Budget 2026 for NRIs: 2% TCS, a bigger PIS limit and a disclosure window.

The February 2026 Budget cut TCS on education, medical and tour remittances to 2%, doubled the PIS holding cap, and opened a one-time foreign-asset disclosure window — here is what changes from 1 April 2026.

The February 2026 Budget left slabs and capital-gains rates untouched — and still managed to be the most NRI-relevant budget in years. The action is in remittances, investment limits and one unusual amnesty window.

TCS on remittances: 2% is the new headline rate

From 1 April 2026, tax collected at source under the LRS changes shape:

• Education (self-funded) and medical treatment: 2% on the amount above ₹10 lakh per financial year — down from 5%.
• Education funded by a financial-institution loan: still nil, with no cap.
• Overseas tour packages: a flat 2% through registered operators — down from 5%/20%, though without the ₹10 lakh threshold for this category.
• Everything else — foreign investments, gifts, maintenance of relatives — stays at 20% above ₹10 lakh. The headline "flat 2%" reported in the press does not extend to investment remittances.

TCS remains a prepaid credit, not a cost: it lands in Form 26AS and offsets tax or returns as a refund. But halving the upfront collection on education is real cash-flow relief for families funding students abroad.

The PIS limit doubles

The cap on what an NRI or OCI can hold in a single Indian listed company under the Portfolio Investment Scheme rises from 5% to 10% — meaningful headroom for NRIs building concentrated Indian equity positions through NRE/NRO PIS accounts.

Property-sale paperwork, simplified

The Budget also moved to simplify the compliance around NRI property sales. The core economics do not change — the buyer still withholds on the full sale price, and a lower-deduction certificate remains the fix — but the procedural load is being trimmed. Sellers should still sequence the certificate before signing.

A six-month disclosure window for foreign assets

The Budget opened a one-time, six-month voluntary disclosure scheme for previously unreported foreign assets and income, closing 31 December 2026, with immunity from Black Money Act penalties in exchange for a defined payment — covered in detail in our companion note on the disclosure scheme. Alongside it, holders of small non-immovable foreign assets (up to ₹20 lakh) get relief from prosecution, subject to conditions.

What to actually do before March 2027

• Families funding education: if remittances can wait until after 1 April 2026, the TCS saving is automatic; if a loan funds the course, TCS is nil either way.
• NRIs with concentrated stock positions: revisit PIS limits with your broker.
• Anyone with an unreported foreign account, ESOP or property: the disclosure window is the cheapest exit the law has offered in a decade — and it closes 31 December 2026.

How Advisory Monks Consulting helps

Our Pravasi Desk and Cross-Border Tax practice model the TCS impact on your remittance plan, handle PIS and repatriation compliance, and assess disclosure-window eligibility on your facts.

General information, not advice; rates as announced for FY 2026-27 — confirm the enacted text.

This note is general guidance, not tax or legal advice. Positions depend on your specific facts — speak with a partner before acting.