Mukul Khare asked on 24/03/2020

What is the limit to repatriate funds from NRO?

503 views
Avatar
SBNRI Team
answered on 24/03/2020

You can repatriate funds from NRO account only up to a maximum limit of USD 1 million per financial year as allowed by Reserve Bank of India (RBI). The funds are not freely repatriable. The interest earned on NRO Deposits is taxable in India: 30% tax + surcharge + education cess* is deducted at the source of interest earned in India.

 

repatriate funds from NRO

 

Can you transfer funds from NRO to NRE Account?

Yes. You can transfer funds from NRO to NRE account after providing proper documentation prepared by a Chartered Accountant stating that all the taxes are paid on the funds being transferred from the NRO Account.

 

What is the cess charged while we repatriate funds from NRO?

 

*(Cess: A cess is a tax on tax that you pay to the government for purposes set by the government. The cess is charged till the objective set by the government is fulfilled. Eg: Krishi Kalyan Cess, Swachh Bharat Cess etc.)

 

 

Process of Repatriation from NRO Account

Accounts

Process

Limit

NRE

1. ONLINE: 

  • Internet banking for outward remittance (sending money to your overseas account from your NRE account)

2. OFFLINE: Fill these 2 forms

(You can get them at the bank branch or download them online, sign them and send them to the bank branch in India via courier in case you are abroad.)

  • Bank Request Form: Enter foreign currency/inr amount to be repatriated, beneficiary bank details (the beneficiary name can be same or different)
  • Form A2 (Form for remittance)

No Limit

NRO

All the following documents are needed to be submitted at the Bank Branch (in India). You can either submit it when you arrive here or download it online and send the signed copies to bank branch via courier:

  • Form 15CA (The purpose of this document is to ensure that taxes are collected on the funds before they are remitted abroad as it becomes difficult to recover taxes at a later stage) (Fill the form online on NSDL and print the acknowledgement)
  • Form 15CB (Certificate of an Accountant) (The Accountant fills the form and shares it with the account holder. The account holder then sends it to the bank via courier) 
  • Form A2 (Form for remittance)
  • Request Form from the Bank (for details to debit funds from your account)

USD 1 million

FCNR

1. ONLINE:

  • Internet banking for outward remittance (sending money to your overseas account from your NRE account)

2. OFFLINE: Fill these 2 forms

(You can get them at the bank branch or download them online, sign them and send them to the bank branch in India via courier in case you are abroad.) 

  • Bank Branch Form: Enter foreign currency/inr amount to be repatriated, beneficiary bank details (the beneficiary name must be same)
  • Form A2 (Form for remittance) which also includes Corresponding bank details (A mediator bank through which the funds will be transferred to the beneficiary bank account)

No Limit

To open an NRI Bank Account effortlessly at the comfort of your home, click on the button below.

 

Ask SBNRI Tax Expert Now

 

Copy link