all remittances from the NRO account — property sale proceeds, rental income, dividends, and other Indian-sourced income.
If your sale proceeds exceed USD 1 million, you can repatriate across two financial years. There is no restriction on the total amount — only the annual limit.
Step-by-Step Repatriation Process
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Step 1 — Ensure TDS Compliance The buyer must have deducted TDS under Section 195 and deposited it with the Income Tax Department. You must have Form 16A from the buyer before proceeding.
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Step 2 — Get Form 15CB from Your CA Your Chartered Accountant in India prepares Form 15CB, certifying that the remittance is tax-compliant. This requires the valuation report, sale deed, TDS certificate, and DTAA residency certificate.
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Step 3 — File Form 15CA Form 15CA is filed online on the Income Tax e-filing portal, referencing the Form 15CB certificate number.
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Step 4 — Transfer Proceeds to NRO Account The net sale proceeds (after TDS deduction) must first be credited to your NRO (Non-Resident Ordinary) account in India. They cannot be directly remitted from the buyer to your foreign account.
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Step 5 — Submit Repatriation Request to Your Bank Submit a written application to your Indian bank requesting repatriation from NRO to NRE or directly to your foreign bank account. Attach Form 15CA, Form 15CB, the sale deed, and ID documents.
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Step 6 — NRO to NRE Transfer (Optional) If you prefer to keep the funds in India for now, you can transfer from NRO to NRE within the USD 1 million annual limit. NRE accounts are freely repatriable at any time.
Timeline
Once all documents are in order, repatriation typically takes 5 to 15 working days through a major Indian bank. Delays are most often caused by missing Form 15CB, an incomplete Form 15CA, or mismatched names across documents.
