NRO Account Repatriation

NRO Account Repatriation: Rules, Limits and Process 2026

NRO account repatriation allows eligible Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) to transfer money from their Non-Resident Ordinary (NRO) accounts in India to an overseas bank account or, where permitted, to an NRE account.

NRIs commonly use NRO accounts to receive Indian rental income, dividends, interest, pensions, property-sale proceeds, investment redemptions and other legitimate amounts arising in India. However, withdrawing or transferring these funds abroad requires compliance with the Reserve Bank of India (RBI) rules, Foreign Exchange Management Act (FEMA) regulations and applicable Indian tax requirements.

Under the applicable RBI framework, eligible NRO balances and certain assets can generally be repatriated up to USD 1 million per financial year, subject to prescribed conditions. Current income, such as rent, dividend, pension and interest, is covered by a separate permitted remittance facility.

Another important development is that Forms 145 and 146 replaced Forms 15CA and 15CB for remittances made on or after 1 April 2026 under the Income-tax Act, 2025 and Income-tax Rules, 2026.

This guide explains NRO repatriation limits, eligible funds, tax compliance, documentation, the step-by-step process and practical examples. For comprehensive assistance, explore our NRI Taxation Services in India.

What Is NRO Account Repatriation?

Meaning of NRO Account Repatriation

NRO repatriation refers to the transfer of eligible money held in an Indian NRO bank account to a foreign bank account, subject to applicable regulatory and tax conditions.

Repatriation may also involve an eligible transfer from an NRO account to an NRE account, within the relevant RBI facility.

Who Can Repatriate Funds from an NRO Account?

Eligible NRIs and PIOs may use the RBI-prescribed repatriation facilities, subject to account ownership, source of funds, transaction purpose and other applicable requirements.

Different rules may apply to foreign nationals, overseas companies, beneficiaries of inherited assets and other categories of non-residents. Eligibility should therefore be checked before processing a remittance.

Why Is NRO Repatriation Restricted?

NRO accounts commonly contain Indian-source income and funds arising from Indian assets. Consequently, the RBI requires the Authorised Dealer (AD) bank to verify the remittance’s eligibility, supporting documents and applicable tax compliance.

The rules distinguish between current income, which is generally remittable subject to conditions, and other eligible balances and assets that may fall within the USD 1 million annual facility.

How Much Money Can Be Repatriated from an NRO Account?

USD 1 Million Annual Repatriation Limit

Under the applicable RBI framework, NRIs and PIOs may generally repatriate up to USD 1 million or its equivalent per financial year from eligible NRO balances and other specified eligible assets.

The financial year runs from 1 April to 31 March.

The facility is subject to prescribed FEMA conditions, documentary evidence, applicable Indian taxes and verification by the Authorised Dealer bank.

Current Income May Be Remitted Separately

Current income arising in India, such as interest, rent, dividends and pensions, may generally be remitted abroad subject to applicable taxes and documentary requirements.

The USD 1 million facility for eligible capital balances should not automatically be treated as the ceiling for all current-income remittances.

Is the USD 1 Million Limit Per Account or Per Person?

The USD 1 million facility is an overall annual remittance facility for the eligible person, rather than a separate limit for each NRO account.

Where an individual maintains NRO accounts with multiple banks, remittances under the facility should be monitored on an aggregate basis.

For official guidance, see the RBI FAQs on Accounts in India by Non-Residents.

Which Funds Can Be Repatriated from an NRO Account?

Interest, Rent, Dividends and Pension

Common examples of current income that may be repatriated include:

• Interest earned on NRO deposits.
• Rental income from property situated in India.
• Dividends received from Indian companies.
• Pension received in India.
• Other eligible current income.

Applicable tax must be paid or appropriately provided for, and supporting documentation may be required.

Sale Proceeds of Property and Investments

Eligible proceeds from the sale of Indian immovable property, shares, mutual funds and certain other assets may be repatriated under the applicable FEMA facility.

However, separate rules may apply to certain assets based on their acquisition, original investment route, funding source and repatriation rights.

Inheritance, Gifts and Accumulated NRO Balances

Accumulated eligible NRO balances and specified amounts received through inheritance or gifts may also qualify for repatriation, subject to the applicable RBI conditions.

The applicant should retain documents establishing the source and ownership of the funds, such as bank statements, succession documents, gift deeds and tax records.

Current Income vs Capital Balances: Repatriation Rules

Repatriation of Current Income

Current income such as rent, dividends, pension and interest may generally be transferred abroad subject to payment of Indian taxes and the AD bank’s verification.

Example: An NRI living in the USA receives annual rental income of ₹12 lakh from an Indian property. After satisfying the applicable tax and banking requirements, the eligible rental income may generally be remitted abroad under the current-income facility.

Repatriation of Capital and Accumulated Funds

Accumulated NRO balances, eligible investment-sale proceeds and other qualifying capital amounts may fall within the USD 1 million per financial year facility.

Example: An NRI has ₹80 lakh of eligible accumulated NRO funds. Subject to FEMA eligibility, taxes and bank documentation, the amount may generally be considered for repatriation within the applicable annual limit.

Important: The taxation of the underlying transaction and permission to remit the funds are separate matters. A tax-exempt receipt is not automatically freely repatriable.

Can Money Be Transferred from an NRO Account to an NRE Account?

NRO to NRE Transfer Under RBI Rules

Yes. RBI permits eligible funds to be transferred from an NRO account to an NRE account within the overall USD 1 million per financial year facility, subject to applicable conditions.

The AD bank may require evidence of the source of funds, tax compliance and supporting declarations.

NRO to NRE Transfer vs Overseas Remittance

Subject to eligibility, the account holder may choose either of the following:

• NRO to overseas bank account: Eligible funds are converted and transferred abroad through the banking system.
• NRO to NRE account: Eligible funds are transferred to the account holder’s NRE account in India under the permitted facility.

The exact documentation may differ depending on the transaction and bank. Forms 145 and 146 should not automatically be assumed mandatory for every internal NRO-to-NRE transfer; the applicable tax-reporting provisions and bank requirements must be checked.

For a broader comparison, read our NRI Bank Accounts in India guide.

Repatriation of Property Sale Proceeds from India

Can an NRI Repatriate Sale Proceeds of Indian Property?

Yes, eligible proceeds from the sale of property in India may be repatriated subject to RBI/FEMA regulations and applicable taxes.

The permitted amount and route depend upon factors such as the type of property, mode of acquisition, original funding source and whether the investment was made on a repatriation or non-repatriation basis.

The USD 1 million facility is relevant to certain property-sale proceeds, but should not automatically be applied to every property transaction without examining the applicable acquisition and remittance rules.

Capital Gains Tax and TDS Requirements

Sale of property by an NRI may involve capital gains tax and withholding requirements under Indian income-tax law.

The tax liability should be determined with reference to the applicable tax year, nature of property, holding period, cost of acquisition, eligible exemptions and treaty provisions, where relevant.

Where legally permissible, an NRI may apply for a lower or nil deduction certificate to avoid excessive withholding.

See our detailed guide on TDS on Sale of Property by NRI.

Documents for Repatriating Property Sale Proceeds

Common documents include:

• Registered sale deed.
• Original purchase deed and acquisition details.
• Evidence of the original source of purchase funds.
• Capital gains tax computation.
• Applicable TDS certificates and tax payment proof.
• Bank statements showing receipt of proceeds.
• Form 145 and Form 146, where applicable.
• AD bank declarations and remittance application.

Additional documentation may be required depending upon the property transaction and the bank’s compliance review.

Repatriation of Inheritance, Gifts and Investment Proceeds

Repatriation of Inherited Money

Eligible inherited funds may be repatriated under the applicable RBI facility, subject to the status of the beneficiary, source of assets, supporting documents and other conditions.

Documents may include a will, probate, succession certificate, legal-heir documents, estate distribution records and bank statements.

The tax treatment of inheritance and any income or capital gains subsequently arising from inherited assets should be examined separately.

Repatriation of Gifts Received in India

Gifts received by an NRI may be subject to Indian income-tax provisions depending on the donor, relationship, nature and value of the gift.

The FEMA permissibility of receiving the gift and repatriating the amount must also be independently checked. A gift that is exempt from income tax is not necessarily unrestricted for foreign exchange purposes.

Repatriation of Shares and Mutual Fund Proceeds

The repatriability of proceeds from Indian investments depends upon the type of investment, its original investment route, applicable FEMA conditions and the source of funds.

Investments made on a repatriation basis may have different treatment from assets acquired on a non-repatriation basis.

For detailed guidance, visit NRI Shares and Mutual Funds Taxation.

Income Tax Compliance Before Repatriating NRO Funds

Is NRO Account Repatriation Taxable in India?

Repatriation is not itself necessarily a separate taxable event. However, the underlying income or transaction may be subject to Indian income tax.

For example, transferring previously accumulated, duly taxed savings does not automatically create a new income-tax liability merely because the funds are being transferred abroad.

By contrast, rental income, interest or gains from selling an asset may be taxable in India under the applicable provisions.

Tax Deduction at Source and Tax Payment

The NRI should verify whether tax has been deducted or paid on the underlying income and whether any additional tax liability remains.

Relevant records may include Form 26AS, Annual Information Statement (AIS), TDS certificates, income-tax returns, assessment orders and challans.

Excess TDS may be recoverable through an eligible income-tax refund claim. Read our NRI Income Tax Return Filing Services page for details.

DTAA Benefits and Foreign Taxation

An NRI may be liable to tax in the country of residence on Indian-source income, depending on local tax law.

An applicable Double Taxation Avoidance Agreement may provide relief from double taxation, subject to treaty eligibility, documentation and the nature of income.

Read our DTAA Benefits for NRIs guide.

Form 145 and Form 146 Requirements for NRO Repatriation

Form 145 Replaces Form 15CA from April 2026

From 1 April 2026, Form 145 replaced Form 15CA for applicable remittance reporting under the Income-tax Act, 2025.

Form 145 provides information relating to specified payments to non-residents or foreign companies. Its applicability should be examined based on the actual remittance, nature of payment, taxability and exclusions prescribed under the Income-tax Rules, 2026.

Form 146 Replaces Form 15CB

Form 146 replaces the earlier Form 15CB and is a Chartered Accountant’s certificate for applicable payments to non-residents or foreign companies.

Form 146 is not automatically mandatory merely because money is being transferred from an NRO account. Its requirement depends upon the applicable statutory reporting framework.

When Are Form 145 Parts A, B, C and D Applicable?

Situation	Broad Reporting Requirement
Taxable remittance where the remittance or aggregate during the tax year does not exceed ₹5 lakh	Form 145 – Part A
Taxable remittance above ₹5 lakh where the relevant Assessing Officer certificate is obtained	Form 145 – Part B
Taxable remittance above ₹5 lakh requiring CA certification under the applicable route	Form 146, followed by Form 145 – Part C
Non-taxable remittance covered by reporting rules	Form 145 – Part D, subject to prescribed exclusions

Important: The above is a simplified summary of the reporting framework. For an individual transferring money from their own NRO account, the actual applicability of Form 145 or Form 146 must be determined separately; the table does not establish that all own-account transfers are reportable.

For official guidance, refer to the Income Tax Department – Form 145 and Income Tax Forms and Transition FAQs.

For professional assistance, visit our Form 145 and Form 146 Filing Services in India.

Step-by-Step Procedure for NRO Account Repatriation

Step 1: Identify the Source and Eligibility of Funds

Determine whether the funds comprise current income, accumulated savings, property-sale proceeds, investment-sale proceeds, inheritance or other eligible amounts.

Identify the relevant RBI facility, annual limit and source-specific conditions.

Step 2: Calculate Taxes and Complete Required Reporting

Evaluate the taxability of the underlying income, confirm TDS and tax payments, and obtain supporting certificates or opinions where necessary.

Determine whether Form 145 and Form 146 are applicable. Where Part C of Form 145 applies, the relevant Chartered Accountant certificate in Form 146 should be obtained first.

Step 3: Submit Documents and Process the Bank Transfer

Submit the applicable outward remittance request, beneficiary details, source-of-funds documents, tax records, FEMA declaration and other documents required by the AD bank.

The bank reviews the application, verifies applicable conditions and processes the eligible remittance or transfer to an NRE account.

The exact processing method may differ by bank. Some banks provide digital NRO repatriation services, while others may require submission of prescribed documents through a branch or other authorised channel.

Documents Required for NRO Account Repatriation

Identity and Bank Documents

• PAN of the account holder.
• Passport and applicable overseas residency evidence.
• NRO account details and bank statements.
• Overseas beneficiary account and SWIFT details, where applicable.
• Bank remittance application and declarations.
• KYC and tax residency details requested by the bank.

Tax Documents and CA Certificates

• Income-tax computation and supporting schedules.
• Applicable TDS certificates and tax challans.
• Income-tax return or assessment records, where required.
• Form 145 acknowledgement, where applicable.
• Form 146 and CA certification, where required.
• Applicable treaty and tax residency documents, where relevant.

Documents Establishing the Source of Funds

• Property purchase and sale deeds.
• Rent agreements and rental statements.
• Investment redemption and sale statements.
• Fixed-deposit maturity documents.
• Inheritance and succession documents.
• Gift deeds and supporting records, where applicable.
• Evidence of original receipts, ownership and earlier tax compliance.

The above is a general checklist. The bank may request additional supporting evidence, and every listed document is not mandatory for every remittance.

Examples of NRO Account Repatriation

Example 1: NRI Repatriating Rental Income

Suppose an NRI living in the UK receives ₹15 lakh in annual rental income from a residential property in India.

The NRI intends to transfer the rental proceeds to a UK bank account.

The principal considerations are:

• Determine taxable rental income under Indian income-tax law.
• Ensure applicable taxes have been deducted or paid.
• Prepare rental agreements, bank statements and tax records.
• Determine the applicable remittance reporting requirements.
• Submit the eligible remittance request to the AD bank.

Current rental income may generally be remitted under the applicable current-income facility, rather than automatically being restricted by the USD 1 million capital-balance facility.

Example 2: NRI Repatriating Property Sale Proceeds

Suppose an NRI sells an eligible property in India and receives ₹1.5 crore in an NRO account.

Before transferring the funds to Canada, the NRI should determine the capital gains tax, applicable withholding, FEMA eligibility, relevant annual remittance facility and bank documentation.

If the transaction is eligible under the USD 1 million annual facility, the rupee amount would generally be considered within that ceiling, subject to applicable exchange rates and other eligible remittances already made during the financial year.

The amount received on sale is not necessarily the same as the taxable capital gain. Accordingly, taxation and remittance eligibility require separate calculations.

NRE Account vs NRO Account: Repatriation Differences

Repatriation and Tax Treatment Comparison

Particulars	NRE Account	NRO Account
Principal repatriation	Generally freely repatriable	Restricted, subject to FEMA provisions
Interest repatriation	Generally freely repatriable	Generally permitted subject to applicable conditions
Indian tax on interest	Exemption may apply subject to statutory conditions	Generally taxable
Other eligible capital balances	Generally repatriable	USD 1 million facility may apply
NRO to NRE transfer	Receiving account	Eligible transfer permitted under applicable facility

For authoritative guidance, refer to the RBI Non-Resident Accounts FAQs.

Which Account Is Suitable for an NRI?

NRE accounts are generally suitable for eligible overseas earnings transferred to India, while NRO accounts are commonly used for legitimate Indian income and other eligible Indian receipts.

The appropriate account depends upon FEMA residential status, the source and intended use of funds, and applicable banking regulations.

Common Mistakes and Important FEMA Precautions

Assuming Every NRO Remittance Is Limited to USD 1 Million

The USD 1 million facility generally applies to specified eligible balances and assets. Current-income remittances may be permitted separately, subject to applicable conditions.

Incorrectly classifying current income as capital balances may complicate repatriation planning.

Assuming Every Transfer Requires Form 146

Not every NRO transfer necessarily requires a Chartered Accountant certificate in Form 146.

The statutory reporting position and any separate bank certification requirement should be evaluated before advising the account holder.

Other mistakes include inadequate source-of-funds evidence, failure to pay applicable taxes, incorrect assumptions about inherited assets and attempting to avoid the annual FEMA limit by splitting transactions.

Frequently Asked Questions on NRO Repatriation

Can I Transfer Money from an NRO Account to My Overseas Account?

Yes, provided the funds and transaction satisfy the applicable RBI/FEMA rules, taxes, documentation and bank requirements.

Can I Repatriate More Than USD 1 Million from an NRO Account?

Current income may be eligible for remittance separately from the USD 1 million facility. For other amounts exceeding the standard permitted limit, a separate legal and FEMA analysis is necessary, including whether any specific permission or approval is available.

Is Form 145 Required for Every NRO-to-NRE Transfer?

No universal rule should be assumed. Whether Form 145 is required depends upon the transaction’s nature, the prescribed tax-reporting requirements and applicable exclusions. Banks may also require supporting tax documents.

How Long Does NRO Repatriation Take?

Processing depends upon the bank, completeness of documentation, source-of-funds verification, tax compliance, foreign exchange processing and any additional approvals required.

An application involving uncomplicated, properly documented funds may be processed more quickly than a remittance involving inherited assets, property-sale proceeds or unresolved tax issues.

Related NRI Taxation and Repatriation Services

Our NRI Tax and FEMA Advisory Services

EzyBiz India Consulting LLP assists NRIs with the tax and regulatory aspects of remitting eligible funds from India to overseas accounts.

Our professional assistance may include:

• Review of NRO fund sources and remittance eligibility.
• Examination of RBI/FEMA conditions and applicable remittance limits.
• Indian tax and TDS review of underlying transactions.
• Preparation and filing of Forms 145 and 146, where applicable.
• Review of required documentation and bank declarations.
• Advice on property-sale proceeds and inherited funds.
• Coordination with the AD bank for documentation queries.
• Advisory on NRO-to-NRE transfers and related NRI tax matters.

Explore Our Related Services

• NRI Taxation Services in India – Main NRI taxation and regulatory advisory service.
• Form 145 and Form 146 Filing Services – International remittance reporting and CA certification.
• NRI Bank Accounts in India – NRE, NRO, FCNR and account-related rules.
• Sale of Property by NRI – TDS, capital gains and property-sale compliance.
• NRI Shares and Mutual Funds Taxation – Investment income, tax and capital gains.
• DTAA Benefits for NRIs – International double taxation relief.
• NRI Income Tax Return Filing Services – Return preparation, TDS reconciliation and refund assistance.
• NRI Returning to India Tax Planning – Residential status, overseas assets and FEMA planning.

Need Professional Assistance With NRO Account Repatriation?

Contact our team for guidance on NRO remittance eligibility, tax compliance, Form 145/146 applicability, FEMA documentation and coordination with your bank.

CA Anil Agrawal
Founder, EzyBiz India Consulting LLP

Mobile / WhatsApp: +91 98992 17778

Email: anil@ezybizindia.in

Website: EzyBiz India Consulting LLP