NRI FEMA Advisory & Repatriation

What is NRI FEMA advisory and repatriation?

The Foreign Exchange Management Act (FEMA) and RBI rules govern what NRIs and OCI cardholders can hold in India, how they can invest, what property they can buy, and how money can be taken out. Repatriation — moving money from India to abroad — has limits and documentation requirements.

Getting FEMA right matters because violations attract penalties, and banks won't process remittances without the correct paperwork, including tax forms.

The key terms

What NRIs need to know:

NRE account

Holds foreign earnings in rupees; fully repatriable, with tax-free interest.

NRO account

Holds Indian income like rent and sale proceeds; repatriation is limited.

FCNR deposit

A fixed deposit in foreign currency, fully repatriable.

USD 1 million limit

NRIs can remit up to USD 1 million per financial year from NRO balances, including sale proceeds of assets.

Form 15CA/15CB

The declaration and, for larger amounts, a CA's certificate needed for many remittances.

Property rules

NRIs and OCIs can buy residential and commercial property, but not agricultural land, plantations or farmhouses, except by inheritance.

Resident account conversion

On becoming NRI, resident savings accounts must be redesignated as NRO.

Why it matters

FEMA mistakes are common and costly:

Account status

Keeping resident accounts after becoming NRI is a violation.

Repatriation limits

Remittances beyond limits need RBI approval.

Property restrictions

Buying agricultural land as an NRI isn't allowed.

Documentation

Banks need tax forms and proofs before remitting.

Penalties

FEMA contraventions attract penalties, though many can be compounded.

Tax link

Remittances require tax to be paid or covered.

Investments

Mutual funds, shares and PPF have specific NRI rules.

Who is this for?

Returning NRIs have separate rules for bringing money back and redesignating accounts; we advise on those too.

NRI accounts compared

Choosing the right account:

What we'll need from you

Residency details

When you became NRI and your current status.

Account details

All Indian bank and investment accounts.

Source of funds

Documents showing where the money came from.

Sale documents

Sale deeds and purchase evidence for assets sold.

Tax records

Returns and TDS certificates.

Passport and visa

For KYC and status verification.

Pricing depends on the amount and complexity; Form 15CB certification is quoted separately.

How we handle repatriation

Our approach:

1. 1

   Review status

   We check your accounts and holdings for FEMA compliance.

2. 2

   Fix issues

   Accounts are redesignated and any past issues addressed.

3. 3

   Plan the remittance

   We work out what can be repatriated and from which account.

4. 4

   Check tax

   Tax on the funds is confirmed as paid or covered.

5. 5

   Certify

   Form 15CB is issued and Form 15CA filed.

6. 6

   Remit

   Documents are submitted to the bank for the remittance.

Staying compliant

Good habits:

Keep records

Keep proof of how assets were bought and funded.

Track the annual limit

Monitor NRO remittances against USD 1 million a year.

Update KYC

Keep KYC and residency status current with banks and fund houses.

Investments

Invest through the right NRI routes.

Inheritances

Document inherited assets, which have their own rules.

Return plans

Plan account changes before moving back.

Benefits and responsibilities