Repatriating Property Sale Proceeds from an NRO Account

RBI permits an NRI to remit up to USD 1 million per financial year out of NRO account balances, including property sale proceeds, once Indian taxes are paid and documented. The limit covers all NRO outflows combined, outward wires and NRO-to-NRE transfers alike, and resets every 1 April. The scheme is generous on paper. In practice the money moves at the speed of your paperwork.

NRE vs NRO: why the account matters

Sale proceeds of Indian property go to the NRO account in almost all cases. One carve-out: if you bought the property using foreign exchange remitted from abroad or from NRE/FCNR funds, the principal amount you invested can be repatriated through the NRE route, restricted to two residential properties in a lifetime. The gains portion still goes the NRO route. Banks apply this carve-out with care, and you will need the original inward remittance proof. RBI's master directions on remittance facilities carry the exact conditions.

The USD 1 million scheme, in exact terms

• Limit: USD 1 million (or equivalent) per financial year, per person, across all your NRO accounts and all purposes.
• It is an aggregate cap. An NRO-to-NRE transfer eats the same limit as an outward wire.
• Unused limit lapses on 31 March. A Rs 12 crore sale (about USD 1.4 million) needs two financial years to move in full.
• Condition: applicable taxes paid or provided for, evidenced through the CA certificate (Form 146, old 15CB) and your declaration (Form 145, old 15CA).
• Remittances above the scheme limit need specific RBI approval. Banks seldom sponsor these requests without hardship grounds.

Each joint holder of an NRO account has their own USD 1 million limit, which is why ownership structure at the time of sale affects how fast a family can move funds. Plan this before the sale deed, not after.

Documents the bank will demand

Banks differ in format, not in substance. Expect to produce:

1. Request letter or the bank's repatriation application.
2. Form A2, the FEMA declaration with the purpose code for the remittance.
3. Form 145 acknowledgment (old 15CA).
4. Form 146 certificate from a CA (old 15CB) with UDIN.
5. Registered sale deed, and often the prior purchase deed to trace the asset.
6. Proof of tax: Form 16A from the buyer showing TDS deducted and deposited, or the lower-TDS certificate plus challans, or your assessed return.
7. PAN, passport, visa or OCI card, and proof of NRI status.
8. Bank statement showing the sale credit into the NRO account.
9. For inherited property: will or succession certificate, legal heir proof, and sometimes the death certificate of the previous owner.

Make one clean PDF set. Banks lose loose papers, and every resubmission restarts the clock.

NRO to NRE transfer: the same gate, different door

Moving funds NRO to NRE is repatriation in RBI's eyes. Same USD 1 million limit, same Forms 145/146, same tax-paid condition. NRIs do it to park funds in a tax-free, repatriable account while deciding where the money should live. The process:

1. Confirm headroom in your USD 1 million limit for the financial year.
2. Get the Form 146 certified and file Form 145.
3. Submit the bank's NRO-to-NRE transfer request with Form A2 and the document set above.
4. The bank moves the funds, most often inside a week once compliance signs off.

A realistic timeline

1. Day 0: sale proceeds credit the NRO account. TDS already deducted by the buyer.
2. Week 1 to 2: CA assembles the file, verifies TDS credits in 26AS, certifies Form 146, files Form 145.
3. Week 2 to 3: bank submission. First round of bank queries: purpose code, source trail, name mismatches.
4. Week 3 to 5: compliance clearance and the wire. SWIFT credit abroad in one to three working days after execution.

Five weeks is a good outcome. Files with inherited property, old purchases without cost records, or multiple funding sources run longer. Files where the buyer has not yet deposited the TDS stall outright: the CA cannot certify taxes paid against a credit that does not exist.

Where this goes wrong

• Money sits in the NRO account for years. The owner sold, got busy, and never ran the paperwork. Meanwhile the rupee depreciated and NRO interest got taxed every year. Repatriation delayed is value lost.
• The buyer's TDS does not show in 26AS because the buyer filed the TDS return late or under a wrong section. The bank will not move without proof of tax.
• Purpose code mismatch between Form A2 and Form 145. Banks reject over this more than any tax issue.
• The sale credit went into a resident savings account the NRI still holds from before emigrating. That account should have been redesignated NRO; the trail now needs repair before any bank will remit.
• A March sale with the file ready in April: the remittance lands in the new financial year and collides with that year's other planned transfers under the same USD 1 million cap.
• The CA certifies the gross sale amount instead of the available post-tax balance, and the bank bounces the certificate.

FAQ

How much can I repatriate from my NRO account in a year? USD 1 million or equivalent per financial year, all NRO remittances and NRO-to-NRE transfers combined, after taxes are settled.

Can I repatriate the full sale price of my property? Up to the USD 1 million cap per financial year, yes, once tax is paid. Larger amounts roll into the next financial year or need specific RBI approval.

Do I need RBI permission for repatriation? Not within the USD 1 million scheme. Your bank, as authorised dealer, processes it against the documents. Above the limit, RBI approval is required.

What forms are required? Form A2 for FEMA, plus Form 145 and Form 146 (the forms earlier numbered 15CA and 15CB) for tax. The bank adds its own request format.

Can sale proceeds go to my NRE account? The invested principal can, where the purchase was funded from inward remittance or NRE/FCNR funds, capped at two residential properties. Other proceeds move via NRO under the USD 1 million scheme.

How long does repatriation take after the sale? Three to five weeks with a clean file. The buyer's TDS deposit timing is the most common external delay.

Does the USD 1 million limit apply to NRO-to-NRE transfers? Yes. It is one shared annual cap across all routes out of NRO.

Get the money home, not stuck

66 MG Road runs repatriation end to end: TDS verification, Forms 145/146, Form A2 purpose codes, bank follow-up until the SWIFT confirmation. We run the sale itself too, so the file is repatriation-ready from day one. Teams in Mumbai, Pune, Bangalore, Hyderabad, Chennai, and Gurgaon. Itemized billing. See tax and repatriation services.

Saurabh Garg, founder, 66 MG Road

Sources

• RBI Master Circular on Remittance Facilities for Non-Resident Indians: https://www.rbi.org.in/commonman/english/scripts/Notification.aspx?Id=843
• RBI, FEMA notifications and master directions: https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx
• Income Tax e-filing portal, Form 145 user guide: https://www.incometax.gov.in/iec/foportal/newformpage/forms/form145-UM
• Income Tax Department, Form 145 (earlier Form 15CA) FAQs: https://www.incometaxindia.gov.in/documents/d/guest/form-145-faqs