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Repatriation from NRO account – critical & They can always repatriate back $250K per year using LRS?
This is Incorrect assumption
Correct position (as per RBI):
LRS – Liberalised remittance scheme (USD 250,000 limit) applies ONLY to Resident Individuals (it is an RBI scheme that allows a resident Indian to send Money Abroad, applies only to resident individual (Not NRI)
Allows spending up to 250,000 UDS per financial Year , for Education, Medical, gift, Travel , investment.
NRIs CANNOT use LRS
Repatriation from NRO is governed under FEMA, not LRS
What is allowed instead:
NRIs can repatriate up to USD 1 million per financial year from NRO accounts
This includes:
Sale proceeds
Rental income
Other legitimate balances
Subject to:
Payment of applicable taxes
Form 15CA / 15CB
Bank approval & documentation
So, repatriation is possible, but not automatic and not under LRS.
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