Repatriation of Investments, income and Sale, Proceeds of Assets by NRI/PIO

Besides investment in Bank deposits, NRIs and PIOs can invest in various financial instruments in India with earnings being repatriable. These investments include stocks through portfolio investment scheme accounts, government securities, public sector undertaking Bonds, the National Pension Systems, or units issued by Infrastructure Debt Funds. Repatriation of all the foreign source investments and accrued income thereon are covered under the Foreign Exchange Management Act (FEMA) of 1999.

Repatriation of money held in NRE and FCNR (B) deposits:

NRIs can also transfer your funds (Principal & Interest amount) including Bonds, the National Pension Systems, or units issued by Infrastructure Debt Funds to a foreign account credited to your NRE account, without any complications and restrictions if the investments are routed through his/her NRE/FCNR(B) account or directed remitted through foreign sources.

Repatriation of investments in the capital market:

Foreign Institutional Investors (FIIs), Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS). Under this scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India.- the total purchase of all NRIs/PIOs both, on repatriation and non-repatriation basis, being within an overall ceiling limit of (a) 24 per cent of the company’s total paid up equity capital and (b) 24 per cent of the total paid-up value of each series of convertible debenture; and – the investment made on repatriation basis by any single NRI/PIO in the equity shares and convertible debentures not exceeding five per cent of the paid-up equity capital of the company or five per cent of the total paid-up value of each series of convertible debentures issued by the company.

An NRI is required to obtain a certificate from a Chartered Accountant, which has to be submitted to RBI along with an undertaking, which will be signed by the individual himself or by any other person authorized by him for repatriation of the above investment.

Portfolio Scheme:

An NRI should authorize only one branch of one bank in India for the Portfolio Investment Scheme (PIS). Power of attorney should be granted in favour of resident Indian/relatives to carry out the various formalities. The dividend and the capital originally invested along with the capital gains thereon, be repatriated only after he obtains a certificate from a Chartered Accountant declaring that proper tax has been paid or satisfactory arrangements have been made to pay it in proper time or if the NRI so wishes a no-objection certificate can be obtained from the Income-tax Department.

On receiving such NOC or Chartered Accountant’s certificate, the proceeds would be repatriated or credited to the NRE/FCNR account of the NRI (which is equivalent to repatriation).

1. Money transfer The Property purchased as NRI:
2. Property bought as a resident Indian is sold:
3. Inherited/gifted property is sold

Non-resident Indians are allowed to repatriate the money from the sale of property acquired by them as NRI, Resident Indians, or inherited/gifted. To know the details read the following post.

REPATRIATION OF THE SALE PROCEEDS OF IMMOVABLE PROPERTY

In the event of the sale of immovable property by a PIO, the sale proceeds may be repatriated outside India, provided selling more than 2 residential properties, you should seek the RBI’s approval through authorised dealer (bank) Purchased the property using your NRO account or from Indian income, NRI can repatriate up to USD 1 million per financial year.

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