NRO Account Repatriation – How to Remit NRO Funds Abroad
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A Non-Resident Ordinary (NRO) account is commonly used by NRIs to receive income and other eligible amounts arising in India, such as rent, interest, pension, dividends and sale proceeds of assets.
Funds lying in an NRO account are not freely repatriable in the same manner as balances held in an NRE account. However, the Reserve Bank of India permits eligible NRIs/PIOs to remit specified funds abroad, subject to applicable limits, payment of Indian taxes and satisfaction of the Authorised Dealer bank. RBI currently permits eligible NRO balances to be repatriated up to USD 1 million per financial year, subject to the prescribed conditions.
From 1 April 2026, the earlier Form 15CA and 15CB have been replaced by Form 145 and Form 146, respectively, under the Income-tax Act, 2025
How Much Money Can Be Repatriated from an NRO Account?
1. Current income
Current income such as rent, dividend, pension and interest may generally be remitted abroad from an NRO account, subject to payment of applicable Indian taxes and the Authorised Dealer bank being satisfied with the supporting documents. RBI’s NRO-account framework specifically permits remittance of current income abroad.
2. Other eligible NRO balances and assets
Apart from current income, an NRI/PIO may generally repatriate up to:
USD 1 million per financial year (April–March)
from eligible NRO balances and eligible sale proceeds/assets, subject to the applicable FEMA conditions, supporting documentation and payment of Indian taxes.
The USD 1 million facility can therefore be relevant to amounts such as eligible accumulated NRO balances and qualifying sale proceeds of assets in India.
Can Funds Be Transferred from NRO Account to NRE Account?
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 tax and FEMA conditions.
Accordingly, an NRI may use either:
NRO → Overseas Bank Account
or, where eligible,
NRO → NRE Account
subject to the applicable documentation and Authorised Dealer bank requirements.
Do not retain the old article’s implication that every NRO transfer necessarily requires the same tax forms merely because the money is leaving the NRO account.
Tax Compliance Before Repatriating NRO Funds
Before processing NRO repatriation, the source and tax character of the funds should be identified.
For example, the NRO account may contain:
- interest income;
- rental income;
- pension;
- dividends;
- sale proceeds of property;
- sale proceeds of shares or mutual funds;
- maturity proceeds of deposits;
- inheritance or gift proceeds; or
- accumulated amounts that have already suffered tax in India.
The tax position can differ significantly for each category.
Therefore, the taxpayer should determine:
- whether the underlying amount is taxable in India;
- whether applicable Indian tax has already been paid or deducted;
- whether any Double Taxation Avoidance Agreement (DTAA) provisions are relevant;
- whether Form 145 is required; and
- whether CA certification in Form 146 is required.
This is important because Form 146 is not automatically required for every NRO repatriation.
Are Form 145 and Form 146 Required for NRO Repatriation?
From 1 April 2026, Form 145 replaces the earlier Form 15CA and Form 146 replaces Form 15CB.
Whether Form 145 and/or Form 146 is required depends upon the nature, taxability and amount of the underlying remittance, rather than merely on the fact that money is being transferred from an NRO account.
The current Form 145 framework broadly works as follows:
| Situation | Broad requirement |
|---|---|
| Taxable remittance up to ₹5 lakh | Form 145 – Part A |
| Taxable remittance above ₹5 lakh + AO certificate | Form 145 – Part B |
| Taxable remittance above ₹5 lakh + CA certificate | Form 146 first, then Form 145 – Part C |
| Non-taxable remittance | Form 145 – Part D, unless covered by a prescribed exclusion |
Where Part C applies, the Chartered Accountant first files Form 146, after which its acknowledgement is used for filing Part C of Form 145.
Procedure for Repatriation of Funds from an NRO Account
The practical process generally involves the following steps.
Step 1 – Identify the Source of NRO Funds
Determine whether the funds represent rent, interest, sale proceeds, investments, inheritance, pension, accumulated savings or another source.
Step 2 – Determine Taxability in India
Calculate the Indian tax liability, if any, on the underlying income or transaction and ensure that applicable taxes have been paid or appropriately deducted.
Step 3 – Determine Form 145/146 Requirement
Examine whether Form 145 is required and whether the circumstances require Form 146 from a Chartered Accountant.
For current remittances, Forms 145 and 146 must be used instead of Forms 15CA and 15CB.
Step 4 – Prepare Supporting Documents
Prepare the supporting documents establishing:
- identity and residential status;
- ownership of the NRO account;
- source of funds;
- tax payment/TDS;
- acquisition and sale of the relevant asset, where applicable; and
- other documents requested by the Authorised Dealer bank.
RBI requires the Authorised Dealer bank to be satisfied regarding the eligibility and supporting documentation for remittance under the USD 1 million facility.
Step 5 – File Form 146, Where Applicable
Where a taxable remittance exceeding the prescribed threshold requires CA certification and the case is not covered through the relevant Assessing Officer certificate route, the Chartered Accountant files Form 146.
Step 6 – File Form 145
The appropriate part of Form 145 is then filed through the Income Tax e-Filing portal. Form 145 can currently be filed online or using the prescribed offline utility.
Step 7 – Submit the Remittance Request to the Bank
Provide the Authorised Dealer bank with the required remittance application, tax documents, Form 145/146 where applicable, and supporting evidence of the source of funds.
Step 8 – Bank Processes the Repatriation
After completing its FEMA, tax, KYC and internal compliance checks, the bank may process the eligible remittance to the overseas account or eligible transfer to the NRE account.
Documents Commonly Required for NRO Repatriation
The exact document list may vary depending on the source of funds and the bank, but commonly relevant documents include:
- PAN;
- passport and overseas address proof;
- NRO bank statement;
- evidence of source of funds;
- tax computation and proof of tax payment/TDS, where applicable;
- Form 145;
- Form 146, where applicable;
- property sale deed, where funds arise from sale of property;
- inheritance documents, where applicable;
- investment redemption/sale statements;
- fixed-deposit maturity documents; and
- the bank’s remittance/application declaration.
RBI specifically requires documentary support and payment of applicable Indian taxes for use of the applicable remittance facility.
NRE Account vs NRO Account – Repatriation Difference
| Particulars | NRE Account | NRO Account |
|---|---|---|
| Repatriability | Generally freely repatriable | Restricted, subject to applicable FEMA rules |
| Current income | Repatriable | Can be remitted subject to applicable tax/documentation |
| Other eligible balances | Generally repatriable | Generally up to USD 1 million per FY under applicable facility |
| NRO → NRE transfer | Not applicable | Permitted within applicable USD 1 million facility |
RBI’s current guidance distinguishes NRE balances as repatriable while NRO balances are subject to the specific current-income and USD 1 million facilities.
Is USD 1 Million the Limit for Every NRO Remittance?
Not exactly.
The USD 1 million facility principally applies to eligible NRO balances and other specified eligible assets. RBI separately permits remittance of current income, such as rent, dividend, pension and interest, subject to applicable conditions.
Therefore, the source of funds should first be identified before determining how the USD 1 million ceiling applies.
Can More Than USD 1 Million Be Repatriated?
Cases involving amounts beyond the standard permitted facility may require a different FEMA analysis and, where the automatic permission is unavailable, an application/approval route may need to be considered.
Accordingly, transactions exceeding the prescribed limit should be reviewed separately before remittance rather than splitting transactions merely to circumvent the FEMA limit.
Form 145 and Form 146 Assistance for NRO Repatriation
For remittances made on or after 1 April 2026, Forms 145 and 146 are the applicable reporting and CA-certification forms under the new Income-tax framework.
For assistance with determining taxability, Form 145 applicability, CA certification and filing of Form 146, refer to our Form 145 and Form 146 Filing and CA Certification Services in India.
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Prepared By: EzyBiz India Consulting LLP – Chartered Accountants & Tax Advisors
Last Updated: August 2026
Disclaimer: This article is intended for general informational purposes only. NRO account repatriation requirements depend upon the source of funds, taxability, FEMA/RBI regulations, applicable banking requirements and the facts of each case. Professional advice should be obtained before processing a remittance.
