NRI Repatriation Explained: How to Bring Land Sale Money from Bina Back to Your Foreign Account

Under FEMA, an NRI can repatriate the sale proceeds of immovable property purchased out of NRE/FCNR funds or inward remittance, up to USD 1 million per financial year (April–March). This limit covers the principal investment and the capital gains, provided the original purchase was made through legitimate banking channels.

If you bought the land from NRO funds (Indian-source income), the same USD 1 million limit applies, but you must have paid all applicable taxes in India before repatriation.

The key principle: the money must have entered India legally, and it must leave legally. Every rupee you remitted in to buy the plot can be remitted back out when you sell — plus the profit, after Indian capital gains tax is paid or exempted.

There is no limit on the number of properties or the number of repatriations — only the USD 1 million per year ceiling. For a Bina plot that sells for, say, ₹1.5 Crore (roughly USD 180,000), you are well within the annual limit and can repatriate the entire proceeds in one financial year.

Step 1 — Sell and register the sale deed. The buyer pays you by banking channel (cheque/DD/RTGS to your NRO or NRE account). Cash is illegal and breaks the repatriation chain permanently.

Step 2 — Pay capital gains tax. Land held for more than 2 years qualifies as Long-Term Capital Gains (LTCG), taxed at 20% with indexation benefit. You can also invest the gain under Section 54EC (in REC/NHAI bonds, ₹50 lakh cap) or Section 54F (in another residential property) to claim exemption. Your CA in India computes this and you pay the tax or claims the exemption before applying to repatriate.

Step 3 — Obtain Form 15CA and 15CB. These are the two documents your bank needs before sending money abroad:

• Form 15CB is a certificate from a chartered accountant certifying the tax has been paid and the repatriation is compliant.
• Form 15CA is a declaration you (or your CA) file online on the Income Tax portal; the CBDT system generates an acknowledgement number.

Step 4 — Submit to your bank. Your NRE/NRO bank branch in India processes the outward remittance using the 15CA/15CB and the sale deed. The money reaches your foreign account in 3–7 working days.

Bina Estates works with CA firms in Sagar/Bhopal who handle 15CA/15CB for NRI clients routinely. Contact us at +91 99868 88311 for a referral.

Mistake 1 — Cash in the original purchase. If you (or a relative) bought the plot partly in cash years ago, the bank cannot trace the inward remittance, and repatriation becomes nearly impossible. Always buy through banking channels.

Mistake 2 — Not paying capital gains tax before applying. The bank will not remit if the CA cannot certify tax compliance. Pay the tax (or claim the exemption) first, then apply.

Mistake 3 — Selling before 2 years. Short-term gains (held under 2 years) are taxed at your slab rate (30%+ for high earners) with no indexation. Hold land for more than 2 years to qualify for the 20% LTCG rate with indexation.

Mistake 4 — Using a General Power of Attorney that was never adjudicated. If you bought through a GPA that was not properly stamped and registered, the sale deed itself may be challenged, which complicates the repatriation chain. Always use a registered sale deed in your name.

Bina Estates guides NRI clients through this entire flow — from buying clean-titled land to structuring the eventual sale for clean repatriation. The goal is simple: when you are ready to sell, the money moves out without friction.