Can NRO account send money abroad?

Yes, an NRO (Non-Resident Ordinary) account can send money abroad, but there are specific rules and documentation requirements. Here are the main points:

1. Annual transfer limit: An NRI may transfer up to USD 1 million per financial year from the balance in the NRO account.
2. Source of funds: The source of funds in the NRO account determines the amount that can be transferred. The funds generally include income earned in India such as rents, dividends, pensions and interest.
3. Authorizations required: Transfers from an NRO account need to be approved by the Reserve Bank of India (RBI).
4. Documentation:
1. Form 15CA and 15CB: These forms are required for the remittance process. Form 15CA is a declaration of remittance and Form 15CB is a certificate from a chartered accountant certifying the tax compliance of the funds remitted.
2. Bank Forms: Special forms provided by the bank to process the transfer.
3. Source of Funds Proof: Documents showing the origin of funds in the NRO account (e.g. rental agreements, dividend statements, etc.).
5. Passport and visa: copies to verify identity.
6. Tax returns: Current Indian income tax returns may be required to ensure tax compliance.
7. Ensure that all applicable taxes on the funds have been paid or deducted at source.

If you comply with these rules and provide the required documents, NRIs can remit money abroad from their NRO accounts within the specified limits.