Kuwait NRIs: What the India-Side Changes Mean for Your Indian Tax Life

The 850,000-strong Indian community in Kuwait is one of the largest GCC diasporas. Your India-Kuwait DTAA caps interest at 10% and dividends at 10%, both unchanged. The rest of the landscape, however, shifted in four specific ways during 2024-26.

**Section 148 time limit.** Finance (No. 2) Act 2024, effective 1 September 2024: the Income Tax Department can now only reopen your assessment within 3 years of the end of the relevant assessment year. 5 years if the alleged escaped income exceeds ₹50 lakh. The old 10-year reopening window is gone.

**Faceless mandate.** Section 151A requires all Section 148 notices to go through the National Faceless Assessment Centre. Jurisdictional AOs have been issuing them directly for years anyway, especially in the International Taxation range. The Telangana HC and the Supreme Court (July 2025 SLP dismissal) have shut that down. Check any open 148 notice for its issuing authority.

**Budget 2024 LTCG.** 12.5% flat on Indian property capital gains, no indexation for NRIs. Effective 23 July 2024.

**Black Money Act threshold.** Small movable foreign asset safe harbour raised from ₹5 lakh to ₹20 lakh from 1 October 2024 (Finance (No. 2) Act 2024 amendment).

Kuwait NRIs continue to enjoy the India-Kuwait DTAA: 10% on interest, 10% on dividends, source-country taxation on capital gains. The TRC process through the Kuwait Ministry of Finance still applies. Form 10F is still mandatory on the Indian e-filing portal.

What changed is not your rates. It's the administrative plumbing around them. If your Indian CA is on autopilot from 2022, they're working with stale rules.

Kuwait doesn't issue tax residency certificates the way most Gulf countries do. Your Indian CA will often accept a Civil ID plus employer salary certificate in place of a formal TRC, but the Indian income tax portal increasingly asks for a proper TRC. This is the single most common reason Kuwait NRIs fail to claim treaty rates at source.

On top of that, the September 2024 Section 148 changes mean any reopening notice issued to a Kuwait NRI should now be NFAC-routed, not JAO-direct. If you got one from 2023 or earlier, check the issuing authority before you reply, a post-Telangana HC defence may exist.

If you're selling Indian property: Form 13 (Section 197) lower-TDS certificate before closing, always. Without it, buyers deduct 12.5% on the full sale price, not the gain. On a ₹1 crore sale that's ₹15-20 lakh stuck with the department for 6-12 months while you wait for the refund.