Union Budget 2026 Brings Five Major Reforms for NRIs: From Overseas Asset Disclosure to Tax Relief

The Union Budget 2026 brings some major changes in how India works with Non-Resident Indians (NRIs) and overseas Indians. The following are the five major tax changes:

1. Easier Property Transactions for NRIs

Earlier, if a resident individual bought a property from an NRI, they had to apply for a Tax Deduction and Collection Account Number (TAN). This extra step often caused delays and paperwork hassles. However, now, after Budget 2026, a resident individual does not require a TAN for this. Residents can simply use their PAN to deduct and deposit the TDS.

2. Foreign Asset Disclosure Window

The Budget 2026 has launched a one-time, six-month window for NRIs and returning professionals to report any previously undisclosed overseas assets. If they disclose their assets during the specified period, they can avoid full penalties under the Black Money Act.

3. Simpler Tax System for NRIs

The Budget 2026 also simplifies the tax rules for Non-Resident Indians (NRIs). It merges multiple existing provisions into a single framework. However, tax rates remain the same, but the clearer rules reduce confusion and provide more certainty.

4. Higher Investment Limits for Overseas Investors

The 2026 budget makes it easier for Persons Resident Outside India (PROIs). Individual investment limits under the Portfolio Investment Scheme (PIS) have been doubled to 10% from 5% of a company’s paid-up capital. The total limit for all PROIs has also increased to 24% from 10%, allowing more foreign participation in Indian equity markets.

5. Tax Benefits for Qualified Returning NRIs

If someone was a Non-Resident Indian (NRI) for the past five years and then returns to India, the income they earn from abroad during the first five years after coming back will not be taxed, provided they work in certain government-approved sectors under the specified scheme.