6 changes in India Budget 2026 that affect NRIs in UAE

The latest budget, the Union Budget 2026, introduced by the Finance Minister Nirmala Sitharaman offers some radical changes which would enhance the financial relationship of the diaspora with the homeland. In the context of people living in the Emirates, it became more about convenience in conducting business and less process heat. The repeal of the compulsory TAN on the purchase of property, a one-time disclosure of foreign assets window, and much reduced tax raised at the point of origin of an outward transfer are the key highlights. All these measures make the fiscal world much easier to the managers with dual interests in either country, as the overseas Indians can better serve the local economy as well as have easier administrative procedures.

Streamlining tax compliance for global residents

The introduction of a revamped Income Tax Act, effective April 1, 2026, marks a pivotal shift in tax compliance for overseas taxpayers. Government has eliminated the cumbersome TAN system in transacting property to simplify it with PAN based system. This enables resident buyers to make deposits using their current identification which eliminates a big challenge to the sellers in the Middle East. Moreover, the fact that the revised deadline of filing returns has been extended to March 31 gives much-needed flexibility to individuals who have to coordinate the documentation at different tax jurisdictions.

Increasing the equity cap for individual investors

To deepen capital markets, the budget has doubled the individual equity cap for Persons Resident Outside India (PROI). The share by individual investors in the paid-up capital of a listed company has now been increased to 10 percent, as compared to 5 percent. This change and an overall margin expansion to 24 provide a lot of space in expanding the portfolio. To the UAE-based investors who want to diversify their investments, this reform offers a direct entry into greater investments in the high-growth areas of India without having to set up complicated institutional arrangements.

Rationalizing remittance rules and TCS rates

The 2026 provisions bring massive relief through revised remittance rules regarding Tax Collected at Source (TCS). The overseas tour package rate has been reduced to a flat 2, a huge decrease compared to the high 20-percent rate before. This is a transformation that guarantees families who finance their education or traveling to spend less money upfront. These adjusted remittance rules are designed to improve liquidity and encourage legal financial channels for cross-border support. for more news updates, visit our Gulf Independent News page.

For Updates: Ministry of Finance – Budget 2026 Key Takeaways