The Union Budget 2026 has unveiled several landmark measures specifically designed to benefit Non-Resident Indians (NRIs), particularly those based in the UAE. These reforms aim to simplify investment, tax compliance, and financial transactions for overseas Indians.
The budget dramatically increases investment potential by raising the Portfolio Investment Scheme limits. Individual NRIs can now invest up to 10% (previously 5%) in listed Indian companies, with the overall foreign investment cap rising from 10% to 24%. This change provides more flexibility for long-term equity investments.
Taxpayers can now update income tax returns after reassessment by paying an additional 10% tax. The filing deadlines have been extended, with ITR-1 and ITR-2 filers having until July 31, and non-audit cases until August 31.
The government has significantly reduced Tax Collected at Source (TCS) rates:
Property sales by NRIs will become more straightforward, with tax deducted at source (TDS) now handled by the resident buyer, removing previous complex requirements.
A new scheme offers immunity from prosecution for NRIs holding non-immovable foreign assets under Rs2 million (approximately Dh80,000), encouraging voluntary compliance.
These reforms reflect the Indian government’s commitment to making financial processes more accessible and attractive for its global diaspora, particularly in key markets like the UAE.
