UPDATE: India’s Finance Minister Nirmala Sitharaman has just unveiled the Union Budget 2026, bringing significant changes that will impact Non-Resident Indians (NRIs) immediately. This budget is designed to simplify investment processes and enhance engagement for the global Indian diaspora.
The new measures aim to address long-standing issues faced by NRIs, marking a vital shift in how India views its overseas citizens. This year’s budget emphasizes access, parity, and simplicity, rather than just high-profile giveaways.
One of the most crucial developments is the increase in equity investment limits for NRIs. Previously, individual NRI investors could hold only up to 5% of the paid-up capital of a listed Indian company. The budget now doubles this limit to 10%, while the overall overseas individual cap has been raised from 10% to 24%, pending approvals from shareholders and boards. This change signals a recognition of NRIs as essential stakeholders in India’s economic future, facilitating greater participation in sectors like banking, technology, and green energy.
Additionally, property transactions for NRIs are set to become significantly less cumbersome. Effective from October 2026, the requirement for resident buyers to obtain a Tax Deduction and Collection Account Number (TAN) when purchasing property from NRIs will be eliminated. Instead, buyers can use a Personal Account Number (PAN), streamlining compliance and reducing the paperwork burden that has long frustrated NRIs selling property in India.
The budget introduces a time-bound foreign asset disclosure scheme, allowing NRIs to voluntarily report previously under-reported assets without incurring penalties, fostering a sense of security for those with legacy holdings. This initiative acknowledges the complexities of cross-border lives and aims to ease compliance for NRIs who may have inadvertently overlooked various financial obligations.
Moreover, small NRI-run businesses will benefit from the exclusion of certain enterprises from the Minimum Alternate Tax (MAT). This adjustment promotes fairness in taxation and encourages formalization among small businesses, providing much-needed relief for NRIs operating in diverse sectors.
In a move to further alleviate compliance pressures, Budget 2026 extends income tax filing deadlines, offering NRIs more flexibility in managing their tax responsibilities across different jurisdictions. This change addresses the logistical challenges faced by NRIs, recognizing the multifaceted nature of their financial lives.
These measures collectively highlight a significant transformation in India’s approach to its diaspora, aiming to integrate NRIs more fully into its economic framework. With this budget, the Indian government is sending a clear message that engaging with India’s economy can now be a smoother, more rewarding experience for NRIs.
As the implications of India’s Budget 2026 unfold, it is evident that the government is committed to building stronger financial ties with its global citizens. This budget not only facilitates investment but also reinforces the cultural connection that NRIs maintain with India.
Stay tuned for further updates on how these changes will impact NRIs and the broader economic landscape.
