Key Takeaways
- NRE-linked investments are fully repatriable — no FEMA limit, no Form 15CA/15CB required.
- NRO-linked investments: USD 1 million per year limit; Form 15CA + 15CB mandatory for all remittances.
- TDS is deducted by AMC on NRI redemption — net proceeds after TDS are repatriated.
- File Indian ITR if TDS exceeds actual tax — claim refund before repatriation.
- Use NRE accounts for all future mutual fund investments if repatriation is likely — avoids the NRO repatriation complexity.
Introduction
An NRI invested ₹50 lakh in Indian mutual funds through an NRE account and now wants to move the redemption proceeds to her UK bank account. Can she? Yes — and the process depends on which account was used, applicable FEMA rules, and the required documentation.
Source Account & Repatriation Rules
| Source Account | Repatriation Permitted? | Process / Limit |
|---|---|---|
| NRE-linked investment | YES — fully repatriable | Principal + capital gains; direct to overseas account; no limit |
| NRO-linked investment | YES — with annual limit | USD 1 million per year; requires Form 15CA + Form 15CB |
| FCNR Account | YES — fully repatriable | In foreign currency; no limit; no conversion required |
The Step-by-Step Process
- Redeem mutual fund units — proceeds credit to linked NRE or NRO account.
- TDS on NRI redemption is deducted at source by AMC (12.5% equity LTCG, 20% STCG, 30% debt gains).
- For NRO: engage a CA to obtain Form 15CB (CA's tax certificate); file Form 15CA online on incometax.gov.in.
- Submit 15CA/15CB to your Indian bank with a remittance request.
- Bank processes transfer to your overseas account in foreign currency.
Claiming TDS Refund
If TDS deducted exceeds actual tax liability (common when DTAA reduces rates or when losses offset gains), file an Indian ITR. Refund is credited to your Indian bank account, from where it can be repatriated through the same process.
Disclaimer
Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance is not indicative of future results.
Baid Inbest LLP is an AMFI-registered Mutual Fund Distributor (ARN: 86114). This content is for educational purposes only and does not constitute personalised investment advice.
NRI planning to repatriate mutual fund proceeds? Inbest can guide the process — connect with us at contactus@inbestnow.com or call +91 9903921999.
