How NRI can transfer NRO account money out of India
Money from NRE account can be easily transferred out of India. However, the same cannot be said for the NRO account. There are certain document requirements, approval needed from Reserve Bank of India (RBI) and annual limit that must be adhered to in order to transfer money from NRO account out of India.
Read on to know the rules an NRI must follow to take the NRO money out of India.
Source of funds
The source of funds play an important role in determining the amount of money that can be remitted out of India from an NRO account.
Suresh Surana, Founder, RSM India — a business consulting group, says, «An NRI is permitted to remit up to USD 1 million per financial year out of the balances held in the NRO account. This limit is applicable to the funds sourced from non-current income. However, there is no limit on remittance of current income abroad from NRO account.»
Kritika Tewani, Associate Director, Deloitte Touche Tohmatsu India LLP says, «Repatriation of current income like rent, dividend, pension, interest, etc. of NRIs out of their NRO account is not subject to any limit. That said, remittance of assets (not being current income) is subject to USD 1 million per financial year. The term 'current income' has not been defined under the Foreign Exchange Management Act, 2000 (FEMA). However, according to RBI circulars, it includes income in the nature of rent, pension, salary, dividend, interest income etc. An example of remittance of assets (not counted as part of current income) can be proceeds from sale of property or mutual funds in India.»
Amarpal S. Chadha, Tax Partner and Mobility Leader, EY India says, «As per FEMA Regulations, an NRI or PIO can remit or repatriate the balances in NRO account up to USD 1
