Getting Your Money Out: Repatriating Property Sale Proceeds from India to Canada

Most NRI property guides stop at the sale. The cheque clears in Mumbai, the guide ends, and everyone assumes the rest is a bank formality. It isn't. Moving that money to Canada runs on an entirely separate rulebook, and the people who get caught out are almost never the ones who did something wrong at the sale — they're the ones who never planned the exit.

This guide covers the part that actually strands money: how much you can send, which account it has to leave from, and the two forms without which your bank simply will not process the transfer.

The USD 1 Million Rule — And What It Actually Limits

Under the Reserve Bank of India's remittance scheme, an NRI may repatriate up to USD 1 million per financial year from the balances in an NRO account, including proceeds from the sale of immovable property. The financial year runs April to March, not January to December — a distinction that matters if you're timing a large sale.

Two things people commonly get wrong about this ceiling. First, it is a per-person limit, not per property or per transaction. If you and your spouse are joint owners, each of you has a separate limit, which effectively doubles the annual capacity for a jointly held asset. Second, the limit applies to the NRO route specifically. Funds already sitting in an NRE account are freely repatriable without counting against it.

Full current wording sits in the RBI's own Master Direction on Remittance of Assets. Rules here are revised periodically — treat any figure you read anywhere, including this page, as a starting point to confirm rather than a settled fact.

NRE or NRO: The Distinction That Decides Everything

This is the single most consequential decision, and it's made years before the sale — at the moment you paid for the property.

Here's the rule that catches people: if you originally bought the property using funds remitted from abroad through banking channels, the sale proceeds of up to two residential properties can be credited straight to your NRE account and repatriated without touching the USD 1 million ceiling. If you bought using rupee funds, or through an NRO account, or you've already used that two-property allowance, the proceeds go to NRO and the ceiling applies.

The payment trail you created when buying determines the exit route available when selling. This is the strongest practical argument for paying through clean banking channels from day one.

Form 15CA and Form 15CB: The Gatekeepers

No Indian bank will remit funds abroad from an NRO account without these two documents. They exist so the tax department can confirm tax was paid before money leaves the country.

• Form 15CB is a certificate from a practising Chartered Accountant confirming the nature of the remittance, the tax deducted, and the applicable treaty position. Your CA files it.
• Form 15CA is your own declaration, submitted on the income tax e-filing portal, referencing the 15CB acknowledgement number.
• Order matters: 15CB is filed first, then 15CA quotes it. Attempting them the other way round is the most common cause of a rejected submission.

Budget genuine time for this. Between arranging the CA, obtaining the certificate, filing, and the bank's own compliance review, two to four weeks is realistic. People who plan for two days are the ones who end up calling the branch daily.

Tax First, Transfer Second

Repatriation does not settle your tax position; it assumes you already have. When a buyer purchases from an NRI, TDS is deducted at source on the full sale value, not the gain — unless you obtained a lower deduction certificate in advance. Recovering the excess means filing an Indian return and waiting for a refund.

Cross-border tax clarity: Under the Canada-India DTAA, you claim the Federal Foreign Tax Credit (Form T2209) for taxes paid in India to prevent double taxation when declaring the sale on your Canadian tax return. Your entire tax exposure sits on the Indian side. That is a genuine structural advantage over NRIs remitting to the UK, the US or Australia — but it does not reduce what India is owed.

Four Mistakes That Strand Money

• Selling in March. A sale completing near the financial year end leaves no room to use the current year's USD 1 million limit before it resets. Selling in April gives you a full year of headroom.
• Assuming joint ownership is automatic. Both owners need their own NRO accounts and their own 15CA/15CB filings to use both limits.
• No lower deduction certificate. Skipping it means excess TDS locked with the tax department until a refund is processed — often the better part of a year.
• A muddled payment trail. If you cannot evidence how the original purchase was funded, the NRE route closes and you fall back to the capped NRO route.

This article explains the mechanism, not your filing position. RBI limits, forms and treaty provisions change. Confirm your specific situation with a CA experienced in NRI remittances before you commit to a timeline.