FEMA Repatriation
Advisory India

FEMA (Foreign Exchange Management Act 1999) repatriation refers to the legal process of transferring funds earned or held in India to a foreign country by NRIs, PIOs, OCIs, or foreign nationals. NRIs can repatriate: (1) Funds from NRO accounts — up to USD 1 million per financial year from all sources combined, subject to tax compliance; (2) Sale proceeds of immovable property (residential, commercial); (3) Proceeds from sale of shares, mutual funds, or other Indian investments; (4) Pension, provident fund, and gratuity proceeds; (5) Maturity proceeds of life insurance policies; (6) Income from rent, dividends, interest, and royalties accumulated in NRO. All repatriations above ₹5 lakhs require CA certification via Form 15CB and submission of Form 15CA before the transfer. Sirus Infotech handles the complete FEMA repatriation process — from initial tax assessment to SWIFT transfer confirmation.

Yes, with specific FEMA conditions. For NRI-inherited property (inherited from a resident Indian): proceeds are repatriable up to USD 1 million per financial year from all NRO sources combined. There is no mandatory 10-year holding period for inherited property — unlike purchased property, the inheritance removes this condition. Important restriction: proceeds from inherited agricultural land, farmhouse, or plantation property CANNOT be repatriated under general FEMA rules — these require RBI special approval, which is time-consuming and not always granted. The process requires: capital gains tax computation (LTCG at 20% with indexation if property held by original owner for 24+ months), TDS deduction by buyer if property value exceeds ₹50 lakhs (TDS at 1% for residents, 22.88% for NRIs), Form 15CB from CA, Form 15CA on IT portal, and AD Bank submission. Sirus Infotech has handled 150+ inherited property repatriation cases across the US, UK, UAE, Canada, and Australia.

The NRO to NRE / foreign account repatriation process under FEMA: Step 1 — Determine the nature and source of NRO funds (salary, rental income, sale proceeds, dividends, interest) — different income types have different tax treatments. Step 2 — Compute applicable income tax on the source of funds. Step 3 — Obtain Form 15CB from a Chartered Accountant certifying that applicable taxes have been deducted or paid and the remittance is FEMA-compliant. Step 4 — File Form 15CA on the Income Tax e-filing portal — Part C is filed for taxable remittances above ₹5 lakhs (most common), Part A for below ₹5 lakhs. Step 5 — Submit Form 15CA, Form 15CB, RBI Form A2/A3, supporting income documents, and bank's repatriation request form to your AD Bank. Step 6 — Bank processes the SWIFT wire transfer. Total timeline: typically 7–12 working days after all documents are ready. Sirus Infotech manages every step and directly coordinates with your AD bank's compliance team.

Form 15CA is a declaration filed by the remitter (person sending money abroad) on the Income Tax portal confirming that applicable taxes have been deducted/paid on the payment. Form 15CB is a Chartered Accountant's certificate (issued under Section 195(6) of the Income Tax Act) that: (1) verifies the nature of the payment and applicable tax provisions; (2) confirms that applicable tax has been deducted or is not applicable; (3) certifies FEMA compliance. Form 15CB is mandatory for any foreign remittance above Rs. 5 lakhs in a financial year that is taxable in India. Form 15CA parts: Part A — taxable remittances below Rs. 5 lakhs; Part B — remittances where tax is determined by an Income Tax officer's certificate; Part C — taxable remittances above Rs. 5 lakhs (most repatriation cases); Part D — non-taxable remittances under Schedule III (covers specific exempt items). Banks will NOT process the transfer without Form 15CA (Part C) submission. Sirus Infotech issues Form 15CB certifications with 1–2 working day turnaround and files Form 15CA on the portal same day.

The RBI permits NRIs to repatriate up to USD 1 million (approximately ₹8.3 crore at current rates) per financial year (April 1 to March 31) from all NRO account sources combined — including sale of assets, rental income, dividends, and other income. This is an aggregate limit — all repatriations from NRO in a year count toward this ceiling. To exceed USD 1 million in a financial year, an NRI must obtain RBI Special Approval by filing an application to the Reserve Bank of India's Foreign Exchange Department (Mumbai). The application requires: detailed legal documentation of source of funds, income tax clearance certificate, CA certificate, FEMA compliance history of the applicant, and a formal explanation of why the excess repatriation is justified. RBI approval for excess repatriation typically takes 30–90 days. Sirus Infotech has successfully obtained RBI approvals for NRIs with repatriation requirements ranging from USD 1.5 million to USD 8 million in a single year — primarily from sale of multiple inherited properties or large-scale asset liquidation.

Yes — dividend repatriation and capital repatriation by foreign companies from Indian entities is permitted under FEMA's FDI regulations, but with specific compliance requirements: For dividends: Repatriation is permitted after payment of applicable withholding tax (typically 10% under most DTAA, or 20% otherwise). Form 15CA/15CB is required. No prior RBI approval needed for dividend repatriation. For capital repatriation (divestment of shares): Must comply with FEMA pricing guidelines — shares must be sold at not less than fair value using internationally accepted methods (DCF or NAV), certified by a SEBI Registered Merchant Banker or CA. Form FC-TRS must be filed with RBI within 60 days of transfer. Withholding tax under DTAA must be deducted. SWIFT transfer initiated through AD Bank with complete FEMA documentation. For Compulsorily Convertible Instruments (CCDs, CCPs) converting to equity and then being divested, the timing of FEMA compliance is critical — premature or delayed conversion can violate FEMA pricing and reporting requirements. Sirus Infotech provides complete FEMA exit advisory for PE funds, venture capital funds, foreign corporates, and joint venture partners — from initial structuring to final repatriation.