How to Transfer Money from Your NRO Account to Canada: The Complete Repatriation Process

A step-by-step guide for NRIs in Canada on moving funds from their Indian NRO account — including rental income, dividends, and property proceeds — to Canada through the NRE route, covering FEMA limits and Form 15CA/15CB compliance.

Summary

NRO accounts hold India-sourced income. Repatriating that money to Canada requires paying applicable Indian taxes, filing compliance forms, and following RBI's USD $1 million annual limit. The NRO to NRE route makes funds freely repatriable once taxes are cleared.

Annual Repatriation Limit

RBI permits NRIs to repatriate up to USD $1 million per financial year (April–March) from their NRO account. This covers all sources — rental income, dividends, matured fixed deposits, and property proceeds. There is no limit on repatriation from NRE accounts.

Step-by-Step Process

  1. Ensure Indian taxes have been paid or deducted at source on the amount to be repatriated.
  2. Engage a CA in India to issue Form 15CB certifying tax compliance.
  3. File Form 15CA online at incometax.gov.in using the 15CB details.
  4. Submit both forms to your Indian bank with a remittance application.
  5. Specify the correct RBI Purpose Code (P0008 for NRO repatriation).
  6. The bank processes the wire transfer to your Canadian bank account.

NRO to NRE Transfer

You can move funds from NRO to NRE within India rather than directly to Canada. Benefits: funds in NRE are tax-free in India on subsequent interest earnings and are freely repatriable without further compliance. The same tax compliance (15CB/15CA) is required for the NRO-to-NRE transfer.

Common Mistakes Indians Make

  • Attempting to repatriate without Form 15CA/15CB — banks will reject the transfer.
  • Using an incorrect RBI purpose code, causing delays or compliance flags.
  • Exceeding the USD $1 million annual limit and triggering RBI scrutiny.
  • Not retaining copies of all forms for Canadian tax reporting — the CRA requires you to declare foreign income.

Official Resources

  • RBI Master Direction on Remittances: rbi.org.in
  • Income Tax India Form 15CA: incometax.gov.in
  • FEMA Regulations: fema.rbi.org.in