The USD 1 million per financial year limit for repatriation of funds from an NRO (Non‑Resident Ordinary) account to a foreign bank account remains unchanged under the Foreign Exchange Management (Non‑debt Instruments) Rules, 2026. Contrary to some rumours, there is no increase in the general limit for 2026–27, though the government has clarified that the limit applies per individual NRI per financial year across all NRO sources (rent, pension, property sale proceeds, etc.) except for sale of residential property (which has a separate USD 1 million per property lifetime limit for up to two properties).
At Hashmi Law Associates (HLAPL), we assist NRIs with repatriation, FEMA compliance, and tax planning. This guide explains the practical operation of the USD 1 million limit, the documentation process, and common mistakes to avoid.
1. The USD 1 Million Limit – Current Position (2026)
Under the Foreign Exchange Management (Non‑debt Instruments) Rules, 2019 (as amended in 2026), the repatriation limits are as follows:
| Source of Funds | Repatriation Limit | Remarks |
|---|---|---|
| NRO account (rent, pension, dividends, interest) | USD 1 million per financial year (aggregate) | Includes all sources except property sale proceeds |
| Sale of residential property (self‑acquired or inherited) | USD 1 million per property (up to 2 properties lifetime) | Separate from the general USD 1 million limit |
| NRE account funds | No limit | Fully repatriable without cap |
| Sale of commercial property | USD 1 million per financial year | General limit applies (no per‑property exception) |
Citation: Foreign Exchange Management (Non‑debt Instruments) Rules, 2019, Rule 9(1)(b); RBI Master Direction on FEMA, Updated March 2026.
2. Practical Application of the USD 1 Million Limit
The limit applies to the aggregate of all remittances from your NRO account within a financial year (April 1 to March 31). For example:
- If you repatriate USD 400,000 for a child's education in June, and later USD 300,000 for medical treatment in December, you have remaining USD 300,000 capacity for that financial year.
- If you sell a residential property and repatriate USD 800,000, that amount is not counted against the general USD 1 million limit – it uses the separate per‑property limit.
- If you sell two residential properties in the same financial year and repatriate USD 1 million from each (total USD 2 million), that is permitted under the per‑property lifetime limit.
Important: The lifetime per‑property limit of USD 1 million applies only to residential properties and only to two properties in the NRI's lifetime. For a third residential property, only the general USD 1 million per financial year limit applies.
3. Step‑by‑Step Repatriation Process Under 2026 Rules
Step 1: Ensure funds are in NRO account
All repatriable funds (rent, pension, property sale proceeds) must first be credited to your NRO account. You cannot repatriate directly from a foreign currency account without routing through NRO.
Step 2: Obtain Tax Clearance / CA Certificate
- For remittances up to ₹10 lakh: No Form 15CA/15CB required. Only a simple declaration (Form A2) to the bank.
- For remittances above ₹10 lakh: Form 15CB (CA certificate) and Form 15CA (online declaration) mandatory.
- For property sale proceeds: Form 15CA, Form 15CB, ITR acknowledgment, TDS certificate (Form 16B), and sale deed required.
Step 3: File Form 15CA online
Log in to the Income Tax e‑filing portal → Services → e‑Form 15CA. Fill in the details of the remittance, attach Form 15CB (if required), and submit. Download the acknowledgment.
Step 4: Submit documents to your bank
Provide the following to the bank where your NRO account is held:
- Form 15CA acknowledgment and Form 15CB (if applicable)
- Form A2 (application for remittance)
- Source documents (rent agreement, sale deed, pension order, etc.)
- Passport and visa copies (proof of NRI status)
- Foreign bank account details (SWIFT code, account number)
Step 5: Bank processes remittance
The bank verifies the documents and processes the remittance within 3‑5 working days. The NRO account is debited, and the foreign bank account is credited (in the currency of that country).
Citation: Income Tax Rules, 1962, Rule 37BB; Form 15CA filing instructions (CBDT Notification No. 12/2026).
4. Common Mistakes That Cause Repatriation Delays or Rejection
- Incorrect Form 15CA/15CB: Using wrong part (Part A/B/C) for the type of remittance.
- Missing TDS certificate (Form 16B): For property sale proceeds, if the buyer has deducted TDS, Form 16B is mandatory.
- Exceeding the USD 1 million limit unknowingly: Tracking all NRO remittances within the financial year is essential; banks may reject if the aggregate exceeds the cap.
- Insufficient documentation for source of funds: The bank will ask for proof of how the funds were earned (rent agreement, sale deed, pension order).
- Delay in filing income tax return: For property sale proceeds, the ITR must be filed before repatriation; otherwise, banks will reject the application.
5. Recent Changes in Form 15CA/15CB (2026)
- Threshold increased: Form 15CA is now required only for remittances exceeding ₹10 lakh (increased from ₹5 lakh).
- Simplified for NRO to NRE transfers: No Form 15CA/15CB required for transferring funds from NRO to NRE account, provided taxes have been paid on the NRO balance.
- E‑verification of Form 15CB: CAs must now e‑verify Form 15CB on the Income Tax portal; paper certificates are no longer accepted.
- Automatic pre‑fill of ITR data: The Form 15CA portal now pre‑fills income tax details from the latest ITR, reducing manual errors.
6. Special Case: Repatriation of Inherited Property Sale Proceeds
For inherited property, the repatriation process is similar but requires additional documents:
- Will / probate / succession certificate (depending on the religion and jurisdiction)
- Legal heir certificate from the Tehsildar / District Magistrate (if no will)
- Mutation of property in the NRI's name before sale
- Capital gains tax calculation (cost of acquisition is taken as the original owner's cost)
The per‑property USD 1 million limit applies to inherited residential properties as well, provided the NRI holds the property for at least 12 months from the date of inheritance before sale (reduced from 24 months under 2026 rules).
7. How HLAPL Can Help NRIs with Repatriation
At Hashmi Law Associates (HLAPL), we offer comprehensive repatriation assistance:
- Form 15CA/15CB filing: Coordinating with CAs for certificate and filing Form 15CA online.
- Tax planning: Advising on the optimal timing of remittances to stay within the USD 1 million limit and minimise tax.
- Documentation: Preparing the declaration to the bank and verifying source documents.
- Property sale coordination: Assisting with sale deed, TDS compliance, and repatriation of proceeds.
- Inheritance matters: Obtaining succession certificates, probate, and mutation of inherited property.
Contact our NRI legal experts in New Delhi for a consultation on repatriation.
Citation: Foreign Exchange Management (Non‑debt Instruments) Rules, 2019, Rule 9; RBI Master Direction No. 12/2025‑26; Income Tax Rules, 1962, Rule 37BB; CBDT Circular No. 10/2026 dated March 15, 2026 (Form 15CA/15CB).