For Indians living in the Kuwait, financial life often stretches across borders — from investing in shares and selling property to funding education or booking travel from Indian accounts.

India’s Union Budget 2026 may not have overhauled the tax system, but it introduces practical changes that make every day financial decisions easier for Non-Resident Indians (NRIs). Here are six key developments and what they mean for your savings, investments, property, and taxes.

Overseas travel, education and medical remittances become cheaper: The Budget cuts the upfront tax collected at source (TCS) on several international expenses to 2%, improving cash flow for families.

Overseas tour packages: Tax reduced to a flat 2% from earlier 5% and 20% slabs.

Education abroad: Remittances sent from India for tuition and study expenses now attract 2% tax, down from 5%.

Medical treatment abroad: Tax on such remittances is also cut to 2%.

This means less money gets blocked upfront when paying foreign university fees or booking international travel from an Indian bank account, making budgeting easier for families.

Selling property in India gets easier: A major procedural hurdle for NRI property sales has been removed.

Earlier, buyers purchasing property from an NRI had to obtain a Tax Deduction and Collection Account Number (TAN) to deduct tax before payment — a step many found complicated, Gulf News reports.

From October 1, 2026, buyers can use their existing PAN instead. This simplifies transactions and may reduce buyer hesitation, making it easier for NRIs to sell flats, villas, or land in India.

One-time chance to declare undisclosed overseas assets: The Budget introduces a one-time disclosure window for individuals who may have unintentionally failed to declare overseas assets such as:

Old student bank accounts

• Shares from previous employment abroad
• Insurance policies held overseas
• Eligible individuals can declare these assets, pay applicable dues, and regularise their position without facing severe penalties or prosecution.

Higher limit for direct share investments: NRIs investing directly in Indian listed companies through NRE or NRO accounts under the Portfolio Investment Scheme can now hold up to 10% in a single company, up from the earlier 5% limit.

This offers greater flexibility for long-term investors who prefer direct equity investments rather than mutual funds and previously had to stop buying after reaching the cap.

Relief for certain NRI-linked businesses: The budget removes minimum tax requirements for certain businesses taxed under simplified regimes.

This mainly benefits:

• Cruise ship operations
• Services linked to setting up electronics manufacturing units in India
• For cross-border businesses connected to these sectors, tax compliance may now be simpler and more predictable.

Tax Clarity for Kuwait firms supplying equipment to India: Foreign companies, including Kuwait-based firms, supplying machinery, tools, or equipment to electronics manufacturers in designated Indian zones will enjoy tax exemption on such income until 2031.

This provides long-term visibility and may encourage deeper commercial ties in manufacturing and technology sectors.

The Bottom Line

India’s Budget 2026 may not have delivered headline-grabbing reforms, but it removes several practical obstacles that NRIs often face.

It reduces upfront tax on overseas spending

• Simplifies property transactions
• Allows correction of past reporting gaps
• Expands investment flexibility
• Eases tax complexity for certain cross-border businesses

For Kuwait-based NRIs managing financial ties with India, the changes aim to make routine decisions smoother and less stressful.