After deciding the residential status of a person in accordance with the section 6 of the Income Tax Act. & if the person becomes Non Resident then before calculating  the Taxable Income & tax liability .there are some deductions which can be availed by the Non Resident also.

What are the Deductions?

  • Deduction under section 80C:

 In this section, most of the benefit can be availed by the Non Resident.  Deduction in this section is of Rs. 1,50,000/- like resident Indian .  There are some specific deduction which NRI can be taken like amount paid towards  LIC, Tuition Fees, Principal repayment of loan, Unit linked Insurance Plan, Investment in ELSS.

  • Deduction under section 80D:

NRI can also avail deduction of medi claim paid by him for his health or his family. And  also for his parents.  Limit of deduction is same as available to resident Indian  i.e.  Rs. 25,000/- if neither he nor his parents are senior citizen, and Rs. 50,000/- if parents are senior citizen.

  • Deduction under section 80E:

NRI can claim deduction of interest paid on education loan like resident Indian. There is no limit for the amount to be claim. He can claim such deduction either  for 8 years or till the interest paid whichever is earlier.

  • Deduction under section 80G:

NRI is also allowed to claim deduction under this section.  There are some investment in which NRI can done investment   and claim the deduction.

  • Deduction under section 80 TTA:

NRI is also eligible to claim deduction upto Rs. 10,000/- of interest received from saving  bank account.

Some Other provisions for NRI:

 Advance Tax Liability:

If the tax liability is exceeds of Rs. 10,000/- then NRI is also required to pay Advance tax in accordance with the provision of section  234B & 234C.

Due date for filling Tax Return:

Due date for filling Income Tax Return is 31st July.

In this way, NRI can also save his taxes by investing in above specified sections.  Whether NRI is required to file his income tax return in all situations or there are some exceptions for this you can refer the article link……

BY – Monika N Rathi