Budget 2026: Key NRI-related income tax reforms
1/5
Simplified property transaction compliance
Budget 2026 proposes that where an NRI sells immovable property in India, the resident buyer/HUF no longer needs a TAN for TDS. Instead, the buyer’s PAN-based challan can be used to deduct tax at source, reducing compliance burden for residents buying from NRIs.
2/5
Reduced Tax Collected at Source (TCS) rates
The TCS rate on overseas tour packages is proposed to be reduced to 2%. Similarly, TCS on remittances under the Liberalised Remittance Scheme (LRS) for education and medical purposes is also being cut to 2%, easing upfront tax collections on common remittance categories.
3/5
One-Time foreign asset disclosure scheme
A six-month, one-time Foreign Asset of Small Taxpayers Disclosure Scheme will allow individuals to disclose previously unreported overseas income or assets. The aim is to simplify reporting and improve compliance for NRIs holding foreign assets.
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4/5
Revised duty-free & customs rationalisation
The Budget revises duty-free allowances for personal imports and introduces a uniform customs duty on personal imports including gifts. It also brings in online/app-based facilities for making customs declarations and payments, making international travel and relocation procedures smoother for NRIs.
5/5
Easier declaration for returning NRIs
NRIs transferring residence back to India will benefit from a revised duty-free entitlement for household articles imported from abroad, along with easier procedures for declaring and paying customs duties on personal imports.