21 July 2025
Can the principal amount of NRO FD be repatriated? Yes, the principal amount of a fixed deposit held in an NRO account can be repatriated abroad, subject to certain conditions and limits under FEMA (Foreign Exchange Management Act) regulations.
Guidelines & Conditions: Source of Funds:
The funds invested in the NRO FD should be from permissible sources.
Typically, the source can be income earned in India like rent, dividends, pension, or transfer from NRE (Non-Resident External) account to NRO account.
Repatriation Limit:
As per RBI guidelines, repatriation from NRO accounts is permitted up to USD 1 million per financial year (April-March), including all eligible current income and the principal amount of the deposits.
Documents Required for Repatriation:
A certificate from a Chartered Accountant in Form 15CB confirming that applicable taxes (like TDS) have been paid or deducted.
Form 15CA to be submitted online with the Income Tax Department.
Request letter to the bank for repatriation.
Other KYC documents as required by the bank.
If NRO FD is funded from NRE account:
Transfer from NRE to NRO account is allowed, but NRE funds once transferred to NRO account become subject to NRO repatriation rules.
Hence, repatriation is subject to the USD 1 million limit and documentation.
Tax Implications:
Interest earned on NRO FD is subject to TDS at applicable rates.
Principal amount repatriation is tax-free but must comply with FEMA repatriation norms.
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