Gold, baggage and tax sops for NRIs in Indian budget 2026

The Indian Union Budget 2026–27, presented in the Indian Parliament on February 1, has delivered a series of measures welcomed by Indians living abroad, including higher gold-carrying limits, expanded baggage allowances, tax relief and investment-friendly reforms aimed at strengthening engagement with the diaspora.
One of the most appreciated changes relates to gold jewellery, long a source of customs disputes at Indian airports. Under the revised rules effective February 2, female passengers may now carry up to 40 grammes of gold jewellery duty-free, while male passengers are permitted up to 20 grammes. Earlier, the allowance was restricted to value-based limits of ₹1 lakh and ₹50,000 respectively.
The shift to weight-based limits has been widely welcomed, particularly among expatriates in Gulf countries, as it simplifies compliance and reduces confrontation at the airports, a long-pending demand given the cultural importance of gold in weddings and festivals.
The duty-free baggage allowance has also been increased from ₹50,000 to ₹75,000, benefitting expatriates bringing gifts, electronic items and household goods for family members. In addition, passengers above 18 years of age may carry one laptop or notebook for personal or family use, provided it is not intended for sale.
Among other measures welcomed by Non-Resident Indians (NRIs) and Persons Resident Outside India (PROIs) is the increase in the aggregate investment limit in Indian equity markets from 10 per cent to 24 per cent. The reduction of Tax Collected at Source (TCS) on foreign travel, overseas medical expenses and education remittances from 5 per cent to 2 per cent, under Liberalised Remittance Scheme (LRS) has also been positively received.
The abolition of the Tax Deduction and Collection Account Number (TAN) requirement for resident buyers in property transactions involving NRIs is viewed as a significant procedural relief.
On the direct taxation front, tax incentives on global income for returning professionals are seen as an attempt to encourage skilled diaspora members to work in India. The measure is expected to attract high-skilled Indians who were previously deterred by complex tax provisions.
The one-time disclosure scheme — FAST-Ds-2026 — provides NRIs a six-month window to declare previously unreported foreign assets or income by paying only tax and interest, along with reduced penalties and waiver of prosecution. The extension of deadlines for filing belated and revised returns; and the option to update returns during reassessment proceedings, have also been described as taxpayer-friendly steps.
The new Income Tax law will come into effect from April 1, 2026, the Finance Minister Nirmala Sitharaman informed Parliament.
From a broader economic perspective, the Budget emphasises growth, fiscal discipline and investment expansion. A major thrust has been given to capital expenditure to stimulate economic activity amidst global uncertainty, while prioritising long-term domestic sector development.
However, sections of the migrant community expressed disappointment that several long-standing demands were not addressed. These include a comprehensive social security framework under a single umbrella, permission to participate in long-term government small-savings schemes, concerns over perceived tax discrimination and the issue of excessive airfares during festive and peak travel seasons.
As a result, the overall response among expatriates has remained mixed despite the relief measures announced.

R Madhusoodanan

The writer is the Executive Advisor to the Board, Global Money Exchange, Muscat.