FEMA regulation on Repatriation

Dear Mr. Babu

Amount of Repatriation of Sale Proceeds (including Capital Gains) of Immovable Property

a) Property acquired in Forex:

Where property is acquired by NRI/PIO in forex, the amount to be repatriated shall not exceed

i. The amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in Foreign Currency Non-Resident Account, or

ii. The foreign currency equivalent, as on the date of payment, of the amount paid where such payment was made from the funds held is Non Resident External account for acquisition of the property or

iii. Amounts representing the refund of application/earnest money/purchase consideration made by the house building agencies/seller on account of non-allotment of flat/plot/cancellation of bookings/deals for purchase of residential/commercial property, together with interest, if any (net of income-tax payable thereon), provided the original payment was made out of NRE/FCNR(B) account of the account holder, or remittance from outside India through normal banking channels and the Authorized Dealer bank is satisfied about the genuineness of the transaction. Such funds may also be credited to the NRE/FCNR(B) account of the NRI/PIO, if they so desire, or

iv. Repatriation of sale proceeds of residential accommodation purchased by NRIs/PIO out of funds raised by them by way of loans from the authorized dealer banks/housing finance institutions to the extent of such loan/s repaid by them out of foreign inward remittances received through normal banking channel or by debit to their NRE/FCNR(B) accounts.

v. In case if sale proceeds are more than what NRI/PIO is eligible under (i) or (iv) above, he can repatriate such excess amount upto USD 1 million per financial year.

b) Property acquired otherwise than in Forex:

The NRIs / PIO are eligible to repatriate the sales proceeds of immoveable property acquired by way of purchase when he was in India or from funds held in his NRO Account or received by way of gift or inheritance. He is eligible to remit the sale proceeds net of taxes, up to USD One million per financial year.

c) Special Permission of RBI:

In case an NRI / PIO is not eligible to repatriate under (a) or (b) above or he wants to repatriate amount exceeding the limit of USD One Million, sale proceeds of such immovable property can be repatriated by obtaining special permission of the Reserve Bank of India on the ground of hardship and subject to terms and conditions as specified in the permission.

d) The amount realized on sale of tenancy rights are also covered under this.

e) It may be noted that, in case of residential property the repatriation of sale proceeds under “a (i to iv)” is restricted upto two such properties, but there is no restriction in respect of commercial properties.

Also, to affect Repatriation, NRI/PIO need to furnish Form A2, FEMA Declaration, Form 15CA, Form 15CB (CA Certificate) etc. to the Authorised Dealer affecting remittance.

Kindly note that there is no lock in period for Repatriation.

Do revert incase you need any further clarifications.

Best Regards

Juzer Sadikot