Learn to Repatriate RSU Sale Proceeds to India

You sold your RSUs and the proceeds are sitting in your US brokerage account. Here's how to move them to India, what FEMA rules apply, and what compliance you need if you ever want the money back abroad.

Step 1: Understand the FEMA rules for NRI inward remittances

The first thing to be clear on: this transfer is an inward remittance by an NRI of their own foreign earnings. FEMA treats this very differently from an Indian resident sending money abroad.

Why the $250,000 LRS limit does not apply to you

The Liberalised Remittance Scheme is an outward remittance rule. It allows Indian residents to send up to USD 250,000 outside India per financial year for permitted purposes. Since you are an NRI, not an Indian resident, LRS does not govern this transaction.

When you wire your RSU proceeds from your US brokerage to your Indian bank account, you are repatriating your own overseas earnings to India. FEMA places no cap on this amount.

What FEMA does require

Two requirements apply regardless of which account you choose.

The money must come through official banking channels. A SWIFT wire from your US brokerage or US bank meets this requirement. Cash transfers or informal channels do not.

The funds must be credited to an NRO or NRE account. These are the two accounts NRIs use to hold money in India. Crediting inward foreign remittances to a regular resident savings account is a FEMA violation. If your India savings account hasn't been converted to NRO status since you became an NRI, do that first.

For the full framework of what FEMA allows NRIs to do with assets and transfers across borders, see our guide on FEMA rules for non-resident Indians.

Step 2: Choose the right account for your RSU proceeds

This choice affects every future decision about the money. Pick the wrong one and reversing it costs paperwork and time.

When NRO makes sense

NRO is the right choice if you plan to use or invest the RSU proceeds in India and don't expect to move the money abroad again. Property purchase, family expenses, rupee fixed deposits, or building a corpus for when you eventually return to India all point to NRO.

The trade-off: any time you want to wire money out of your NRO account to a foreign bank, you will need to file Form 15CA/15CB and stay within the USD 1 million annual repatriation cap.

When NRE makes sense

NRE is the better choice if there's any chance you'll need the money outside India again. Funds in an NRE account are fully repatriable at any time, with no documentation required and no annual limit. You can wire the money back to the US whenever you need it.

The tax-free interest on NRE accounts is an added benefit for larger balances.

If you're on an H1B and uncertain about your long-term plans, NRE preserves flexibility. When in doubt, default to NRE. Converting NRO to NRE later requires the same 15CA/15CB paperwork as a full outward repatriation, which defeats the purpose of trying to simplify things.

Step 3: How to wire RSU proceeds to India from your US brokerage

Once you've chosen your account, the transfer is straightforward. You need four pieces of information before you log in to your brokerage.

• Your Indian bank's SWIFT/BIC code (for example, HDFCINBB for HDFC Bank, ICICINBBCTS for ICICI)
• Your NRO or NRE account number
• The IFSC code for your specific branch
• A purpose note (most brokerages ask for a brief description; "transfer to own NRE account" is standard)

How major US brokerages handle international wires

Fidelity supports international SWIFT wires through its online portal. The fee is typically around $15 per transfer. Find it under "Transfer Money" then "Wire Money."

Charles Schwab offers free international wires for most brokerage accounts. You can save beneficiary details for repeat transfers, which saves time if you wire regularly.

E*TRADE (now Morgan Stanley) supports international wires, with fees that vary depending on your account type. Check the fee schedule before initiating.

Robinhood does not support direct international wire transfers. If your RSU proceeds are in Robinhood, first move the funds to a US bank such as Chase or Bank of America, then initiate the international SWIFT wire from the bank.

Example: Rahul holds $30,000 from selling Google RSUs in his Fidelity account. He logs in, navigates to international wire transfers, and enters his HDFC NRE account details: SWIFT code HDFCINBB, account number, IFSC code HDFC0001234, and the note "transfer to own NRE account." He confirms the $15 fee. The wire arrives in his NRE account in 3 business days.

Processing time for US-to-India wires: 2-5 business days, depending on the bank combination.

Step 4: What happens when the money reaches your Indian bank

When the SWIFT wire arrives, your Indian bank credits it to your NRO or NRE account. The bank handles the FEMA purpose code classification on their end. You don't need to specify these codes yourself.

Your bank may ask for a source of funds letter before processing the credit. A brief written note explaining "these funds are proceeds from the sale of RSUs granted by [Employer], a US-incorporated company" is usually enough. Keep a copy of your RSU sale confirmation from your US brokerage on hand in case the bank asks for supporting documentation.

The credit itself is straightforward for NRE accounts. NRO accounts may have slightly more documentation steps at certain banks, but nothing complex for a standard inward wire.

One point worth being clear on: the tax event for your RSU proceeds happened before this transfer. US taxes were settled at vesting, when the fair market value of the shares was treated as ordinary income, and again at sale, when capital gains tax applied to any appreciation. What arrives in your Indian account is your post-tax USD amount. For NRIs, RSU vesting and sale income from a US employer is not taxable in India, since it's income earned outside India by a non-resident. If you want a full breakdown of how RSU taxation works across both the US and India, that guide covers the complete dual-country picture.

Step 5: 15CA/15CB for RSU repatriation from NRO back abroad

This step applies only if you later decide to send money from your NRO account to an overseas bank account. If you chose NRE, you can skip this section entirely. NRE funds move abroad freely at any time with no documentation.

What triggers the 15CA/15CB requirement

Whenever you want to repatriate funds from your NRO account to a foreign bank, your Indian bank will ask for Form 15CA and Form 15CB. The bank will not release the outward transfer without these on file.

The forms are also required when you move money from NRO to NRE within India, before the NRE funds then go abroad.

What each form involves

Form 15CB is a certificate issued by a Chartered Accountant. The CA verifies that the source of the funds is legitimate, that applicable Indian taxes have been paid or provided for, and that the remittance complies with the Income Tax Act. Form 15CB is required when your aggregate remittance from NRO in a financial year exceeds Rs. 5 lakh. Below that threshold, only Form 15CA Part A is needed and no CA certificate is required.

To issue Form 15CB, your CA will typically ask for: your NRO account statement for the year, RSU sale confirmations from your US brokerage, your US tax return showing taxes paid on the proceeds, and details of any other amounts credited to the NRO account during the year.

Form 15CA (Part C) is an online self-declaration that you file on the Income Tax India portal. You file it after your CA issues Form 15CB, referencing the certificate number. Submit both forms before asking your bank to process the transfer.

For a step-by-step guide on filing both forms and the documents required at each stage, see our guide on Form 15CA and 15CB.

The USD 1 million annual limit on NRO repatriation

The RBI's FAQ on NRI accounts confirms that NRIs can repatriate up to USD 1 million from their NRO accounts per financial year (April to March), net of applicable taxes. Above this limit, prior RBI approval is required.

This cap covers all outward repatriation from NRO combined, not just RSU proceeds. If you have other amounts in the same NRO account from rental income, salary, or earlier remittances, those count toward the same USD 1 million.

The financial year runs April to March, not January to December. The limit resets each April 1. If your RSU proceeds are large, consider splitting the repatriation across two financial years rather than applying for RBI approval above the cap.

Common mistakes when repatriating RSU proceeds to India

Choosing NRO when NRE was the right call. Once money is in NRO, you cannot freely move it to NRE. Converting NRO to NRE requires 15CA/15CB, the same paperwork as a full outward repatriation. The decision is not easy to undo. When in doubt, choose NRE at the time of the initial wire.

Wiring to a resident savings account. If your India savings account was opened before you became an NRI and hasn't been converted to NRO status, crediting foreign remittances to it is a FEMA violation. Convert the account to NRO first, or open a new NRE account.

Not keeping sale documentation. Your CA needs your RSU vesting statements and sale confirmations to issue Form 15CB. Download these from your US brokerage at the time of sale and store them separately. Banks also ask for these during the inward remittance process at some institutions.

Assuming LRS applies. Some NRIs are told by well-meaning friends or colleagues that they can only send $250,000 to India per year. For the inward transfer described in this guide, that's incorrect. LRS limits apply to Indian residents sending money out. An NRI bringing in their own foreign earnings operates under a different FEMA provision with no cap.

Forgetting the April 1 reset on the USD 1 million NRO cap. The cap runs April to March. If you repatriate a large amount in late March and need to repatriate more, the limit resets on April 1. Factor this into timing decisions for large outward transfers.

Conclusion

The RSU repatriation India process is more straightforward than most NRIs expect. Wire from your US brokerage to your NRO or NRE account, keep your sale records, and know that LRS does not limit this transfer.

The decision that shapes everything else is NRO vs NRE. If there's any chance you'll want the money back abroad, choose NRE upfront. It's fully repatriable with no cap and no documentation.

If you go with NRO, plan around the Rs. 5 lakh threshold for Form 15CB and the USD 1 million annual cap before you initiate any outward transfer from NRO.