Union Budget season in India is when every NRI briefly becomes a tax expert. WhatsApp groups fill with forwarded analyses of varying accuracy. Here is what actually matters for Non-Resident Indians in the 2026 budget.
1. NRE deposit interest remains tax-free. This was the big worry going into the budget, and it did not materialise. Interest on NRE fixed deposits continues to be exempt from Indian income tax. If you are parking Gulf earnings in NRE FDs, your strategy remains intact.
2. TDS on NRO interest unchanged at 30%. Rental income, interest, and other India-sourced earnings deposited into NRO accounts are still subject to 30% TDS plus applicable cess. File a return to claim refunds if your total India income falls below taxable thresholds.
3. Capital gains on property. The indexation benefit for long-term capital gains on property sold after holding for more than two years has been retained. NRIs selling property in Kerala should plan the sale timing carefully; the difference between short-term and long-term treatment can be lakhs of rupees.
4. Remittance under LRS. The Liberalised Remittance Scheme limit remains at $250,000 per financial year. TCS on remittances above Rs 7 lakh for investments abroad continues at 20%. This matters for NRIs sending money FROM India, not TO India.
5. Infrastructure push continues. The capital expenditure allocation increased again, which is good news for Kerala’s ongoing projects and for NRI property investors banking on infrastructure-driven appreciation.
The boring truth about the budget: for most NRIs, nothing dramatic changed. Your NRE FDs are safe, your property investments are unaffected, and the tax rules you are already following still apply. Save yourself the WhatsApp analysis. This summary is all you need.