Step 1: Ensure the Property Sale Is RBI-Compliant
Repatriation starts with a compliant sale.
Before money can move out of India, authorities check:
- Property ownership validity
- Mode of acquisition (purchase vs inheritance)
- Sale consideration received via banking channels
Any informal payment or documentation gap can halt repatriation entirely.
Step 2: Calculate Capital Gains Accurately
Capital gains tax must be computed correctly before funds are transferred.
This includes:
- Identifying long-term vs short-term gains
- Applying indexation
- Claiming eligible exemptions
Why this matters: Excess TDS is one of the biggest reasons NRIs lose lakhs during repatriation.
Step 3: Pay Applicable Taxes in India
Before repatriation:
- Capital gains tax must be paid
- Tax challans must be generated
- Supporting computation documents prepared
Banks will not process outward remittance without verified tax compliance.
Step 4: Prepare Mandatory RBI & Tax Forms
To move funds abroad, NRIs must submit:
- Form 15CA – declaration of remittance
- Form 15CB – CA-certified tax confirmation
These forms validate:
- Source of funds
- Tax paid
- Eligibility for repatriation
Errors here are a common cause of rejected remittances.
Step 5: Transfer Funds from NRO Account
Sale proceeds are typically credited to an NRO account.
From there:
- Funds are remitted abroad under the USD 1 million annual limit
- Transfers are processed via authorized dealers
Choosing the wrong bank channel often results in:
- Poor exchange rates
- High bank charges
- Unclear timelines
Step 6: Receive Funds in Canada or USA
Once processed correctly:
- Funds are credited directly to your overseas account
- Transfers are fully compliant with Indian and foreign regulations
- Documentation remains audit-ready
Common Repatriation Mistakes NRIs Make
- Assuming banks handle tax optimization
- Ignoring repatriation limits
- Filing incorrect 15CA/15CB forms
- Using standard bank FX rates without comparison
Each mistake can cost time, money, or both.
Why End-to-End Planning Matters
Repatriation is not just a wire transfer.
It’s a coordinated process involving:
- Property law
- Indian taxation
- RBI compliance
- Cross-border money movement
When handled together, NRIs benefit from:
- Faster transfers
- Better exchange rates
- Lower tax leakage
- Complete peace of mind
If you’re an NRI in Canada or the USA planning to sell property in India, the difference between a smooth exit and years of frustration comes down to planning before the sale, not after.