India Budget 2026: 6 Key Changes for NRIs in the UAE
ubai-based NRIs often stay financially connected to India—whether it’s through investing, selling property, sending money for education, or planning overseas travel. India’s Union Budget 2026 may not be a major overhaul, but it introduces practical updates that reduce friction in everyday money matters.
1) Lower upfront tax on travel and overseas remittances
International spending from India becomes more affordable as the upfront tax collected on certain foreign payments is reduced to a flat 2%. This applies to overseas tour packages, remittances for education abroad, and medical treatment overseas—helping families manage expenses with less money blocked upfront.
2) Easier property sales for NRIs
Selling property in India should become smoother from October 1, 2026, as buyers will no longer need to apply for a separate TAN to deduct tax when purchasing from an NRI. With PAN now being sufficient, the process becomes simpler and faster, making NRI-owned properties easier to sell.
3) One-time chance to disclose old overseas assets
A new one-time disclosure option gives NRIs an opportunity to declare previously missed overseas assets such as old bank accounts, insurance policies, or company shares. This allows individuals to regularise past omissions legally and move forward without heavy penalties or legal stress.
4) Higher direct stock investment limit
NRIs investing directly in Indian listed companies through the Portfolio Investment Scheme can now hold up to 10% in a single company, compared to the earlier 5% limit. This offers more flexibility for long-term investors who prefer building stronger positions in selected stocks.
5) Relief for certain cross-border business activities
Budget 2026 removes minimum tax for specific businesses taxed under simplified fixed-rate rules. This is expected to reduce complexity for eligible NRI-linked operations, including certain services connected to cruise businesses and electronics manufacturing setups.
6) Tax clarity for UAE companies supplying to Indian manufacturing
Foreign firms, including UAE-based suppliers, providing machinery and tools to India’s electronics manufacturing zones will benefit from tax exemption until 2031. This offers better visibility for companies planning long-term supply agreements with Indian manufacturers.
Key takeaway for NRIs in the UAE
Overall, Budget 2026 focuses on making routine NRI financial decisions easier—by reducing upfront tax burdens, simplifying property transactions, allowing greater investment flexibility, and improving clarity for cross-border business dealings.
