Can NRIs remit funds from India?
Yes, they can. They can remit the money held in their NRO (non-resident saving) accounts. They can also remit the proceeds from sale of assets owned by them or from sale of inherited assets. However, there is a cap on the amount that can be remitted in each financial year, up to $1 million.
If an NRI wants to remit more than this out of India within a financial year, he must seek the central bank’s prior approval. Also, when the amount is being remitted from an NRO account, the bank needs to ensure these funds are from the NRI’s legitimate receivables in India.
What are the tax implications?
Remittances can only be made of funds on which all taxes due in India have been paid. It is the responsibility of the authorised dealer to ensure this.