Question 1

How much can an NRI repatriate from India each year?

Accepted Answer

NRIs can repatriate up to USD 1 million per financial year from their NRO account for permissible purposes — sale of property, maturity of investments, rental income, dividends, and pension. This limit is per individual per year. For repatriation above USD 1 million, RBI permission is required. NRE account funds are fully repatriable without any limit since they are funded by foreign earnings.

Question 2

What documents does the bank require for NRO to NRE transfer?

Accepted Answer

Banks typically require: a CA certificate certifying that applicable taxes have been paid on the amount being transferred; Form 15CA and 15CB filed on the IT portal; ITR acknowledgments for the relevant years; and source of funds documentation (sale deed, rent receipts, FD maturity advice, etc.). BSP Associate prepares the complete document package for bank submission.

Question 3

Can an NRI repatriate proceeds from inherited property?

Accepted Answer

Yes. NRIs can repatriate proceeds from the sale of inherited property, subject to certain conditions — the property must have been acquired by the deceased in accordance with FEMA / FERA provisions, applicable taxes must be paid, and the repatriation must be within the USD 1 million annual limit. Additional documentation including the will or succession certificate and probate may be required.

Question 4

What happens to NRI status under FEMA when an NRI returns to India permanently?

Accepted Answer

When an NRI returns to India permanently, their FEMA status changes from Non-Resident to Resident. NRE and FCNR accounts must be re-designated as resident accounts or RFC (Resident Foreign Currency) accounts. NRO accounts can be continued as regular resident accounts. The returning NRI has a specified period to re-designate accounts. BSP Associate advises returning NRIs on the complete FEMA compliance checklist.

Question 5

Is TDS applicable on NRO interest credited by the bank?

Accepted Answer

Yes. Banks deduct TDS at 30% (plus surcharge and cess) on interest credited to NRO accounts before crediting the net amount. NRIs from DTAA countries can submit Form 15G/15H or a DTAA declaration to the bank to avail the lower treaty rate. However, to avail the lower rate, a Tax Residency Certificate and Form 10F must be submitted to the bank before the interest is credited.

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