Union Budget 2026 - Top 5 Impacts on Non-Resident Indians (NRIs)

The Union Budget 2026 has been unveiled, and it brings a wave of strategic shifts aimed at the global Indian diaspora. Finance Minister Nirmala Sitharaman has focused heavily on "Ease of Compliance," making it significantly simpler for NRIs to invest, manage property, and remit funds back home.

If you are living abroad but have financial roots in India, here is a comprehensive breakdown of how Budget 2026 affects your wallet and your investments.

1. Doubling the Investment Limit in Indian Equities

For years, NRIs were capped at a 5% individual limit for investing in the equity shares of a single listed Indian company. Budget 2026 has officially doubled this limit to 10%.

• The Impact: This move allows affluent NRIs and high-net-worth individuals (HNIs) to take more significant, concentrated positions in India’s growth story.
• Market Sentiment: By increasing the aggregate limit for all NRIs in a company to 24%, the government is signaling a desire for more stable, long-term "diaspora capital" in the stock market.

2. Simplification of Property Sales: The End of TAN Hassles

Selling a property in India while living abroad has historically been a paperwork nightmare. Previously, the resident buyer had to obtain a Tax Account Number (TAN) to deduct TDS (Tax Deducted at Source) on behalf of the NRI seller.

• The Change: From October 1, 2026, buyers can now deposit TDS using a PAN-based challan instead of a TAN.
• The Benefit: This eliminates a major hurdle for buyers, making NRI-owned properties more "marketable" and reducing transaction delays by weeks.

3. Sharp Reduction in TCS on Remittances (LRS)

Under the Liberalized Remittance Scheme (LRS), sending money abroad for family or travel often attracted high Tax Collected at Source (TCS). Budget 2026 has streamlined this.

• New Rate: TCS on overseas tour packages and remittances for education and medical treatment has been slashed to a flat 2%.

Why it matters: While TCS is eventually refundable or adjustable against tax liability, a high rate often blocked liquidity. The 2% rate ensures that your family in India pays less upfront when funding your education or visiting you abroad.

4. FAST-DS 2026: A One-Time Opportunity for Disclosure

The government introduced the Foreign Assets and Sourced Tax Disclosure Scheme (FAST-DS). This is a 6-month window for individuals (especially those who recently moved abroad or returned) to disclose minor overseas assets or bank accounts that were previously omitted.

• Immunity: Disclosing under this scheme provides immunity from the stringent penalties and prosecution associated with the Black Money Act.
• Target Audience: Perfect for students or young professionals who may have opened foreign bank accounts and forgotten to report them in Indian tax filings.

5. Tax Holiday for Global Talent & Experts

To encourage the "Brain Gain" of Indian experts back to the mainland, Budget 2026 offers a 5-year tax holiday on overseas income for specific NRI professionals visiting India for government-notified strategic projects.

• The Goal: You can now work on high-impact projects in India for short-to-medium durations without worrying about your global income being taxed in India due to "Residency Status" triggers.

Final Verdict: A Budget of Ease

Budget 2026 isn't just about numbers; it’s about removing the "friction" of being an NRI. Whether you are an investor looking at the Nifty 50 or a homeowner looking to liquidate your assets, the compliance burden has been significantly lightened.

Disclaimer: Tax laws can be complex. Always consult with a qualified Chartered Accountant (CA) or tax advisor before making financial decisions based on budget announcements.