After selling property in India, most NRIs want to repatriate (transfer abroad) the sale proceeds. This is legal , but it is subject to specific FEMA rules, RBI limits, and tax compliance requirements. Skipping any step can lead to the bank refusing the transfer or FEMA complications. This is the complete 2026 guide.
The Basic Rule: Everything Through NRO Account
Sale proceeds from Indian property must first be credited to the NRI's NRO (Non-Resident Ordinary) account in India. This is the mandatory first step , the buyer pays into the NRO account, not directly to an overseas account. From the NRO account, after compliance with FEMA rules, the funds can be repatriated.
Step 1: Ensure TDS is Properly Deducted
Before the sale is completed, the buyer must deduct TDS at the applicable rate and deposit it with the Income Tax Department:
- Long-Term Capital Gains (property held >24 months): ~12.5% + surcharge + cess (effective ~14–23%)
- Short-Term Capital Gains: 30% + surcharge + cess
The buyer must issue Form 16A to the NRI seller confirming the TDS deduction. This is essential documentation for repatriation. See: capital gains tax for NRIs selling property in India.
If the TDS rate is higher than your actual tax liability, apply for a Lower Deduction Certificate under Section 197 before the sale to reduce excess deduction. Otherwise, you can claim a refund by filing your ITR, but this takes time.
Step 2: File Indian Income Tax Return (ITR)
The NRI must file an Income Tax Return in India for the financial year in which the property was sold. The ITR should declare the capital gains, claim any applicable exemptions (Section 54, 54EC, 54F), and pay any remaining tax liability after TDS credit. Without a filed ITR, the bank may hesitate to process repatriation.
Step 3: Obtain CA Certificate (Form 15CA / 15CB)
Form 15CA and 15CB are the most important documents for repatriation:
- Form 15CB: A certificate from a Chartered Accountant confirming that the appropriate taxes have been paid on the remittance and it is in compliance with FEMA and Income Tax Act. The CA reviews your sale documents, TDS certificate, and ITR to issue this.
- Form 15CA: An online declaration filed by the NRI on the Income Tax portal, referencing the Form 15CB. It is submitted electronically before the bank remittance.
Your bank will require both documents before processing the repatriation from the NRO account.
Step 4: Apply to Your Bank for Remittance
Submit the following to your Indian bank's authorised dealer (AD) bank for repatriation:
- Application for remittance (bank-specific form)
- Form 15CA (Part C) , printed with the acknowledgement number
- Form 15CB from a CA
- Copy of registered sale deed
- Copy of TDS certificate (Form 16A)
- Copy of ITR filed for the relevant year
- Bank account proof (NRE account abroad for credit)
The bank reviews the documents and processes the transfer. Processing time: typically 3–10 working days.
RBI Limits on Repatriation
The current RBI limit for repatriation from NRO accounts is USD 1 million per financial year (April to March). This covers all NRO account remittances including property sale proceeds.
If the sale proceeds exceed USD 1 million in a single financial year, you can spread the repatriation across two or more financial years. For extremely large transactions, an RBI application may be required , your bank's FEMA desk can advise.
Special Rule: Repatriation Limit for Residential Property
RBI guidelines specify that NRIs can repatriate proceeds from the sale of up to 2 residential properties without special RBI permission. If you are selling a third residential property, you need to apply to RBI through your AD bank for specific approval to repatriate those proceeds.
What About Inherited Property?
Proceeds from the sale of inherited property can be repatriated subject to the same USD 1 million annual limit, provided the NRI can show that the property was inherited from a resident Indian. Additional documentation confirming the inheritance (legal heir certificate, succession certificate, or probate of Will) is required. See: How to sell ancestral property in Karnataka as an NRI.
What If the Property Was Bought with NRE Funds?
If the original purchase was made from NRE account funds or inward foreign remittances, the repatriation is simpler , the sale proceeds can flow back through the NRE account without the USD 1 million annual limit applying (this is a direct reversal of a foreign exchange transaction). You still need the 15CA/15CB documentation, but the RBI limit does not apply.
Get Professional Help
The FEMA and tax compliance for NRI property repatriation involves interaction between Indian income tax law, RBI regulations, and potentially double taxation avoidance treaties. Our NRI property advisory service connects you with the CA and legal support needed to complete repatriation correctly and efficiently. Also see our NRI remote property verification service if you are also looking to verify a new purchase.