NRI TAX RETURN FILING IN INDIA- VARIOUS EXEMPTIONS AND DEDUCTIONS AVAILBALE

NRI TAX RETURN 


Although both residents and nonresidents are subject to tax in India on income earned or accrue or arise in India, and liable to file their Income Tax Return in India, however, taxability of Non Residents in India are slightly different from Residents and they are allowed various exemptions and deductions under the Act.

 

There are certain incomes of NRIs which are exempted from tax and accordingly, will not form part of NRI Tax Return Filing in India.

 


Incomes of NRIs exempted from tax


Following incomes of NRIs are exempted from Tax in India.

 

1)      Any Interest earned by NRI on its NRE or FCNR account with any bank in India.

 

2)      Any interest earned on government notified bonds and government saving certificates.

 

3)      Long term capital gains upto Rs.1 lac from listed equity shares and equity oriented funds.

 

4)      Similar to exemptions available to Residents from long term capital gains from sale of house property or any other long term asset on reinvestment in the manner prescribed under section 54, 54 and 54EC of the Act, similar exemption is also available to Non Residents on fulfilling the prescribed conditions.

 

Types of Tax Deductions allowed to NRI


Just like Residents are allowed Income Tax deductions under the Act, similarly, NRIs are also allowed various deductions form the tax computation as mentioned below:


a)      Premium paid on Life Insurance subject to the condition that amount of premium must be less than 10% of sum assured and insured must be NRI, spouse or an offspring.

b)      Payment of Tuition fees to any institution in India for full time education of any 2 children

c)      Payment of principal portion of housing loan along with stamp duty, registration fees and other expenses incurred in connection with the transfer of house property

d)      Investment in ULIP of LIC mutual fund or ULIP of UTI

e)      Deduction of interest paid on housing loan up to Rs.200,000 for vacant house and full interest paid writ rented house property.

f)       Deduction allowed u/s 80D up to Rs.50,000 for health insurance of immediate family and dependents. Also, up to Rs.5000 for preventive health checkups.

g)      Deduction u/s 80E for interest paid on education loan for higher education of self, spouse, children etc. subject to 8 years or till the interest is paid whichever is earlier.

h)      Deduction u/s 80TTA for an amount of maximum Rs.10,000 on interest earned on saving bank account.

i)        Deduction u/s 80G subject to fulfillment of conditions prescribed in the section.

 

 

 

Accordingly, from the foregoing it may be concluded that there are lots of similarities between exemption and deductions available for the NRIs as well as Residents from their annual income and same may be taken into consideration at the time of filing NRI Tax Return in India.

 

 

In case you need any further clarification or information or any support, you may contact us at www.ezybizindia.in  or call @ +919899217778

 

 

 

 

 

 

 

Location: India

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