By S&S Co. Advocates & Solicitors · Published 17 October 2026 · Informational content, not legal advice: see our disclaimer
An NRI who inherits a flat or agricultural plot from a parent in India eventually wants to sell it and move the money to wherever they actually live, and discovers that this is not as simple as wiring funds the way one would from any ordinary bank account. Indian foreign exchange law treats repatriation of sale proceeds from inherited property as a distinct category, governed by RBI's rules on remittance of assets, with its own documentation requirements and its own ceiling on how much can leave the country in a given year without specific approval.
The facility that makes this possible is commonly called the USD 1 million scheme, and getting it right matters because a bank that is not satisfied with the paperwork will simply refuse to process the remittance, leaving an NRI with sale proceeds sitting in an Indian account they cannot move, sometimes for months while documentation gaps get sorted out.
What the Facility Actually Covers
RBI's framework allows an NRI or a person of Indian origin to remit up to USD 1 million out of balances in an NRO account, including sale proceeds of assets, in any given year, and this facility expressly extends to assets acquired by way of inheritance, beyond property the NRI purchased themselves while resident or non-resident. This makes the scheme the primary route for moving money out of India when a parent's property, or other inherited asset, is eventually sold.
The cap applies across all purposes drawn from the NRO account, not separately for each source of funds, so an NRI who has already remitted a portion of the limit for other purposes in the same year has that much less headroom left for the inherited-property proceeds. There is no provision to carry forward an unused balance into the following year if the full amount is not remitted, which means an NRI planning a large sale should think about timing before signing the sale deed, not after the money has already landed in the NRO account.
The Documents a Bank Will Actually Ask For
Before releasing funds under this facility, an authorised dealer bank will generally require documentary evidence establishing that the property was indeed inherited, such as a will, a succession certificate, legal heir certificate, or probate, depending on how the inheritance actually passed, along with the sale deed for the property being sold and proof that any applicable capital gains tax has been dealt with.
The remittance itself requires Form 15CA, a declaration regarding the nature and tax status of the remittance filed through the income tax department's portal, and in most cases Form 15CB, a certificate from a chartered accountant confirming the tax position, in the prescribed formats the Central Board of Direct Taxes requires. An NRI who sells the property but has not settled the resulting capital gains tax liability in India should expect the bank to insist on this being resolved, or at minimum clearly accounted for, before processing the remittance, since the bank itself carries compliance exposure if it moves money out without this being in order.
Property Bought With Rupee Funds Versus Foreign Currency
This USD 1 million facility is the relevant route where the property, or the funds now sitting in the NRO account, trace back to a purchase made with rupee resources, such as property bought by the person while they were a resident Indian, or acquired by inheritance from someone who held it in that way. A separate, generally more generous rule applies where a property was originally purchased using foreign currency remitted from abroad or funds from an NRE or FCNR account, since in that case the sale proceeds can often be repatriated more fully, reflecting the fact that foreign currency effectively funded the acquisition in the first place. An NRI should establish which category their inherited property falls into before assuming the standard cap is the only ceiling that applies to their situation, because getting this wrong can mean leaving money unnecessarily trapped in an NRO account for an entire additional year.
For inherited property, this distinction can matter if the deceased relative had themselves acquired the asset using foreign remittances during their own lifetime as an NRI, rather than with ordinary rupee income, so it is worth establishing exactly how the original acquisition was funded before assuming the standard USD 1 million rupee-funded route is the only option available.
When Approval Beyond the Cap Is Needed
Where the sale proceeds of an inherited property genuinely exceed what the USD 1 million facility allows to be remitted in a single year, the excess cannot simply be sent through a second bank or under a different label. The NRI has to apply through the authorised dealer bank for the Reserve Bank's specific approval to remit the additional amount, a process that takes considerably longer than the standard facility and requires the bank itself to forward the application with its own assessment attached.
In practice, this scenario is less common for a single inherited residential property than it is for larger holdings, agricultural land with significant value in a growing urban periphery, or where several properties are sold in the same year and the combined proceeds push past the ceiling. Planning the timing of sales across more than one financial year, where that is commercially workable, is often a simpler way to stay within the standard facility than pursuing case-by-case RBI approval for every rupee above the cap.
Common Mistakes That Delay the Remittance
The most frequent reason a remittance stalls is incomplete succession documentation, particularly where a will exists but has not been probated in a jurisdiction where probate is required, or where multiple legal heirs have not formally recorded how they have divided an inherited property before one of them attempts to remit their share of the sale proceeds alone. A bank faced with an incomplete chain of title from the deceased to the person seeking to remit funds will generally pause the transaction until that chain is clearly documented.
A second common problem is sequencing: some NRIs sell the property, deposit proceeds in an NRO account, and only then start assembling the tax clearance and Form 15CB paperwork, treating the remittance as a separate, later step. Starting the capital gains tax computation and the chartered accountant's certification process alongside the sale itself, rather than after money has already changed hands, generally shortens the overall timeline considerably and avoids the funds sitting idle in India for longer than necessary. A third, less obvious problem shows up where the inherited property was held jointly by several siblings and one of them lives outside India while the others remain resident. Banks sometimes ask for a clear record of how the sale proceeds were actually divided among the heirs before releasing even the NRI sibling's agreed share, so getting that division documented in writing at the time of sale, rather than relying on an informal family understanding, avoids a second round of paperwork later.
Frequently Asked Questions
How much money can an NRI repatriate from the sale of inherited property in India?
Up to USD 1 million in a year from NRO account balances, including sale proceeds of inherited assets, under RBI's facility for NRIs and persons of Indian origin. This cap applies across all purposes drawn from the NRO account in that year, not separately for the inherited-property proceeds alone.
What documents does a bank need to process this kind of remittance?
Proof of inheritance such as a will, succession certificate, legal heir certificate or probate, the sale deed for the property, evidence that capital gains tax has been addressed, and the tax forms 15CA and, in most cases, 15CB certified by a chartered accountant confirming the remittance's tax status.
Can I carry forward unused repatriation limit to the next year?
No. If the full USD 1 million is not remitted in a given year, the unused portion cannot be carried forward. Each year's facility is assessed on its own, so an NRI planning to sell multiple properties should consider timing sales across different years if that is workable.
What if the sale proceeds exceed the USD 1 million limit?
The excess amount needs the Reserve Bank's specific approval, applied for through the authorised dealer bank, which takes longer than the standard facility. For a single inherited property this is uncommon, but it arises more often with larger holdings or multiple properties sold in the same year.
References & Further Reading
The provisions and rulings below were relied on for this guide. The position can change with amendments and later decisions, so check the current text and the latest case law before acting on any of it.
- Foreign Exchange Management Act, 1999 and RBI's Master Direction on remittance of assets (USD 1 million facility for NRIs/PIOs from NRO account balances, including sale proceeds of inherited assets)
- RBI guidelines on repatriation of sale proceeds of immovable property (distinct, generally fuller repatriation rights where the property was acquired using foreign currency or NRE/FCNR funds, as opposed to rupee resources)
- Income Tax Rules, Form 15CA and Form 15CB (declaration and chartered accountant certification required before remitting funds abroad)