How can a Non-Resident Indian (NRI) claim tax exemption of up to 1.5 lakh (from funds in NRO account) under 80C and other sections? life insurance premium payment and children’s tuition fee paid to any school, college, university, or educational institution located in India for the full-time education of any two children. Equity-linked savings schemes (ELSS) allow NRIs to invest.
In the same manner as resident taxpayers, (NRIs) are eligible to claim deductions under Section 80C. Section 80C provides a number of options, and NRIs are also eligible to invest in (ELSS).
NRIs are permitted to invest in the following for Section 80C deductions: extra security premium installment and youngsters’ educational expense paid to any school, school, college or instructive foundation arranged in India for full-time training of any two kids.
The policy must be in the name of the NRI, their spouse, or any child (children may be dependent/independent, minor/major, or married/unmarried) in order to qualify for a rebate on the life insurance premium. The premium must not exceed 10% of the insured sum.
They can likewise guarantee 80C derivation on head reimbursements for a home credit taken for purchasing or developing private house property.
NRIs are not permitted to invest in PPF accounts, but they are permitted to maintain PPF accounts that they opened while they were residents of India. These investments cannot be deducted from their income under section 80C.
NRIs are also unable to participate in savings programs like the post office 5-year deposit and senior citizen savings programs.
Does a person’s total income in India include the interest on non-resident external (NRE) deposits?
Name withheld at request
Interest earned on deposits held in NRE accounts is not subject to taxation in India and is not included in the total taxable income there.
However, NRE accounts must be converted to resident accounts as soon as the NRI returns to India with the intention of living there for an unspecified amount of time or plans to do so, and any interest earned after this conversion is taxable in India.
