Finance Minister Nirmala Sitharaman’s Union Budget 2026, presented on 1 February, contains two headline measures of immediate interest to globally mobile Indians: a sharp cut in Tax Collected at Source (TCS) on foreign tour packages and a liberalised investment regime for Non-Resident Indians (NRIs) and other persons resident outside India (PROIs).
TCS on overseas tour packages falls to 2 percent irrespective of value, down from the controversial 5–20 percent slabs introduced in 2023. The reduction eases upfront cash outflows for families funding business-leisure (“bleisure”) trips and corporate off-sites, and will simplify expense accounting for companies whose employees book travel directly.
With overseas travel set to become less cash-intensive, many Indians will be arranging visas more frequently; VisaHQ’s India portal (https://www.visahq.com/india/) offers a one-stop platform to check destination-specific requirements, complete electronic forms and schedule courier pickups, dramatically simplifying compliance while the Budget’s new tax savings are enjoyed.
![Budget 2026 halves TCS on overseas tours, doubles NRI equity limit to 10 percent]()
Separately, the individual investment ceiling under the Portfolio Investment Scheme doubles from 5 percent to 10 percent of a company’s paid-up capital, while the aggregate cap for all PROIs rises to 24 percent. The change is expected to attract an additional US$4–5 billion in diaspora capital, according to Kotak Institutional Equities.
Tax experts note that lower TCS also applies to remittances under the Liberalised Remittance Scheme for education and medical treatment abroad, reduced from 5 percent to 2 percent, benefiting Indian students and patients overseas. Employers that sponsor overseas training should revisit gross-up provisions in assignment policies.
Rules will take effect 1 April 2026 following passage of the Finance Bill. Payroll teams should update withholding systems, and mobility managers should brief travelling staff on lower advance-tax costs when booking trips after that date.
TCS on overseas tour packages falls to 2 percent irrespective of value, down from the controversial 5–20 percent slabs introduced in 2023. The reduction eases upfront cash outflows for families funding business-leisure (“bleisure”) trips and corporate off-sites, and will simplify expense accounting for companies whose employees book travel directly.
With overseas travel set to become less cash-intensive, many Indians will be arranging visas more frequently; VisaHQ’s India portal (https://www.visahq.com/india/) offers a one-stop platform to check destination-specific requirements, complete electronic forms and schedule courier pickups, dramatically simplifying compliance while the Budget’s new tax savings are enjoyed.
Separately, the individual investment ceiling under the Portfolio Investment Scheme doubles from 5 percent to 10 percent of a company’s paid-up capital, while the aggregate cap for all PROIs rises to 24 percent. The change is expected to attract an additional US$4–5 billion in diaspora capital, according to Kotak Institutional Equities.
Tax experts note that lower TCS also applies to remittances under the Liberalised Remittance Scheme for education and medical treatment abroad, reduced from 5 percent to 2 percent, benefiting Indian students and patients overseas. Employers that sponsor overseas training should revisit gross-up provisions in assignment policies.
Rules will take effect 1 April 2026 following passage of the Finance Bill. Payroll teams should update withholding systems, and mobility managers should brief travelling staff on lower advance-tax costs when booking trips after that date.
