Repatriation Limit Explained: Moving USD 1 Million a Year Out of India

If you are an NRI sitting on sale proceeds from one or more Indian properties — or simply a large NRO balance you want to bring home — the single rule that governs how fast you can move that money out is the USD 1 million repatriation limit. Here is the short answer, before the detail: the RBI lets you repatriate up to USD 1 million (or its equivalent in any freely convertible currency) per financial year out of your NRO account, automatically, without seeking prior approval. The clock runs from 1 April to 31 March, and the cap is per person, per year — not per property and not per transaction.

That sounds simple, and the headline number is. Where NRIs get tripped up is everything around it: what counts toward the limit, how property sale proceeds interact with it, when you can move money outside this cap entirely, and how to sequence a large exit across multiple financial years so nothing gets stranded in India.

The USD 1 million scheme is what lets NRIs move large Indian proceeds — including premium property sales in cities like Mumbai — back home, one financial year at a time.

What the USD 1 million limit actually covers

The limit is not a "property limit." It is a per-person annual ceiling on all outward remittances from your NRO account. In a single financial year, the following all pool together and count against the same USD 1 million:

• Sale proceeds of residential or commercial property
• Rental income accumulated in your NRO account
• Dividends, interest and other investment income
• Gifts received in India
• Proceeds from inherited assets

So if you sell a property and net Rs 6 crore (roughly USD 720,000 at current rates), that alone uses most of your year's allowance — leaving little room to also remit your rental income or a maturing fixed deposit in the same year. Plan the whole year's outflow as one budget, not as separate, isolated transfers.

Two important nuances:

• The cap applies to the net amount after Indian taxes — capital gains tax and any TDS must be settled first. The limit is measured on what is left to send, not on the gross sale value.
• Funds already held in an NRE account are fully and freely repatriable and do not count against the USD 1 million NRO limit. The cap is an NRO-account constraint. This is why the source of your original investment matters so much (more on that below).

The big exception: property bought with foreign funds

This is the part most NRIs miss, and it can save you years of waiting.

If you originally purchased a residential property using foreign exchange — inward remittance or funds from your NRE/FCNR account — you can repatriate the original purchase amount outside the USD 1 million annual cap. Only the capital appreciation (the gain over your original investment) falls under the standard USD 1 million NRO limit.

There are firm conditions:

1. This enhanced repatriation is available for a maximum of two residential properties. Sell a third (or subsequent) residential property and its full proceeds — original investment included — fall under the annual USD 1 million cap.
2. You must be able to prove the original remittance, typically with the Foreign Inward Remittance Certificate (FIRC), your NRE account statements, and the registered sale deed.
3. The amount repatriated outside the cap is limited to what you actually brought in — not the appreciated value.

Inherited property does not qualify for this exception. If you inherited the asset rather than buying it with foreign funds, the full sale proceeds count toward your standard USD 1 million annual limit, no matter how large.

Whether your proceeds are repatriable outside the cap often comes down to one question asked at purchase: were the funds remitted from abroad?

How to sequence withdrawals over several years

Here is the reassuring part: there is no lifetime cap on repatriation. If your proceeds exceed USD 1 million in a year, the balance simply stays in your NRO account and you repatriate another USD 1 million in the next financial year — and the year after that — indefinitely, until the balance is exhausted.

A practical sequencing approach for a large multi-property exit:

1. Front-load the foreign-funded properties. For your two eligible residential properties bought with NRE/inward funds, repatriate the original investment first — it does not touch your annual cap, so it frees up your USD 1 million entirely for everything else.
2. Time sales across financial years. If you control the timing, completing one sale in March and another in April places them in two different financial-year buckets, effectively doubling your near-term repatriation headroom.
3. Settle taxes before each transfer. The limit is measured net of tax, and your bank will require proof. Get capital gains computed and TDS reconciled before you queue the remittance.
4. Park the waiting balance productively. Funds held in NRO while awaiting next year's window can stay in fixed deposits, bonds or shares so they keep earning rather than sitting idle.
5. For a single, urgent, very large transfer above USD 1 million, you can apply to the RBI through your authorised dealer (bank) for specific approval — but expect scrutiny and documentation; most NRIs simply sequence over years instead.

The paperwork: Form 15CA and 15CB (and what's changing)

Every outward remittance from an NRO account requires a compliance trail:

• Form 15CA — a self-declaration you file confirming the remittance complies with FEMA and Indian tax law.
• Form 15CB — a certificate from a Chartered Accountant confirming that the applicable Indian taxes have been paid or accounted for.
• Plus the bank's Form A2 and a remittance request form.

A regulatory note worth tracking: the Income Tax Department has begun phasing in Form 145 (replacing 15CA) and Form 146 (replacing 15CB) on the new e-filing portal. The substance is the same; the form numbers are migrating. Confirm with your CA which versions your bank currently accepts at the time of remittance.

Where this fits in your bigger property decision

Repatriation is the exit side of the equation — but the smartest move is to think about it at the entry side. The single factor that decides whether you can later move proceeds out freely is how you funded the purchase in the first place, and whether the documentation (FIRC, NRE statements, clean title, RERA registration) was captured correctly from day one. NRIs who buy without that foresight often discover, years later, that proceeds are locked behind the annual cap unnecessarily.

This is exactly where a buyer-side advisory earns its keep. At PropXplor, our PropScore report evaluates each premium property across 80+ data points — including FEMA-relevant funding paths, title and RERA verification — and a dedicated human advisor curates a managed shortlist suited to your exit and repatriation goals from the outset. We represent you, the buyer, so the structuring advice is genuinely rigorous.

Frequently asked questions

Is the USD 1 million limit per property or per person? Per person, per financial year. All your NRO outward remittances — across every property, plus rent, dividends and other income — share the same USD 1 million ceiling in a given year (1 April to 31 March).

Do funds in my NRE account count toward the USD 1 million limit? No. NRE balances are fully and freely repatriable and sit entirely outside the USD 1 million NRO cap. The limit constrains NRO-account outflows only.

Can I repatriate the proceeds of inherited property above the limit? No. Inherited property does not qualify for the "original foreign investment" exception, so its full sale proceeds count toward your standard USD 1 million annual cap. You sequence the balance over subsequent years.

What happens if my sale proceeds exceed USD 1 million in one year? The excess stays in your NRO account and you repatriate up to another USD 1 million in each following financial year — there is no lifetime cap. For a single larger transfer, you can seek specific RBI approval through your bank.

Is RBI approval needed to repatriate within the limit? No. Repatriation up to USD 1 million per financial year from NRO is automatic, subject only to filing Form 15CA/15CB (or the new 145/146) and your bank's documentation. Prior RBI approval is required only to exceed the cap.

Related reading on PropXplor

• NRI Home Loan Eligibility in India: A Complete Guide
• FEMA Rules for NRIs Buying Property in India
• Capital Gains Tax for NRIs Selling Property in India

Planning a multi-property exit or a large remittance and want it structured cleanly from purchase to repatriation? Book a free PropXplor consultation — we will map your funding paths, flag the FEMA documentation you need, and curate premium properties that protect your repatriation flexibility from day one.