Income Tax Deductions Available to NRIs
Non-resident Indians have to pay tax and file a return in India if there income from sources in India exceeds R s. 2,50,000 in financial year 2014-15. Similar to resident Indians some deductions are available to non-resident Indians in their tax return. Once of the most popular means of claiming a deduction from gross total income is via Section 80C. For financial year 2014-15 and financial year 2015-16, a maximum deduction of R s. 1,50,000 is allowed under section 80C. Of the deductions under Section 80C, those allowed to NRIs are: Life insurance premium payment : This deduction can be claimed where the policy has been purchased in the NRI's name or in the name of their spouse or any child's name (the child may be dependent/independent, minor/major, or married/unmarried). To claim deduction under section 80C, the premium must be less than 10 per cent of sum assured. Tuition fee payment : NRIs can claim tuition fees paid to any school, college, university or ot...