NRO Account Repatriation After Death: FEMA Rules for UK Families

Two Types of Indian Accounts, Two Different Rules

When a British citizen dies holding money in Indian bank accounts, the rules for moving that money to the UK depend entirely on the account type. Getting this wrong can freeze funds for months.

NRO (Non-Resident Ordinary) accounts hold income earned in India — rental income, local investments, pensions. Repatriation from an NRO account is capped at USD 1 million per financial year under the Foreign Exchange Management Act (FEMA). To move funds, you need two tax compliance documents on top of the standard bank paperwork.

NRE (Non-Resident External) and FCNR (Foreign Currency Non-Resident) accounts hold foreign earnings that were transferred into India. These balances are fully and freely repatriable — no cap, no special tax forms. You submit a Bank Request Form and Form A2 through the bank's international division.

The Form 15CA and 15CB Requirement for NRO Funds

Before an Indian bank will release NRO funds for international transfer, the executor or beneficiary must complete:

Form 15CA: An online tax declaration confirming all outstanding Indian income taxes on the deceased's assets have been settled. The executor files this directly.

Form 15CB: A certificate that must be completed and electronically signed by an active Indian Chartered Accountant. The CA verifies that the correct withholding tax (TDS) has been deducted and paid to the Indian Income Tax Department.

You cannot skip Form 15CB. The bank will reject the remittance application without it. Finding a CA willing to certify a deceased NRI's tax position can take time — start this as soon as you have the death certificate and bank statements.

Step-by-Step: Releasing NRO Funds

1. Obtain the apostilled Indian death certificate and UK grant of representation (probate)
2. Submit the death certificate to the bank along with a succession certificate or probate order
3. The bank converts the account from the deceased's name to the legal heir/executor
4. Engage an Indian Chartered Accountant to prepare and electronically file Form 15CB
5. File Form 15CA online through the Indian Income Tax e-filing portal
6. Submit Form A2 (remittance application) and the Bank Request Form to the bank
7. The bank processes the outward remittance to your UK account

The timing after probate is in hand depends on the bank, tax clearance, and estate documents; delays commonly arise from finding a CA, settling outstanding Indian taxes, and bank processing.

UK Inheritance Tax on Indian Assets

If the deceased was UK-domiciled, their Indian bank balances, property, and investments form part of their worldwide estate for UK Inheritance Tax purposes. Everything must be declared on HMRC Form IHT400.

Under the India-UK Double Taxation Avoidance Agreement:

• Indian real estate is taxable in India (Article 6) and subject to Indian capital gains tax if sold (Article 13)
• The UK grants a Foreign Tax Credit (Article 24) to prevent double taxation
• The UK grants a Foreign Tax Credit under Article 24 for qualifying Indian tax paid, subject to the treaty and the asset

Keep Form 15CB and the Indian bank's tax deduction certificates with the tax records and give them to the UK and Indian advisers handling the estate.

Indian Property After Death

Real estate adds another layer. If the deceased owned property in India, the transfer or sale process may require a succession or legal-heir document, depending on the asset and state. Obtain Indian legal advice before selling or transferring it.

Property sale proceeds have their own FEMA, bank, and Indian tax requirements; do not assume that the NRO account cap or Form 15CA/15CB process applies unchanged.

The complete emergency guide includes the full FEMA remittance workflow, Form 15CA/15CB instructions, and a HMRC-Indian tax coordination checklist.