What Tax Changes Indian Finance Budget 2023-24 introduced for NRIs? Read Highlights

Dean NRI Friend,

The Union Budget 2023-24, presented by Finance Minister Nirmala Sitharaman, focused on investment & infrastructure, green growth, and financial sector development. India’s FY2023-24 GDP growth is estimated to be 7%, the highest among major economies.

The budget has several good news for NRI taxpayers and investors and makes India even more attractive as a high-return investment destination.

Here is How The Budget Impacts NRI Investors & Tax Payers:

TDS to be slashed on payment of dividends to NRIs from current 20%. More dividend income in the hands of NRIs would allow increasing investments in Mutual Funds & Stocks.
Under the new tax regime, NRIs will pay ZERO tax on income up to Rs. 7 Lacs which was Rs. 5 Lacs, earlier. This means more disposable money in the hands of NRIs.
No increase in Tax Collected at Source (TCS) on foreign remittance for education/ medical treatment, will be the same (5%) for an amount more than Rs. 7 lahks. Similarly, remittance through education loan will be the same i.e. 0.5% for an amount more than Rs. 7 lahks. This will be a relief for a lot of NRIs.
However, TCS for foreign remittance for other purposes, such as overseas trips has been increased from 5% to 20%.
Changes in NRI Tax Slabs

The biggest relief came for NRIs with updates in tax slabs. NRIs who have any source of income will pay less tax rupees under the new income tax regime.

Income Tax Slab New Regime Slab Rate

  • Rs. 3.00 lakh to Rs. 6.00 lakh 5%
  • Rs. 6.00 lakh to Rs. 9.00 lakh 10%
  • Rs. 9 lakh to Rs. 12.00 lakh 15%
  • Rs. 12 lakh to Rs. 15.00 lakh 20%
  • Above Rs. 15.00 lakh 30%
  • Union Budget 2023 and NRIs

In summary, this budget provides numerous advantages to NRIs with revenue from India. While India has already emerged as a bright spot for investors in the face of global slowdown/ recession, lower tax and lower TDS on dividend payments will allow NRIs to increase their Indian investment portfolio.

And there is more…

The year 2023 is going to be even more pleasing for NRIs with upcoming changes in KYCs (digital option to be added), UPI for NRIs & more. In the last 12 months, 20,000+ NRIs trusted SBNRI for their investments and earned 8-17% return.

For more details, explore SBNRI App or connect with our NRI Investment/ Tax Experts.