Union Budget 2026 Unveils New Benefits for UAE-Based NRIs in Investment and Tax
February 3, 2026
India's Union Budget 2026, announced on February 1, 2026, offers new benefits for NRIs living in the UAE. The government has doubled the equity investment limit for Persons Resident Outside India (PROIs). Now, an individual PROI can invest up to 10% directly in a listed Indian company, up from 5%. The total share that all PROIs can hold has also increased to 24% from 10%. This makes it easier for UAE-based Indians to invest in Indian stocks and build bigger portfolios.
Property sales by NRIs have become simpler. Tax Deducted at Source (TDS) will now be deducted using the resident buyer’s PAN instead of requiring a separate TAN. This change reduces delays and hassle in cross-border property transactions.
The budget also lowers Tax Collected at Source (TCS) on overseas remittances for travel, education, and medical expenses. TCS on overseas tour packages is cut to 2% from 5–20%. For education and medical payments under the Liberalised Remittance Scheme, TCS is also fixed at 2%. These cuts lower upfront tax costs for UAE NRIs sending money to India.
In addition, NRIs can now invest directly in Indian equities under the Portfolio Investment Scheme (PIS), expanding their investment options beyond traditional routes. The budget also eases compliance by relaxing certain foreign asset disclosure rules and extending tax filing deadlines.
These measures signal a move towards simpler tax rules and greater investment access for the global Indian diaspora. The absence of new taxes on remittances and overseas income reassures NRIs in the UAE, who actively engage in India’s financial and property markets.
Overall, Budget 2026 makes India more welcoming for UAE-based NRIs. It reduces tax barriers, expands opportunities for equity investments, and simplifies cross-border financial activity. Whether investing in stocks, selling property, paying for education, or planning travel, NRIs get relief and clearer rules to connect with the Indian economy.
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Union Budget 2026
Nris
Uae
Investment
Tax compliance
Remittances
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