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Repatriating money from an NRO account: the USD 1 million rule, Forms 145/146 and Form A2

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In short

  • NRIs can remit up to USD 1 million per financial year (1 April to 31 March) from NRO balances, sale proceeds and inherited assets, including transfers to an NRE account.
  • Current income such as rent, dividends and pension can be repatriated after tax and does not use up the USD 1 million limit.
  • From 1 April 2026, the tax declaration is Form 145 (old Form 15CA) and the CA certificate is Form 146 (old Form 15CB), needed when taxable remittances exceed Rs 5 lakh in the year and there is no tax officer's certificate.
  • All instalments under the USD 1 million facility must go through the same bank, and you must confirm the money is not borrowed or moved in from another NRO account.

You can send up to USD 1 million out of your NRO account every financial year (1 April to 31 March). The tax on that money must be paid first. Rent, dividends, pension and other current income can be repatriated separately after tax, outside the USD 1 million limit. For each remittance you file Form 145 online, usually with a CA certificate in Form 146, and give the bank Form A2.

The forms changed on 1 April 2026, when the Income-tax Act, 2025 replaced the 1961 Act. The FEMA limit did not change.

The USD 1 million rule in plain terms

The limit comes from RBI’s Master Direction on Remittance of Assets, which applies to NRIs and persons of Indian origin. It covers three kinds of money:

  • balances in your NRO account;
  • sale proceeds of assets in India, such as property or shares;
  • assets you inherited, or received under a settlement that takes effect on the owner’s death.

The limit is per person, per financial year. It resets every 1 April. Any transfer from NRO to your own NRE account also counts towards it. If you need to send more than USD 1 million in a year, you need prior RBI approval.

RBI attaches three conditions. You must give documentary evidence of where the money came from. If you remit in instalments, all of them must go through the same authorised dealer bank. You must also give an undertaking that the money is your own NRO balance and not borrowed or shifted from someone else’s NRO account.

What counts and what does not

Money in your NRO account Uses the USD 1 million limit? Notes
Rent, dividends, interest, pension (current income) No Repatriable after tax
Proceeds from selling a flat bought with rupee funds Yes Tax and TDS must be settled first
Inherited property or money Yes Proof of inheritance needed
Gift received from a resident relative Yes Treated as an NRO balance
Maturity of an NRO fixed deposit (principal) Yes The interest part is current income
Transfer from NRO to your NRE account Yes Counts the same as a remittance abroad

NRE and FCNR(B) balances are not part of this limit. They are fully repatriable at any time.

Property sale proceeds

How you bought the property decides the route. RBI’s property FAQs set out a separate route for property bought as an NRI with foreign money.

Say you paid in foreign exchange through banking channels, or from an NRE or FCNR account. Then the sale proceeds can be repatriated under that route. For residential property, this is allowed for no more than two properties. The amount is linked to what you originally paid in foreign exchange.

If you bought the property while resident, with rupee funds, or inherited it, the proceeds go into NRO. They then leave India under the USD 1 million annual limit.

Either way, the buyer must deduct TDS under Section 393(2) of the 2025 Act (Section 195 of the 1961 Act). Our guide on NRI property sale TDS and capital gains explains the tax. A lower TDS certificate in Form 128 can stop excess tax being locked up.

Step-by-step: repatriating from NRO

1. Make sure the tax is settled

The bank will not send money abroad until tax on it is paid or deducted. For interest and rent, that means TDS. For a property sale, it means the buyer’s TDS plus any balance tax you owe.

2. Get Form 146 from a chartered accountant

Form 146 replaced Form 15CB on 1 April 2026. It is required for Part C of Form 145. Part C applies when taxable remittances in the tax year exceed Rs 5 lakh and you hold no Assessing Officer certificate.

The CA checks the source of funds, confirms the tax paid and records any treaty relief. The CA files Form 146 on the e-filing portal with a UDIN. You must first add the CA under “Authorised Partners” in your portal profile.

3. File Form 145 on the e-filing portal

Form 145 replaced Form 15CA. It has four parts:

  • Part A: taxable, and the year’s total is Rs 5 lakh or less;
  • Part B: taxable, above Rs 5 lakh, with an Assessing Officer certificate;
  • Part C: taxable, above Rs 5 lakh, with Form 146;
  • Part D: not taxable.

For Part C, you enter the Form 146 acknowledgement number and the portal pre-fills the details. You e-verify with EVC or a digital signature. Banks generally ask for both Form 145 and Form 146 for NRO repatriation, so ask your branch which parts it expects. Our Form 145 and 146 guide goes through each part.

4. Submit Form A2 and the bank’s declaration

Form A2 is the bank’s outward remittance application under FEMA. For an NRO-to-NRE transfer, banks use their own transfer declaration instead. This is also where you sign the undertaking on source of funds.

5. The bank checks and sends the money

The bank tallies amounts across Forms 145, 146 and A2. It checks your year-to-date total against the USD 1 million limit and sends the money by SWIFT or credits your NRE account.

Documents to keep ready

  • PAN and passport with visa or OCI card
  • Recent NRO statement showing how the balance was built
  • Form 145 acknowledgement and Form 146 with UDIN
  • Form A2 or the bank’s NRO-to-NRE declaration
  • Source proof: sale deed, rent agreement, dividend statements, will or succession certificate
  • TDS certificates and, for property, the capital gains computation
  • Beneficiary bank details abroad (SWIFT code, IBAN where used)

Timelines

There is no fixed statutory timeline. Form 146 depends on how quickly your CA can verify the source. Form 145 is filed online and is quick once Form 146 exists.

The bank’s own processing is usually short once documents match. Most delays come from mismatched amounts or missing source proof. Start at least two to three weeks before you need the money, and earlier if a financial year-end is close.

Worked example across two financial years

Rahul lives in Toronto. In January 2027 he sells a flat in Bengaluru that he bought in 2012, when he was resident. After the buyer’s TDS and his remaining tax, Rs 10.80 crore lands in his NRO account. He also gets Rs 4,80,000 a year in rent on another flat. Assume Rs 90 per US dollar.

Financial year 2026-27 (to 31 March 2027)

USD 1 million x Rs 90 = Rs 9.00 crore. He sends Rs 9.00 crore to Canada in February 2027 with Form 145 Part C, Form 146 and Form A2. Balance left: Rs 10.80 crore - Rs 9.00 crore = Rs 1.80 crore.

His rent is current income. After TDS, he can send it abroad in the same year without touching the USD 1 million limit.

Financial year 2027-28 (from 1 April 2027)

The limit resets. He remits the remaining Rs 1.80 crore in April 2027. Rs 1.80 crore / Rs 90 = USD 200,000, well within the new year’s USD 1 million. He needs a fresh Form 145, Form 146 and Form A2 for this remittance, through the same bank.

If Rahul had tried to send all Rs 10.80 crore in March 2027, he would have needed RBI approval for the excess of USD 200,000. Splitting the transfer across 31 March avoids that.

Common mistakes

  • Counting by calendar year. The limit runs April to March, not January to December.
  • Forgetting NRO-to-NRE transfers. They use up the same USD 1 million as a remittance abroad.
  • Switching banks mid-year. RBI requires instalments to go through the same authorised dealer.
  • Using old forms. Form 15CA and 15CB are not accepted for remittances made from 1 April 2026.
  • Mixing up current income and capital. Keep rent and dividends traceable on statements so they are not counted against the limit.
  • Paying excess TDS on a property sale. Without a lower TDS certificate, excess tax is deducted and stays locked until your refund arrives.

Large property-sale remittances often involve capital gains questions. A chartered accountant who issues Form 146 regularly can flag gaps before you reach the bank.

What to do next

Sources

This guide explains the rules as they stood on 25 October 2026. It is general information, not tax, legal or financial advice. Rules change, and individual cases have exceptions, so confirm your position with a chartered accountant before acting. Spotted an error? Tell us and we will correct it.