When are NRI investments considered repatriable?
If the original purchase is made on a repatriable basis and such investment are made out of funds from NRE/FCNR account or by means of remittance from abroad, then the sale proceeds, net of taxes, can be repatriated. For investments made on a repatriable basis, an NRI is required to open an NRE account with the designated bank as the repatriable amount will be credited to his NRE account. In case investments are made on a non-repatriation basis, sale proceeds can be credited only to the NRO account held with the designated bank branch. Therefore, an NRI interested in making investments on both repatriation and non-repatriation basis will have to open an NRE as well as an NRO account with the designated bank branch .
If the original purchase of investments is made on a repatriable basis i.e. such investment are made out of funds out of remittances from abroad or from NRE/FCNR accounts in India, then the sale proceeds, net of taxes, can be repatriated abroad. For investments made on repatriable basis, an NRI is required to open an NRE account with the designated bank, as the repatriable amount will be credited to an NRE account only. In case investments are made on a non-repatriation basis, sale proceeds of the same can be credited only to the NRO account held with the designated bank branch. Therefore, an NRI interested in making investments on both repatriation and non-repatriation basis will have to open an NRE as well as an NRO account with a bank in India.
