NRI Sold Indian Property? Know Your ₹1Cr Repatriation Cap

NRIs who sell property in India must deposit sale proceeds in the right bank account — NRE or NRO — before sending money abroad. RBI rules under FEMA cap repatriation at $1 million (roughly ₹8 crore) per year, but conditions apply depending on how the property was bought.

Here's what happened: RBI rules under FEMA require NRIs to deposit Indian property sale proceeds into an NRO account, not an NRE account, since the income is India-sourced and subject to Indian tax.. NRIs can repatriate up to USD 1 million per financial year from their NRO account after settling capital gains tax and submitting Form 15CA and 15CB signed by a chartered accountant.. Properties originally purchased using foreign remittances or NRE funds may qualify for higher or different repatriation treatment under FEMA, making the purchase history critically important..

What you should do: Check your original property purchase records to confirm whether funds came from NRE remittances or rupee sources — this determines which FEMA repatriation rule applies to your sale.. Hire an FEMA-compliant chartered accountant before the sale closes to prepare Form 15CA and 15CB, calculate capital gains tax, and ensure your bank processes the outward remittance without delay.. Open or activate your NRO account well before the sale transaction so your buyer's payment is deposited into the correct account from day one — transferring funds between account types later adds delays and documentation burden..

If you sold two inherited properties in the same financial year, your total repatriation stays capped at USD 1 million combined — plan staggered sales across financial years to legally move the full amount abroad.

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