Imagine being an Indian working abroad, having to pay taxes on your hard-earned foreign income only to return to India and face another round of taxation.
That’s about to change with the latest budget announcement.
NRI Tax Relief in Budget 2026
The government has announced a five-year tax exemption on overseas income for non-resident Indians (NRIs) visiting India.
This means NRIs can now enjoy a tax-free stint in India without having to worry about paying taxes on their foreign income.
However, it’s worth noting that this exemption applies only to NRIs living abroad and not those who have Indian assets or property.
According to experts, this move is expected to boost the country’s NRI population, which has been dwindling in recent years.
“This is a great relief for NRIs who have been facing tax complexities while repatriating their earnings,” said Sanjay Kumar, a tax consultant.
While this announcement is a welcome respite for NRIs, it remains to be seen how this will impact the country’s tax revenue in the long run.
One thing is certain, though – with this tax break, India is becoming an increasingly attractive destination for NRIs looking to return home.