Sending money out of India by Residents & Non-Residents - Overview
Everything about repatriation of funds abroad from India
Not only NRIs but Indian residents can now also remit funds abroad for various purposes. In most cases, no approval of the Reserve Bank of India (RBI) is required. Here is a summary on repatriation of funds from India to overseas destinations.Repatriate freely without approval of RBI
Money in your NRE Account International Debit Card Linked to your NRE account can be used across the world. Including withdrawing of cash at designated ATM’s in India as well as several foreign countries Funds in your FCNR accountRepatriable subject to taxes being paid
Current income deposited in NRO accounts such as:
Rental income Dividend from shares Interest from bank deposits Pension income Business profits Income from the sale or inheritance of property in India [up to US$ one million, per financial year]. Remittance facility in respect of sale proceeds of immovable property is not available to citizens of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan, Iran, Nepal and Bhutan. Foreign citizen working in India for a foreign company can remit his/her salaryForeign exchange available to Indian Residents
Foreign exchange available for various purposes to Indian residents are summarized: Liberalized Remittance Scheme (LRS) allows all resident individuals to freely remit up to US$ 250,000 per financial year for any permissible transactions. LRS is for Indian residents and not for NRIs. Permissible transaction examples are: Gifts or donations Purchase of shares Purchase of property - The LRS limit increased from US$ 125,000 to US$ 250,000 makes it easier for Indian residents to buy property abroad. The increased LRS limit makes properties within buying range, the previous limit was too low considering foreign property prices. Foreign currency accounts at overseas banks Help relatives living abroad Education - Travel - Medical treatment etc. There are some restrictions under LRS whereby such remittances are not allowed. For example you cannot remit funds abroad under the LRS scheme for: To be used for trading on foreign exchange markets, margin or margin calls to overseas exchanges. The purchase of foreign currency convertible bonds issued by Indian companies abroad is also not permissible under LRS scheme. Purchase of lottery tickets Remittances to Bhutan, Nepal, Mauritius and Pakistan are not allowed. Remittances mentioned below are additional repatriation allowances and do not affect the US$ 250,000 limit allowed under LRS scheme. International Tourism: Allowed US$ 10,000 per financial year Business visit abroad: Allowed US$ 25,000 per trip Medical treatment abroad: US$ 100,000 on self-declaration or more on production of valid estimate from hospital or doctor abroad. Further US4 25,000 is allowed as maintenance expense. Education: When going abroad for higher studies US$ 100,000 or higher when estimate provided by the educational institute the person is going to attend. Employment: When going abroad for employment US$ 100,000 No foreign exchange allowed for trips to Nepal or Bhutan regardless if it is for tourism or business purpose.
Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional
accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has
been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail.
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© Copyright 2006 Nriinformation.com
Sending money out of India
by Residents & Non-
Residents - Overview
Everything about repatriation of
funds abroad from India
Not only NRIs but Indian residents can now also remit funds abroad for various purposes. In most cases, no approval of the Reserve Bank of India (RBI) is required. Here is a summary on repatriation of funds from India to overseas destinations.Repatriate freely without approval
of RBI
Money in your NRE Account International Debit Card Linked to your NRE account can be used across the world. Including withdrawing of cash at designated ATM’s in India as well as several foreign countries Funds in your FCNR accountRepatriable subject to taxes being
paid
Current income deposited in NRO accounts
such as:
Rental income Dividend from shares Interest from bank deposits Pension income Business profits Income from the sale or inheritance of property in India [up to US$ one million, per financial year]. Remittance facility in respect of sale proceeds of immovable property is not available to citizens of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan, Iran, Nepal and Bhutan. Foreign citizen working in India for a foreign company can remit his/her salaryForeign exchange available to
Indian Residents
Foreign exchange available for various purposes to Indian residents are summarized: Liberalized Remittance Scheme (LRS) allows all resident individuals to freely remit up to US$ 250,000 per financial year for any permissible transactions. LRS is for Indian residents and not for NRIs. Permissible transaction examples are: Gifts or donations Purchase of shares Purchase of property - The LRS limit increased from US$ 125,000 to US$ 250,000 makes it easier for Indian residents to buy property abroad. The increased LRS limit makes properties within buying range, the previous limit was too low considering foreign property prices. Foreign currency accounts at overseas banks Help relatives living abroad Education - Travel - Medical treatment etc. There are some restrictions under LRS whereby such remittances are not allowed. For example you cannot remit funds abroad under the LRS scheme for: To be used for trading on foreign exchange markets, margin or margin calls to overseas exchanges. The purchase of foreign currency convertible bonds issued by Indian companies abroad is also not permissible under LRS scheme. Purchase of lottery tickets Remittances to Bhutan, Nepal, Mauritius and Pakistan are not allowed. Remittances mentioned below are additional repatriation allowances and do not affect the US$ 250,000 limit allowed under LRS scheme. International Tourism: Allowed US$ 10,000 per financial year Business visit abroad: Allowed US$ 25,000 per trip Medical treatment abroad: US$ 100,000 on self- declaration or more on production of valid estimate from hospital or doctor abroad. Further US4 25,000 is allowed as maintenance expense. Education: When going abroad for higher studies US$ 100,000 or higher when estimate provided by the educational institute the person is going to attend. Employment: When going abroad for employment US$ 100,000 No foreign exchange allowed for trips to Nepal or Bhutan regardless if it is for tourism or business purpose.
