Archive · 16 Sep 2026
NRO to NRE Transfers: Tax Rules and Repatriation Limits
NRO accounts are used for money earned in India, such as rent, pensions, dividends, and interest.
NRE accounts are mainly used for foreign money brought into India.
An NRI is allowed to move money from an NRO account to an NRE account.
However, the transfer must follow Indian tax and foreign-exchange rules.
Interest on NRO accounts can have tax deducted, while interest on NRE accounts is tax-free in India.
Money in an NRE account can generally be sent abroad without a limit.
Money sent abroad from an NRO account is usually limited to $1 million per financial year.
The person may also need online declarations, a Chartered Accountant’s certificate, and documents showing where the money came from.
NRIs can transfer funds from NRO accounts to NRE accounts, subject to tax and foreign-exchange rules.
Interest earned on NRO deposits is subject to Indian tax deduction at source, while NRE interest is tax-exempt in India.
NRE funds are generally fully repatriable, but NRO balances have a $1 million annual repatriation limit.
The $1 million limit applies across all NRO accounts and covers capital income such as property or investment-sale proceeds.
NRIs may need Forms 145 and 146, source-of-funds evidence, and Foreign Exchange Management Act compliance documents.
- Who
- Non-Resident Indians transferring funds from NRO accounts.
- What
- A regulated transfer of funds from NRO accounts to NRE accounts, or remittance of NRO funds abroad.
- When
- Transfers and repatriations are subject to rules applying during each financial year.
- Where
- Between Indian NRO and NRE accounts, with some funds potentially remitted outside India.
- Why
- To move Indian-source funds into NRE accounts for overseas investments or international expenses, or to send funds abroad.
- NRO account purpose
- Holds income generated in India, including rent, pensions, dividends, salary, and interest.
- NRE account purpose
- Holds foreign earnings brought into India.
- NRO interest tax
- Interest is subject to tax deduction at source in India.
- NRE interest tax
- Interest is exempt from income tax in India, according to State Bank of India information.
- NRO repatriation limit
- Up to $1 million per financial year, subject to applicable conditions and tax compliance.
- Required documentation
- Possible documents include Form 145, Form 146, source-of-funds proof, and a Foreign Exchange Management Act compliance declaration.
- Form 145 submission
- The form is completed online through the Income Tax India website and submitted to the bank with supporting documents.