In a bid to lure global talent, Finance Minister Nirmala Sitharaman’s 2026-27 Budget introduces a five-year exemption on overseas income for non-resident Indian professionals who come to India under government-notified schemes. The relief applies from the first year of their visit, provided they had non-resident tax status for the previous five consecutive years. (m.economictimes.com)
The measure targets senior specialists and ‘diaspora professionals’ who hesitate to accept Indian postings because foreign salary components become taxable once they spend 183 days in the country. By ring-fencing offshore earnings, New Delhi hopes to plug skill gaps in semiconductor fabrication, defence R&D and green-hydrogen projects—all sectors highlighted in the new Production Linked Incentive (PLI) pipeline.
![Budget 2026 offers five-year overseas-income tax holiday to NRIs on short-term assignments]()
Professionals considering such moves often face complex visa and residence-permit paperwork on top of tax planning. VisaHQ’s India portal (https://www.visahq.com/india/) can streamline the process by guiding applicants through e-business and employment visa requirements, document legalization, and on-arrival registration, ensuring compliance long before they set foot in the country.
Multinational employers welcomed the policy but sought clarity on what constitutes ‘government-notified schemes.’ Tax advisers expect a list akin to the Project Imports benefit, covering technology-transfer and ‘Make in India’ initiatives. A Central Board of Direct Taxes circular is due by 31 March.
For mobility teams the win is twofold: compensation packages can remain globally benchmarked without gross-up costs, and employees avoid double taxation headaches. However, firms must track assignment length carefully—the exemption lapses once the initial five-year window closes, potentially triggering a steep tax bill if secondments are extended.
The measure targets senior specialists and ‘diaspora professionals’ who hesitate to accept Indian postings because foreign salary components become taxable once they spend 183 days in the country. By ring-fencing offshore earnings, New Delhi hopes to plug skill gaps in semiconductor fabrication, defence R&D and green-hydrogen projects—all sectors highlighted in the new Production Linked Incentive (PLI) pipeline.
Professionals considering such moves often face complex visa and residence-permit paperwork on top of tax planning. VisaHQ’s India portal (https://www.visahq.com/india/) can streamline the process by guiding applicants through e-business and employment visa requirements, document legalization, and on-arrival registration, ensuring compliance long before they set foot in the country.
Multinational employers welcomed the policy but sought clarity on what constitutes ‘government-notified schemes.’ Tax advisers expect a list akin to the Project Imports benefit, covering technology-transfer and ‘Make in India’ initiatives. A Central Board of Direct Taxes circular is due by 31 March.
For mobility teams the win is twofold: compensation packages can remain globally benchmarked without gross-up costs, and employees avoid double taxation headaches. However, firms must track assignment length carefully—the exemption lapses once the initial five-year window closes, potentially triggering a steep tax bill if secondments are extended.
