How does the Union Budget 2025 affect NRI taxation on property investments?

Union Budget 2025-26 highlighted changes focused on tax compliance and reporting for taxpayers, including NRIs. For property investments, NRIs should pay close attention to capital gains reporting, TDS/TCS rules where applicable, and DTAA documentation to avoid double taxation and delays in refunds.

What are the new remittance limits for NRIs post-budget?

As per RBI repatriation rules, balances in an NRO account (including eligible sale proceeds) are generally remittable up to USD 1 million per financial year, subject to applicable taxes and documentation. Higher remittances may require approvals through an authorised dealer (bank).

Are there any changes in home loan policies for NRIs in this budget?

Home loan eligibility and interest rates for NRIs typically depend on individual lenders’ policies (income type, country of residence, credit profile, documents and LTV limits). If lenders revise NRI loan criteria or rates, it is usually notified by the lender rather than through a single blanket budget rule.

How does the budget influence real estate investments in Tier-2 and Tier-3 cities?

Budget priorities like infrastructure push, connectivity upgrades and affordable housing focus can improve demand and liquidity in Tier-2 and Tier-3 markets. This may support long-term capital appreciation and rental demand in well-connected micro-markets.

What steps has the government taken to prevent double taxation for NRIs?

India’s DTAA network helps prevent double taxation by allowing NRIs to claim tax credit or treaty relief in line with the relevant treaty. To claim DTAA benefits, NRIs generally need correct residency documentation such as a Tax Residency Certificate (TRC) and supporting forms as required.