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Budget 2026: Highlights for NRIs on investment, property, disclosures
Listen to our latest podcast analyzing Union Budget 2026 updates for NRIs, including TCS on remittances, PAN-based TDS for property sales, investment limits and foreign asset disclosures.
In this post‑Budget edition of the EY India Insights podcast, Amarpal S. Chadha, Partner, People Advisory Services - Tax, EY India, analyses the Union Budget 2026 announcements related to NRIs and persons resident outside India. The discussion covers major updates including reduced Tax Collected at Source (TCS) on overseas remittances, simplified Tax Deducted at Source (TDS) procedures for property transactions, higher investment limits in Indian listed companies, the newly introduced Foreign Assets for Small Taxpayers Disclosure Scheme, and the enhanced duty‑free baggage allowances.
Key takeaways
Budget 2026 announces reduction of TCS on overseas remittances to a flat 2%, which lowers the upfront tax burden and improves cash flow.
Investment caps under the Portfolio Investment Scheme have increased from 5% to 10% in listed Indian companies and the overall cap from 10% to 24%.
Property transactions between residents and non‑resident sellers are simpler with PAN‑based TDS, removing the need for TAN.
The Foreign Assets for Small Taxpayers Disclosure Scheme 2026 is a one-time window for individuals to declare undisclosed foreign assets.
Budget 2026 has introduced a very significant one-time opportunity for individuals with undisclosed foreign income or assets. Any person who is or was a resident (under the Income tax Act) in India in the relevant period and who satisfies the conditions specified in the Scheme may utilize the benefit. This includes persons who are presently non-resident or not ordinary resident but were resident in India when the undisclosed foreign income accrued, or when the foreign asset was acquired.
Amarpal S. Chadha
Partner, People Advisory Services - Tax, EY India
For your convenience, a full text transcript of this podcast is available on the link below:
Pallavi
Welcome to a new post-Budget episode of the Budget Insights series on EY India Insights. In this episode, we discuss key Union Budget updates for NRIs, including changes in TCS, TDS, overseas remittances, and investment opportunities in India.
A very warm welcome to you and thank you for joining the podcast today.
Amarpal S Chadha
Thank you very much. Pleasure to be here.
Pallavi
To begin with, what are the aspects which individuals should be aware of under Budget 2026, specifically with the changes in TCS for overseas remittances? Additionally, what does it change for persons resident outside India with respect to their expanded investment limits in Indian equity markets?
Amarpal S Chadha
Thanks, Pallavi. Budget 2026 brings welcome relief by way of reduction in TCS rates on overseas remittance, such as spending on overseas tour packages, education and medical purposes, to a flat 2%, which is down from the earlier 5% or even 20% in some cases. This significantly lowers the upfront tax burden and improves the cash flow.
Another key highlight of the Budget 2026 is the liberalization of the equity investment limits for persons resident outside India under Portfolio Investment Scheme. Under this, now, the individual limit has been increased from 5% to 10% in the listed Indian companies, with the overall cap being increased from 10% to 24%. This further enhances the equity participation by persons resident outside India in the Indian listed companies.
Pallavi
How does the Budget 2026 simplify TDS procedures in a property transaction between resident buyer and non-resident seller?
Amarpal S Chadha
This is an important one. Until now, when resident buyers were purchasing immovable property from a nonresident seller, the resident buyer was required to obtain a TAN, which is the tax deduction account number, solely to comply with the TDS obligations under the Budget 2026. This requirement has been removed and replaced with a PAN-based TDS process, which will now enable faster property transactions similar to a resident-to-resident transaction.
Pallavi
Budget 2026 has also introduced the Foreign Assets for Small Taxpayers Disclosure Scheme 2026, providing a one-time opportunity to disclose foreign assets/income. So, could you please elaborate on the proposed scheme, including people who can take advantage of the scheme ?
Amarpal S Chadha
Budget 2026 has introduced a very significant one-time opportunity for individuals with undisclosed foreign income or assets to regularize the non-compliance through the Foreign Assets Of Small Taxpayers Disclosure Scheme 2026, in short, is being referred to as Fast DS. Once the scheme is notified, it will be a six-month window facilitating voluntary compliance and resolving past nondisclosures, and it will provide immunity from penalty and prosecution.
Any person who is or was a resident in India in the relevant period and satisfies the conditions specified in the scheme may utilize the benefit. This will include persons who are presently nonresident or not ordinary resident but were resident in India when the undisclosed foreign income accrued, or when the foreign asset was acquired.
Pallavi
Lastly, Budget 2026 has increased the duty-free baggage allowance. Why should people returning to India be mindful of these changes?
Amarpal S Chadha
This one applies to all, to you and me, whoever travels overseas. So, Budget 2026 has brought some welcome news for travelers returning to India, mostly linking it to inflation. But among the other changes, it introduced a revised Baggage Rule, which has increased the duty-free allowance for different categories of passengers. Under the new provisions, the duty-free allowance has been revised from INR50,000 to INR75,000, and this is applicable for Indian residents returning from abroad, foreigners holding a valid visa rather than a tourist visa, and tourists of Indian origin. But one needs to remember that for tourists of foreign origin, the duty-free allowance is different, which was the earlier INR15,000 and which has been increased to INR25,000. This higher limit provides greater flexibility and hence critical for the people traveling to India. It is important for them to be aware of these baggage rules, to utilize the enhanced limits.
Pallavi
That brings us to the end of this episode. Thank you for joining this post-Budget episode of the Budget Insights series on EY India Insights.
Amarpal S Chadha
Thank you, Pallavi, for hosting me.
Pallavi
And thank you to all our listeners. We hope you found the discussion helpful. Stay tuned for more expert perspectives on budget developments. Until next time, this is Pallavi signing off.
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