FEMA Repatriation Rules
The repatriation of sale proceeds from Indian property is governed by FEMA (Foreign Exchange Management Act). Key rules: NRIs can repatriate proceeds from up to two residential properties. The amount repatriated cannot exceed the foreign exchange brought into India for the property's purchase, or the sale proceeds, whichever is lower. Repatriation is permitted through an Authorised Dealer (AD) bank in India.
Required Documentation
To repatriate funds, you need to provide the AD bank with: the registered sale deed, proof of original purchase (showing the source of funds — NRE account, NRO account, or inward foreign remittance), a Chartered Accountant's certificate in Form 15CB certifying tax compliance, Form 15CA (an undertaking filed with the Income Tax department), TDS certificates from the buyer, and your PAN card and Indian bank account statements. The bank may also request a property valuation report and the title search documents.
Process Steps
Step 1: Complete the property sale and receive the proceeds in your NRO account. Step 2: Pay all applicable taxes and obtain TDS certificates. Step 3: Obtain the CA certificate in Form 15CB. Step 4: File Form 15CA online with the Income Tax portal. Step 5: Submit all documents to your AD bank with a repatriation request. Step 6: The bank verifies compliance and processes the remittance. The entire process typically takes 2-4 weeks after all documents are in order.
NRO Account Repatriation
If you received the sale proceeds in an NRO account, you can repatriate up to USD 1 million per financial year from the NRO account (this limit covers all NRO repatriations, not just property proceeds). Amounts exceeding this limit may require RBI approval. The AD bank will convert the rupee amount to foreign currency at the prevailing exchange rate on the date of remittance. Plan the timing of your remittance considering exchange rate movements if the amounts are significant.
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