What are the FEMA Rules for Repatriation?

The Foreign Exchange Management Act has some rules for the NRI repatriation that you must know before transferring your funds. 

• If you transfer funds from India, then you need to pay the taxes on the repatriated funds. 
• You can transfer funds your annual income of a year in a financial year transfer income in upcoming years. 
• Funds in your NRO account should have legitimate dues that are receivable. Make sure that you have not only borrowed and transferred funds in your NRO account. 
• The annual transfer limit in a financial year will be up to 1 million USD, and cannot be carried to the next financial year if not used. 
• If you have an NRE account, then there is no limit on transferring funds. 
• You can only transfer the funds from the sale of a maximum of two properties in India. 

Here are some of the objectives of the FEMA  Act, 1999 regulations: 

1. The FEMA  Act supports the growth of India's forex market by managing foreign trades and payments. 
2. Through the FEMA  Act, foreign exchange transactions are divided into capital and current account transactions. 
3. It tracks the transactions of an individual's assets, goods, and services, which maintains the balance of payments. 
4. The FEMA  Act covers the investments and transition, including foreign and domestic. 
5. It reflects the health of the economy and trade, and income flows. 
6. The FEMA  Act helps to track the movements of capital in and out through investments and other activities. 

Given below are some of the key features of the Foreign Exchange Management Act, 1999: 

1. The central government can control the regulation of payments to and from people outside India. 
2. For the financial transactions that include foreign securities or foreign exchanges, you need to get FEMA's approval from an authorized person. 
3. To protect the public interests, the government can limit the foreign exchange deals.
4. RBI has the authority to restrict capital account transactions, even if it was done by an authorized person. 
5. For individuals living outside India need someone to handle foreign exchange and securities, while people who are living in Indian can handle it on their own.