Repatriation

NRIs remit their profits to India from their savings abroad but would like to enjoy the flexibility of repatriating the same in case of adversity. With due consideration, the government of India has provided for repatriation of funds from the non-resident’s rupee or forex resources.

Therefore, RBI came up with guidelines for the repatriation of funds from or to India:

Income Repatriation

Every income whether it is in the nature of interests, dividends, rents, Mutual Fund distribution from any type of deposits, investments, or properties is permissible for repatriation net of income tax in India. This includes income earned from business in India by an NRI as partner, proprietor, or joint venture entity.

Immovable Property

The sale of the property is permitted for repatriation as under:

  • Exempted from RBI authorization:
    • Property owned for more than 10 years: NRIs/PIOs are allowed to repatriate the funds held in their Non-Resident Ordinary Rupee Account (NRO) up to US$ 100,000 a year where sale proceeds of immovable property held by them for the period of not less than 10 years is subject to payment of taxes.
      • The seller purchased the property as per the requirements of foreign exchange law applicable at the time of acquisition.
      • If the property is on sale after 3 years of date of purchase or the final payment of Purchase consideration whichever is later. However, the above period of 3 years is not applicable in case of such property sold by NRI/PIO on or after 19.08.2002
      • Further exemption from RBI authorization comes only up to the value of purchase consideration paid in Foreign Exchange.

RBI permission essential for NRI who had purchased immovable property in India, and  not eligible under clause I above. Sale of such immovable property can be repatriated by attaining special authorization of the RBI on the ground of adversity.

Inheritance, Legacy or Bequest

The sale proceeds or realization of assets can be permitted for repatriation only under the following grounds.

Exempted from RBI Permission:

NRIs/PIOs are allowed to remit up to US$100000 per calendar year out of the assets in India obtained by way of inheritance/legacies. This increased the overall limit (including remittances of proceeds of immovable property held for more than 10 years, remittance for education and medical purposes) to US$ 1 million.

RBI permission essential:

Besides the clause I seeking exemption from RBI authorization and for any other possessions, repatriation is allowed only after obtaining special authorization of the Reserve Bank of India on definite reasons such as adversity and subject to conditions as specified in the permission.

Other assets:

The sale-profits or realization of NRI assets is allowed for repatriation as follows:

  • Deposits with Banks or Companies,
  • P.F,
  • Matured life Insurance claims,
  • Sale-profits from shares & securities
  • Other assets or Immovable Property

Subject to conditions as specified in the permission of RBI.

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