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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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