How Can NRIs Repatriate Investments From India? A Complete Guide

Most NRIs assume any money sitting in an Indian account moves abroad on request. That is true only for NRE and FCNR accounts. Your NRO account, where most India-sourced income lands, comes with an annual cap and tax paperwork attached. This guide explains what NRI repatriation means, how much you can send abroad each year, and the exact steps to repatriate mutual funds, fixed deposits and inherited money from India.

In this article, we will cover:

• What NRI repatriation means and why your account type matters
• How NRE, NRO and FCNR accounts differ for repatriation
• How much you can repatriate under the USD 1 million scheme
• How to repatriate mutual fund proceeds from India
• How to repatriate fixed deposits and inherited assets
• Documents you need, including the new Form 145 and Form 146
• The step-by-step process to move funds out of India

What Does NRI Repatriation Mean?

Repatriation means legally transferring money from your Indian accounts to your overseas bank account. The Foreign Exchange Management Act, or FEMA, governs every rupee that leaves India this way. It splits your funds into two buckets: repatriable and non-repatriable.

Repatriable funds move abroad without any RBI approval, subject to limits. Non-repatriable funds must first be converted or cleared through tax and compliance checks. Which bucket your money falls into depends entirely on the account it sits in.

How Do NRE, NRO and FCNR Accounts Affect Repatriation?

Your account type decides how easily you can send money abroad. Here is what each one means for repatriation.

• NRE (Non-Resident External) account: Holds foreign income you remit to India. Both principal and interest are fully repatriable, with no upper limit. Interest earned is also tax-free in India.
• NRO (Non-Resident Ordinary) account: Holds India-sourced income like rent, dividends, pension and interest. Repatriation is capped at USD 1 million per financial year, after taxes are paid.
• FCNR (Foreign Currency Non-Resident) account: Holds fixed deposits in foreign currency. Principal and interest are fully repatriable, similar to an NRE account.

If you plan to repatriate investment proceeds regularly, route your India-sourced income through an NRO account. Then use the USD 1 million scheme each financial year to send it abroad.

How Much Can NRIs Repatriate From India?

The Reserve Bank of India allows NRIs to remit up to USD 1 million per financial year from NRO account balances. This is known as the USD 1 million scheme, and it covers sale proceeds, rental income, deposits, and inherited assets.

The USD 1 million limit applies per person, per financial year – not per family or per transaction.

This differs from the Liberalised Remittance Scheme, or LRS, which lets resident Indians send up to USD 250,000 abroad annually. NRIs repatriating their own India-based funds use the USD 1 million scheme, not the LRS. No tax is collected at source under this scheme, but you must pay all applicable taxes on the underlying income first.

How to Repatriate Mutual Fund Proceeds From India?

Repatriating mutual fund proceeds depends entirely on how you funded the original investment.

If you invested through your NRE account, redemption proceeds credit back to your NRE account. From there, the full amount is repatriable without restriction. If you invested through your NRO account, proceeds credit to your NRO account instead, and the USD 1 million annual cap applies.

Tax is deducted at source before you receive redemption proceeds:

• Equity funds held over 12 months: 12.5% on gains above ₹1.25 lakh
• Equity funds held under 12 months: 20% tax deducted
• Debt funds: taxed at your applicable income tax slab rate

Here is how this plays out for an NRI investor with an NRO-funded mutual fund:

• You redeem units worth ₹40 lakh, held for two years, with ₹10 lakh as gains
• The fund house deducts tax on the ₹10 lakh gain before payout
• The net amount, after tax, credits to your NRO account
• You then submit tax certification and request the bank to remit this abroad
• The full net amount can be repatriated, as it sits well under the USD 1 million yearly cap

Scripbox lets NRIs invest in Scripbox-recommended direct mutual funds through non-resident account, so you know upfront which repatriation route applies. Read more about NRI mutual fund investment options in India.

How to Repatriate Fixed Deposit Proceeds From India?

Fixed deposit repatriation also follows the account it was booked under.

An NRE fixed deposit is fully repatriable, along with all interest earned, since it is tax-free in India. An NRO fixed deposit is capped under the USD 1 million scheme, and interest is taxed at 30% before repatriation. An FCNR deposit, held in foreign currency, is fully repatriable with no cap at all.

If you want your fixed deposit corpus to move abroad without restriction later, choose an NRE or FCNR deposit at the outset. 

How to Repatriate Inherited Assets From India?

You can repatriate inherited money, property sale proceeds or inherited investments up to USD 1 million per financial year. This limit applies to you individually, so each legal heir gets a separate quota. Larger inheritances can be repatriated across multiple years using this yearly allowance.

You will typically need the following documents:

• Will, probate, or legal heir or succession certificate
• Death certificate of the person who left the assets
• Title deeds, share certificates or deposit receipts for the inherited asset
• No-objection certificates from other legal heirs, if applicable
• Chartered Accountant certification confirming taxes are settled

Banks will not process this remittance until every document confirms clear legal ownership and full tax payment on the inherited asset.

What Documents Do You Need to Repatriate Funds From India?

From 1 April 2026, Form 15CA and Form 15CB have been replaced by Form 145 and Form 146 under the Income-tax Act, 2025. The compliance requirements remain largely the same, only restructured.

• Form 145 is your self-declaration of the remittance, filed on the income tax e-filing portal.
• Form 146, issued by a Chartered Accountant, certifies that tax on the remitted amount is fully paid.
• Form A2 is the foreign exchange declaration your bank needs for the transfer.

Form 146 is compulsory only when your remittance exceeds ₹5 lakh in a financial year. Below this threshold, a simpler self-declaration under Form 145 usually suffices. Keep your PAN card, recent bank statements and proof of the income source ready, since your bank will ask for these before processing any outward remittance.

What Is the Step-by-Step Process to Repatriate Funds From India?

Follow these steps once your funds are ready to move:

1. Confirm which account holds the funds: NRE, NRO or FCNR.
2. Pay any outstanding tax on the income or gains involved.
3. Get Form 146 from a Chartered Accountant, if your remittance exceeds ₹5 lakh.
4. File Form 145 on the income tax portal.
5. Submit Form A2 and supporting documents to your bank’s authorised dealer branch.
6. The bank verifies documents and processes the transfer through SWIFT.
7. You receive confirmation once funds are credited to your overseas account.

Banks typically process NRE remittances in three to five working days. NRO remittances, given the added tax checks, can take one to two weeks.

How Can Scripbox Help You Manage NRI Repatriation and Investments?

Planning your investments around repatriation rules from day one saves you paperwork later. Scripbox helps NRIs invest through the right account structure, so redemption proceeds land where you expect them to.

• Invest in Scripbox-recommended direct mutual funds through your non resident accounts
• Get guidance on structuring new investments for smoother future repatriation

Explore Scripbox’s mutual fund investment options for NRIs to start investing the right way.

Start Repatriating Your Indian Investments the Right Way

NRE and FCNR funds move abroad freely. NRO funds, including mutual fund and fixed deposit proceeds, follow the USD 1 million annual cap and need Form 145 and Form 146. Inherited assets fall under the same yearly limit, with each legal heir getting an individual quota.

Get your tax payments and documents in order before you approach your bank. If you are still investing, choose the account structure that matches your repatriation plans now. Talk to a Scripbox advisor to structure your NRI portfolio for smooth, timely repatriation.

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Frequently Asked Questions (FAQs): NRI Repatriation

Can NRIs repatriate the entire balance from an NRO account? 
No, NRO repatriation is capped at USD 1 million per financial year, after all applicable taxes are paid on the underlying income.

Is there any limit on repatriating funds from an NRE account?
No, NRE account funds, including principal and interest, are fully repatriable with no annual cap.

Do I need a Chartered Accountant certificate for every repatriation? 
Only if your remittance exceeds ₹5 lakh in a financial year. Below this, a self-declaration under Form 145 is usually enough.

Can I repatriate proceeds from selling inherited property? 
Yes, up to USD 1 million per financial year, once you clear taxes and submit ownership and legal heir documents.

What is the difference between the LRS and the USD 1 million scheme? 
LRS lets resident Indians remit up to USD 250,000 yearly. NRIs use the USD 1 million scheme to repatriate their own India-based funds instead.

How long does it take to repatriate funds from India? 
NRE remittances typically take three to five working days. NRO remittances take one to two weeks due to additional tax checks.