Repatriation of Profits and Funds From India (2026): Rules, Limits and Process

For foreign investors, multinational subsidiaries, and Non-Resident Indians (NRIs), one question matters as much as making money in India: how do you legally take it out? Repatriation, the process of transferring funds from India to another country, is governed by the Foreign Exchange Management Act (FEMA) and administered through your bank as an Authorised Dealer. This 2026 guide explains the main repatriation routes, the rules and limits, the crucial role of Form 15CA and 15CB, and the tax and documentation you need to get it right.

What is repatriation?

Repatriation means converting Indian rupees into foreign currency and transferring them abroad, whether it is a company sending profits to its overseas parent, an investor taking back sale proceeds, or an NRI moving income to their country of residence. Because it involves the outflow of foreign exchange, every repatriation must comply with FEMA and RBI regulations, and is routed through an Authorised Dealer (AD) bank.

The key principle is that funds which came in through proper banking channels, or income earned legitimately in India, can generally be repatriated after paying applicable taxes and following the prescribed process.

Common repatriation routes

1. Dividend repatriation by companies

An Indian company with foreign shareholders can distribute profits as dividends and remit them abroad. Dividends are freely repatriable under FEMA once declared in accordance with the Companies Act, provided the original investment was made and reported correctly. Since dividends are now taxable in the shareholder’s hands, TDS is deducted before remittance.

2. Repatriation of sale proceeds of investment

When a foreign investor sells shares or a business interest in India, the sale proceeds (net of taxes) can be repatriated, subject to FEMA pricing guidelines and reporting. FDI made on a repatriable basis allows the capital and gains to flow back out.

3. NRI account repatriation (NRE, NRO, FCNR)

NRIs repatriate through designated bank accounts, and the account type is decisive:

• NRE (Non-Resident External) and FCNR accounts: Balances, including principal and interest, are fully and freely repatriable without any limit.
• NRO (Non-Resident Ordinary) accounts: Used for income earned in India such as rent, dividends or pension. Repatriation from an NRO account is capped at USD 1 million per financial year (April to March), after payment of applicable taxes.

The USD 1 million scheme

The USD 1 million per financial year limit is central to NRO repatriation and to remittances by resident but foreign-owned assets in certain cases. Under this facility, an NRI (or a person of Indian origin) can remit up to USD 1 million per financial year from their NRO account balances, sale proceeds of property, and other legitimate assets in India, after taxes are paid and the prescribed forms are submitted. Amounts in NRE and FCNR accounts are outside this cap, as they are freely repatriable.

Form 15CA and Form 15CB: the compliance backbone

Almost every repatriation of taxable income requires the filing of Form 15CA (a declaration by the remitter) and, in many cases, Form 15CB (a certificate from a Chartered Accountant). This is how the tax department ensures tax is deducted before money leaves India.

• Form 15CB is a CA’s certificate confirming the nature of the remittance, its taxability under the Income-tax Act and the relevant Double Taxation Avoidance Agreement (DTAA), and the correct TDS rate.
• Form 15CA is filed by the remitter on the income tax portal, drawing on the 15CB where required. It has four parts depending on the amount and taxability.

Broadly, for taxable remittances above Rs 5 lakh in a financial year, both Form 15CB and Part C of Form 15CA are needed. Smaller or non-taxable remittances may need only part of Form 15CA, and some specified payments are exempt. Getting this analysis right is where a professional adds real value, since an error can block the remittance or create a short-deduction liability.

Taxation on repatriation

Repatriation itself is not a separate tax, but the underlying income is taxed before it goes out:

• Dividends: taxable in the shareholder’s hands, with TDS deducted at the applicable rate (often reduced under a DTAA).
• Capital gains: on the sale of shares or property, taxed as per the holding period and asset type.
• Rental and other income: taxed in India, with TDS where applicable.

Where a DTAA exists between India and the recipient’s country, the investor may claim a lower rate or credit, provided a Tax Residency Certificate (TRC) and Form 10F are furnished.

Documents typically required

• Form 15CA and Form 15CB (as applicable)
• Board resolution and dividend declaration (for company dividends)
• Auditor’s certificate confirming the remittance is out of distributable profits
• Proof of the original investment and its FEMA reporting (for FDI cases)
• Tax Residency Certificate and Form 10F, where a DTAA benefit is claimed
• Bank request form (Form A2) and the AD bank’s remittance documentation

Step-by-step process

1. Confirm the source of funds is repatriable and taxes on the underlying income are paid or deducted.
2. Engage a CA to determine taxability and issue Form 15CB where required.
3. File Form 15CA on the income tax portal.
4. Submit Form A2 and supporting documents to your AD bank.
5. The bank verifies FEMA compliance and remits the funds abroad in foreign currency.

Cross-border remittances sit at the intersection of FEMA and income-tax law, and small errors can freeze funds or trigger scrutiny. If you are planning to repatriate dividends, sale proceeds or NRO balances, our team can handle the taxability analysis, Form 15CA and 15CB filing, and coordination with your bank end to end.

Frequently asked questions

Can a company freely repatriate profits from India?

Yes. An Indian company can repatriate profits to foreign shareholders as dividends, which are freely repatriable under FEMA once properly declared, provided the original investment was reported and applicable TDS is deducted before remittance.

What is the repatriation limit from an NRO account?

Repatriation from an NRO account is capped at USD 1 million per financial year, after payment of applicable taxes and submission of Form 15CA/15CB. NRE and FCNR account balances are fully repatriable with no such limit.

Is Form 15CB always required to send money abroad?

Not always. Form 15CB (a CA certificate) is generally required for taxable remittances exceeding Rs 5 lakh in a financial year. Smaller or non-taxable remittances may need only part of Form 15CA, and some specified payments are exempt.

Do I pay tax when I repatriate money from India?

Repatriation is not a separate tax, but the underlying income – such as dividends, capital gains or rent – is taxed in India before remittance. A DTAA may reduce the rate if you provide a Tax Residency Certificate and Form 10F.

Which account should an NRI use for easy repatriation?

An NRE or FCNR account is best for easy repatriation, as balances are fully and freely repatriable. An NRO account is used for India-sourced income but is subject to the USD 1 million annual limit.