Repatriation From NRO Account: The USD 1 Million Limit and How to Use It
TL;DR
- The Reserve Bank of India allows NRIs to repatriate up to USD 1 million per financial year from their NRO account, after meeting tax compliance.
- The cap applies to the aggregate of all current-income receipts, sale proceeds of inherited assets, and balances built up from prior years.
- Form 15CA (self-declaration) and Form 15CB (Chartered Accountant certificate) are mandatory for most NRO repatriations under Rule 37BB.
- Current income like rent, dividend, and interest within the same financial year does not count against the USD 1 million cap, and can be repatriated without 15CB.
- Repatriated funds typically credit to your NRE or overseas bank account within 2-5 working days once the bank receives complete documentation.
What this means in plain terms
Once money sits in an NRO account, India treats it as a domestic Indian asset, so moving it back out requires a permission framework. RBI has built a structured carve-out: USD 1 million per financial year per individual, regardless of whether the source is rent collected, property sold, or fixed deposit matured. This is per person, so a husband and wife with separate NRO accounts can move USD 2 million between them.
The process is paperwork-heavy because the Income Tax Department wants assurance that taxes were paid before any money leaves the country. That is what Forms 15CA and 15CB do: 15CB is your CA's stamp saying tax was correctly deducted and paid, 15CA is your declaration uploaded on the income tax portal.
What counts against the USD 1 million limit
Sale proceeds of immovable property
If you sell a flat in Mumbai and the buyer credits Rs. 4.5 crore to your NRO after deducting TDS under Section 195, that amount is part of your USD 1 million bucket for the year. Inherited property sale proceeds also fall under this limit but with proof of inheritance.
Balances from prior years
Unspent rent, residual interest, and accumulated FD principal from earlier years all count if they sit in NRO and you wish to send them abroad.
Sale proceeds of investments
Mutual fund redemption proceeds, demat share sale proceeds, and small savings instrument maturities that hit your NRO account are part of the bucket.
What does NOT count against the limit
Current income of the same year
Current income such as rent earned during the financial year, dividend received in the same year, and interest accruing in the same year can be repatriated freely without affecting the USD 1 million ceiling. RBI separates current income from accumulated balances.
NRE balances
Money in NRE accounts is fully repatriable without any cap or paperwork beyond standard FEMA reporting, because the funds originated abroad.
FCNR (B) balances
FCNR deposits and their interest are fully repatriable without any cap.
The 15CA / 15CB process step by step
When you need 15CB
Form 15CB from a Chartered Accountant is required when the remittance is taxable and exceeds Rs. 5 lakh in a financial year. The CA verifies the tax provisions applicable, examines TDS payments, and certifies the correct figure can be remitted.
When 15CA Part D is enough
If the remittance is not taxable, or falls under the specified list of 33 nature of payment codes for which 15CB is not required, you only file 15CA Part D as a self-declaration.
Bank's role
The bank cannot remit funds abroad without the relevant 15CA acknowledgement and, where needed, 15CB. The bank also files an R-Return with RBI for FEMA reporting once the remittance is executed.
A real example
Consider Aditya, 47, a US citizen and Indian-origin engineer who sold his inherited Chennai house for Rs. 2.1 crore in October 2025, and now wants to move the entire sum to his US account.
- The buyer deducted Long-Term Capital Gains TDS at 12.5 percent plus cess (effectively about 13 percent) on the gain portion under Section 195.
- Aditya engages a CA to compute final long-term capital gains, considering indexation till the FY 2025-26 threshold and any Section 54 reinvestment exemption.
- The CA prepares Form 15CB certifying that all taxes have been paid, and Aditya files Form 15CA Part C on the income tax portal.
- He instructs his bank to repatriate Rs. 2.1 crore, equivalent to roughly USD 2.5 lakh at the prevailing rate of Rs. 84.
- Because the amount is within the USD 1 million cap and full documentation is in place, the bank processes the wire transfer to his US account within four working days.
What to do this week
- List every credit into your NRO account this financial year and classify it as current income or accumulated balance.
- Confirm whether your repatriation plan stays within USD 1 million for FY 2025-26, and if not, plan a split across years.
- Engage a CA who handles NRI work and request a 15CB cost estimate before the transaction, not after.
- Keep a clean folder with sale deeds, TDS challans, ITR copies, and bank statements for the past three years; banks may ask.
- Run the 6-step assessment at https://myfinancial.in to see your old-vs-new regime delta, unused deductions, and insurance gap in under 10 minutes.
FAQ
Does the USD 1 million reset on 1 April every year?
Yes. The cap is per financial year (1 April to 31 March). Any unused portion does not carry forward, and a new USD 1 million becomes available from the next year.
Can I repatriate above USD 1 million in a single year?
Generally no, except in special circumstances such as medical emergency abroad, education expenses, or under specific RBI permissions. Most banks will not process beyond the cap without explicit RBI approval.
Is the cap per person or per family?
Per person, per PAN. Each individual NRI gets their own USD 1 million bucket per year. A married NRI couple can therefore move USD 2 million in a year using their individual NRO accounts.
Do I need 15CB for repatriating rental income?
If your rental income exceeds Rs. 5 lakh in a year and is taxable, yes. For amounts below Rs. 5 lakh, only 15CA Part A is needed.
What if I am repatriating current year's interest from my NRO FD?
Current income such as interest of the same financial year can be repatriated without it counting against the cap, but you still need to file 15CA Part D or relevant parts as applicable.
Can my Indian power-of-attorney holder execute the repatriation?
A POA holder can sign documents and process the transfer at the bank, but cannot bypass the 15CA/15CB requirement. The remittance still goes to your overseas account or NRE account, not to the POA holder's account.
How long does the bank take to process repatriation?
Typically 2-5 working days once complete documentation, 15CA acknowledgement, 15CB, KYC, and remittance instruction are received. SWIFT credit to overseas banks may add another 1-2 days.
Sources
- RBI Master Direction on Remittance of Assets: https://www.rbi.org.in
- Rule 37BB of Income Tax Rules (Form 15CA/15CB): https://incometax.gov.in
- FEMA Notification 13(R) on Remittance of Assets: https://www.rbi.org.in
- Section 195 TDS provisions: https://incometax.gov.in
This is general information, not personalised advice. For your situation, consult a Certified Financial Planner.