As per the income tax rules, the non-resident Indians also need to pay the taxes to the government. For helping the NRI’s we are always here with the best ideas and plans for the same. This is a very informative article, where we are going to highlight about the important tax saving tips for the NRIs. The points that are mentioned here would surely help them out in saving a big portion of their earnings.
- There are many plans for the NRI’s that they can use to save taxes in India. There are certain specified schemes investing on what they can save taxes. These include pension plans, life insurance policies and tax-saving mutual funds. The repayment by an NRI towards principal amount of home loan is eligible for deduction up to Rs 1 lakh under Section 80 C, while the interest payment is also allowed as a deduction.
- Also, under Section 80D, NRIs can purchase a health insurance policy here for themselves, their family as well as dependent parents, and claim deduction up to Rs 35,000 for the annual premium paid. However, some investment avenues have been restricted by the RBI. So, an NRI cannot invest in the National Savings Certificates, Senior Citizens Savings Scheme and post office time deposits or open a fresh PPF account.
- If case an NRI has been repaying an education loan taken for him, child or spouse, the interest paid can be claimed for deduction. Similarly, your philanthropic interests in the country can help you claim benefits under Section 80G.
- An NRI can also save tax if you invest the gains earned from the sale of an asset within a specific period. He can claim exemption on long-term capital gains from the transfer of a foreign exchange asset if he invests the sale proceeds in specified schemes within six months of selling the asset. The amount of exemption is calculated based on the amount reinvested.
- NRIs can put their money in tax-saving bonds too.
Contacting a reliable NRI tax service company for the best assistance would always be fruitful. You can contact them for better assistance as they will help in providing best guidelines for saving taxes.