Last reviewed: 25 September 2026, against RBI's Master Direction on Remittance of Assets and Rule 220 of the Income-tax Rules, 2026 (old Rule 37BB).
Every year we see the same pattern: an NRI client sells inherited property or closes out an NRO fixed deposit, assumes the money can simply be wired abroad, and only discovers the USD 1 million scheme, Form 145/146 (formerly 15CA/15CB) and the tax-clearance requirement after the bank rejects the remittance request. This guide sets out the actual repatriation route for each type of fund — sale proceeds, accumulated NRO balances, current income — and where a CA certificate is genuinely mandatory versus optional.
The USD 1 million scheme — what it actually covers
Under FEMA's Master Direction on Remittance of Assets, an NRI or PIO can remit up to USD 1 million per financial year (April to March) out of balances held in an NRO account. This is a cumulative annual ceiling across all remittances from that person's NRO holdings, not a per-transaction limit. It covers:
- Sale proceeds of immovable property in India (residential or commercial, subject to the property having been acquired in accordance with FEMA)
- Sale proceeds of shares, mutual fund units and other securities held on a repatriable or non-repatriable basis, once converted to NRO
- Balances representing assets acquired by way of inheritance or legacy
- Deposit maturity proceeds, provident fund and superannuation balances (subject to the scheme applicable to the specific fund)
Agricultural land, plantation property and farmhouses need separate care: NRIs generally cannot acquire them other than by inheritance, and whether and how the sale proceeds of an inherited holding can be remitted depends on the facts, so check the position with us or your AD bank before assuming either way. The scheme is also entirely separate from the Liberalised Remittance Scheme (LRS), which applies only to resident Indians remitting funds abroad — a frequent point of confusion since both schemes reference a USD limit and both route through the same bank AD-I desks.
Current income — the unlimited, separate route
Rent from an Indian property, dividends, interest on NRO deposits, and pension received in India are treated as current income, not capital repatriation. Once the applicable Indian tax has been paid — via TDS at source under section 393(2) (old 195) for payments from 1 April 2026, or by self-assessment where TDS undercuts the actual liability — this income can be repatriated in full without counting against the USD 1 million cap. In practice, banks still ask for a CA certificate (functionally similar to Form 146) confirming the income head and tax paid, along with Form 26AS and the relevant ITR, even though the amount itself is uncapped.
Form 145 (old 15CA) — which Part applies
| Situation | Form | CA certificate needed? |
|---|---|---|
| Remittance not chargeable to tax at all (e.g., repatriation of NRE-linked or already tax-paid principal, per the exempt list in Rule 220 (old Rule 37BB)) | Form 145 Part D (old 15CA Part D) | No |
| Taxable remittance, up to Rs 5 lakh in the financial year | Form 145 Part A | No — self-certified |
| Taxable remittance above Rs 5 lakh, lower/nil-deduction order under section 395(2)(a)/395(1)(a) (old 195(2)/197) already obtained from the AO | Form 145 Part B | No fresh Form 146 — AO order substitutes |
| Taxable remittance above Rs 5 lakh, no AO order on record | Form 145 Part C | Yes — Form 146 (old 15CB) from a practising CA |
Most property-sale and NRO-balance repatriations by NRIs fall squarely into the Part C + Form 146 row, because the amounts involved are almost always above Rs 5 lakh. Rule 220 (old Rule 37BB) also carries a specified list of purpose codes — such as private travel, business travel, medical treatment abroad, and gifts or donations within prescribed limits — that are exempt from both forms regardless of amount; these rarely apply to asset-sale repatriation but matter for smaller, purpose-specific transfers. For remittances made up to 31 March 2026, the same Parts applied under Form 15CA and Form 15CB.
Worked example — repatriating property sale proceeds
An NRI sells an inherited flat in Thane for Rs 1.6 crore. The buyer, being required to deduct TDS on a payment to a non-resident under section 393(2) (old 195), deducts at the long-term capital gains rate of 12.5% plus surcharge and cess on the full sale value unless a certificate says otherwise — commonly well above the NRI's actual tax liability on the gain, since non-residents have no indexation option and exemptions may reduce the gain further. To avoid locking up funds until the following year's refund, the NRI applies in Form 128 for a lower/nil-deduction certificate under section 395(1)(a) (old 197) before the sale deed is registered, supported by a computation of actual capital gains. The AO issues a certificate specifying a lower rate; the buyer deducts under section 393(2) at that rate and files Form 144 (old 27Q), and the balance sale proceeds land in the NRI's NRO account largely intact. To move the funds abroad, the CA then issues Form 146 confirming tax has been paid on the gain, the NRI files Form 145 Part C on the e-filing portal, and the bank processes the remittance against the USD 1 million scheme (this single sale is well within the annual cap for most residential transactions).
Worked example — repatriating an accumulated NRO balance
An NRI has an NRO savings account that has built up Rs 45 lakh over several years from rent, matured fixed deposits and a small inheritance, with tax already paid on each component as it arose (TDS on rent, TDS on FD interest, no tax due on the inherited principal itself). To repatriate this in one transfer, the bank will ask for a consolidated Form 146 (old 15CB) covering the composition of the balance — the CA certifies that each component is either already tax-paid current income or a non-taxable capital receipt, and that the transfer is within the USD 1 million annual limit. Where funds have accumulated from multiple sources over multiple years, keeping a simple year-wise ledger of what went into the NRO account (and the tax paid on each item) materially speeds up the CA certification, since the CA otherwise has to reconstruct the trail from bank statements and Form 26AS.
Common mistakes we see
| Mistake | Why it causes a problem |
|---|---|
| Treating the USD 1 million cap as per transaction | Banks track it per financial year across all NRO remittances by that individual; a series of "under-the-radar" transfers still aggregates |
| Assuming LRS and the NRI USD 1 million scheme are the same facility | LRS is for residents remitting abroad; an NRI repatriating NRO funds uses the separate Master Direction on Remittance of Assets — wrong paperwork gets rejected at the bank |
| Repatriating before applying for a lower-TDS certificate on a property sale | Once the buyer has deducted TDS on the full sale value under section 393(2) (old 195), that cash is locked until an ITR-based refund; a section 395(1)(a) (old 197) application before registration avoids this |
| Assuming Form 146 (old 15CB) is a one-time document for the account | A fresh Form 145/146 is normally required for each remittance instance above the Part A threshold, not a standing clearance |
| Not retaining source-of-funds proof | Sale deeds, succession certificates and investment redemption statements are asked for years later if the remittance is queried — keep certified copies, not just the CA certificate |
Repatriation checklist
Frequently asked questions
What is the USD 1 million scheme for NRIs?
It is the RBI facility (FEMA, Master Direction on Remittance of Assets) that lets an NRI or PIO remit up to USD 1 million per financial year (April-March) out of balances held in an NRO account — including sale proceeds of immovable property, shares, mutual funds, inherited assets and other current assets held in India, once applicable Indian income tax has been paid. It is separate from and not linked to the Liberalised Remittance Scheme, which applies only to resident individuals.
Is the USD 1 million limit per transaction or per financial year?
Per financial year, cumulative across all remittances from that NRO account (or accounts) by that individual. A common misreading is treating it as a per-transaction cap — it is not. If the amount to be repatriated in a year exceeds USD 1 million, the excess needs specific RBI approval, which is rare in practice and usually not pursued for routine property-sale or inheritance cases.
Do I need Form 15CA and 15CB for every repatriation?
Not always. For remittances from 1 April 2026, Form 15CA is replaced by Form 145 and Form 15CB by Form 146; the old forms apply only to remittances made up to 31 March 2026. If the remittance is not chargeable to tax at all, only Part D of Form 145 applies (no CA certificate). If it is a taxable remittance up to Rs 5 lakh in the financial year, Part A suffices (self-certified, no CA certificate). Above Rs 5 lakh and taxable, you need Form 145 Part C along with a CA-issued Form 146, unless a lower/nil-deduction certificate from the Assessing Officer under section 395(1)(a) (old 197) already covers it (then Part B applies). Also check the specified list in Rule 220 of the Income-tax Rules, 2026 (old Rule 37BB) — certain remittances such as private travel, medical treatment or gifts within prescribed limits are exempt from these forms entirely.
Can I repatriate rent, dividend or pension income without the USD 1 million cap?
Yes. Current income — rent from Indian property, dividends, interest, pension — can be repatriated freely through the current-income route under FEMA once the applicable Indian tax (TDS under section 393(2) (old 195) for payments from 1 April 2026, or self-assessment) has been paid, and it does not count against the USD 1 million NRO-balance limit. Banks typically ask for a CA certificate confirming the nature of income and tax payment even for this route, so keep Form 26AS, ITR copies and tax challans on file.
What if TDS was deducted at 12.5% plus surcharge and cess on my whole sale price but my actual tax liability is lower?
For property transferred on or after 23 July 2024, an NRI's long-term capital gain is taxed at 12.5% without indexation, plus surcharge and cess (about 14.95% at the highest surcharge band); non-residents do not have the 20%-with-indexation option. Because the buyer deducts on the full sale value, TDS often exceeds the tax on the actual gain. Two options: apply for a lower/nil-deduction certificate under section 395(1)(a) (old 197), in Form 128 (old Form 13), before the sale closes (buyer then deducts at the certified rate), or let the buyer deduct under section 393(2) (old 195) and claim the excess as a refund by filing your ITR after the year ends. The refund route ties up funds for months and the money still needs Form 145/146 when eventually repatriated, so most NRIs selling higher-value property plan the certificate application in advance rather than relying on a refund.
What documents does the bank ask for before allowing repatriation?
Typically: Form 145 (old 15CA, self-generated on the income-tax e-filing portal) and Form 146 (old 15CB, the CA certificate, uploaded by the CA using their digital signature and UDIN), the underlying source-of-funds proof (sale deed, allotment/redemption statement, gift deed or succession certificate as applicable), PAN and NRI KYC on the account, a declaration on the purpose of remittance under FEMA purpose codes, and the bank's own A2 remittance application form. Banks increasingly also want the ITR acknowledgment for the relevant year matching the income reported.
Is repatriation different for an NRO account versus an NRE account?
Yes. NRE account balances (funds originally remitted from abroad or foreign earnings) are freely and fully repatriable at any time without the USD 1 million cap or, generally, without a fresh Form 145/146 for every transfer, because the funds are already foreign-sourced and tax-paid by definition. NRO account balances (Indian-sourced income and asset-sale proceeds) fall under the USD 1 million per-year scheme with Form 145/146 and tax-payment evidence, because that money has not left India's tax net before.
We prepare Form 145/146 (old 15CA/15CB), apply for lower/nil-TDS certificates under section 395(1)(a) (old 197) ahead of property sales, and handle the bank documentation end-to-end for NRI clients.
Income Tax Filing Lower TDS Certificate (Sec 395, old 197) CA for NRIsRelated reading: NRI Property Sale — TDS 195 and Lower TDS Certificate, NRI Selling Property in India: Complete Checklist, Form 41 (old Form 10F): DTAA and TRC Rules from FY 2026-27, DTAA Relief for NRIs: TRC and Form 10F, NRI Tax Refund to a Foreign Account, NRO vs NRE vs FCNR: Tax on NRI Bank Interest, or start at the NRI Tax Hub.
This article is for general guidance on FEMA and income-tax provisions as understood as of 25 September 2026 and does not constitute individual tax or legal advice. RBI purpose codes, lower-deduction certificate processing timelines and the Rule 220 (old Rule 37BB) specified list should be confirmed for your specific transaction before remittance; figures and thresholds are subject to change by RBI/CBDT notification.