Every year we move several hundred crore from India to the US for clients — proceeds from property sale, inheritance, NRO balances, ESOP exits. The mechanics are not complicated, but the sequence matters. Out of order, and the wire bounces back from the US bank with a FinCEN compliance flag, or you trigger an Indian Form 15CB challenge.
1. Know which account the money sits in
FEMA treats your money differently depending on which Indian account holds it. The repatriation route, paperwork and limits all change.
| Account type | Source of funds | Repatriation limit |
|---|---|---|
| NRE (Non-Resident External) | Foreign income converted to INR | Fully and freely repatriable, no limit |
| FCNR (Foreign Currency Non-Resident) | Foreign currency deposits | Fully and freely repatriable, no limit |
| NRO (Non-Resident Ordinary) | India-source income (rent, dividend, sale proceeds) | USD 1 million per financial year, subject to documentation |
| Resident savings account (legacy) | Pre-NRI income | Must convert to NRO before repatriation |
2. The USD 1 million / FY rule, in plain English
Under FEMA Notification 13 and the LRS regime extended to NRIs in 2012, you may remit up to USD 1,000,000 (or equivalent) per Indian financial year out of your NRO account. The window is 1 April → 31 March. The cap is per individual, per FY, across all your Indian banks combined.
- Inheritance proceeds: no separate cap, falls within the same USD 1M FY ceiling.
- Sale of immovable property bought as an NRI: within the USD 1M ceiling.
- Sale of immovable property inherited or bought while resident: within the USD 1M ceiling, but bank may seek additional source-of-funds proof.
- Current income (rent, dividend, interest): outside the cap — fully repatriable each month without limit.
3. The Form 15CA / 15CB ritual
For any taxable remittance above ₹5 lakh in a financial year, the Indian Income Tax Act demands two forms be filed online before the bank releases the wire.
- Form 15CB — issued by a Chartered Accountant. Certifies the nature of remittance, the applicable tax (TDS under Section 195 or treaty rate), and that taxes have been deducted/paid.
- Form 15CA — filed by the remitter (you) on the income tax portal, quoting the 15CB UDIN. Part C is the standard part for large remittances.
4. Section 195 TDS — the trap that empties refunds
When the property buyer or company pays an NRI, they must deduct TDS under Section 195 — generally 20% (LTCG on property) or higher, on the full sale value, not on the gain. On a ₹4 crore flat sale, that means ₹80 lakh stuck with the tax department until your ITR refund lands 6–10 months later.
The workaround is the Lower Deduction Certificate under Section 197 — filed on Form 13 before the sale. We compute the actual capital gain, file Form 13, and obtain a certificate authorising the buyer to deduct TDS on the gain (not the gross value). On the same ₹4 crore sale with ₹40 lakh actual LTCG, the TDS drops from ₹80 lakh to ~₹8.3 lakh.
5. The full sequence we run for every USA-bound transfer
- Map the source: identify NRE vs NRO and whether the funds are currently in an account that can wire abroad.
- If the source is a property/ESOP sale: file Form 13 before the transaction, secure the LDC, and ensure the buyer/employer deducts the correct lower TDS.
- Park proceeds in an NRO account (if not already there).
- Compute taxes payable, deposit any shortfall via challan 280.
- Issue Form 15CB; the remitter files Form 15CA Part C, quoting the CB UDIN.
- Submit the A2 form + 15CA + 15CB pack + bank's repatriation form to the branch.
- Bank executes the SWIFT wire to the US beneficiary account. Funds typically credit within 2–4 working days.
- File the FY-end Indian ITR claiming any treaty relief and reconciling TDS / refund.
6. US-side reporting that NRIs forget
Once funds land in your US account, the Indian compliance is done — but the US side begins. As a US tax resident, you must report:
- FBAR (FinCEN 114) if your aggregate non-US accounts exceeded USD 10,000 at any point in the year.
- FATCA Form 8938 if your foreign assets exceeded the residency-based thresholds (USD 50,000–600,000).
- Schedule B on Form 1040 disclosing the foreign account.
- Foreign Tax Credit on Form 1116 for India tax paid — avoids double tax on the same income.
Want this done end-to-end?
We handle the full sequence — Form 13, 15CA/15CB, bank coordination, and US-side FBAR/FATCA support — on a fixed-fee basis. Most USA repatriations are completed inside three weeks once we have the documents in hand.