Finance Minister Nirmala Sitharaman has delighted non-resident Indians (NRIs) with an array of reforms unveiled in Budget 2026. These initiatives range from enabling direct investment in equity to simplifying real estate transactions, providing significant advantages for the Indian diaspora. Below is a list of all the reforms presented in today’s Budget for NRIs.<\/p>\n\n\n\n
Individual Persons Resident Outside India (PROI) can now invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme. Budget 2026 also proposed to increase the investment limit for an individual PROI under this scheme from 5% to 10%, with an overall investment limit for all individual PROIs to 24%, from the current 10%.<\/p>\n\n\n\n
Neeraj Agarwala, Partner, Nangia & Co LLP, “For PROI investors in listed Indian equities, the investment limit has been raised from 5% to 10%, while the aggregate cap has increased from 10% to 24%. This move is expected to deepen capital markets and strengthen foreign investment inflows.”<\/p>\n\n\n\n
Sanjay Kumar, Director – Nangia Global Advisors LLP, says, “Ease of Doing Business is strengthened as persons resident outside India are permitted to invest in listed equities via the portfolio route. Doubling the individual cap to 10% and raising the aggregate limit to 24% will deepen markets and also boost FDI inflows.”<\/p>\n\n\n\n
A person resident outside India (PROI) includes any individual or entity that does not meet India\u2019s residency criteria under FEMA. Agarwala mentions, “This broadly covers NRIs, foreign nationals, and overseas entities who live or operate outside India for employment, business, or any long-term purpose. It also includes offices or branches located outside India, even if they are owned or controlled by an Indian resident. In simple terms, if a person or entity is based outside India and does not qualify as a resident, they are treated as a PROI.”<\/p>\n\n\n\n
To make real estate transactions easier, Budget 2026 has proposed eliminating a requirement for people buying property from non-residents. Currently, if you purchase a property from an NRI valued over Rs 50 lakh, you must get a Tax Deduction and Collection Account Number (TAN) to pay the tax at source (TDS). This has been a hassle for regular homebuyers, as TANs are usually for businesses, but individuals had to apply for one for a single property purchase. In contrast, buying from a local resident only needs a simple PAN-based payment, while the NRI process involves extra paperwork.<\/p>\n\n\n\n
To address this, Budget 2026 suggests that resident individuals and Hindu Undivided Families (HUFs) won\u2019t need a TAN when buying from a non-resident. Instead, they can use their regular PAN for tax deductions, making it as simple as buying from a local seller.<\/p>\n\n\n\n