Deductions That NRIs Can Avail Under Section 80 Of Income Tax Act

Non Residential Indians or NRIs who earn or have investments in India are eligible for income tax e-filing. As like all other taxpayer category in India, NRIs are also eligible to apply for certain deductions on their taxable income according to Section 80 under the Income Tax Law. The deductions prescribed under section 80 are available for NRIs just like any Indian citizen. A total deduction of INR 1,50,000 is allowed per each financial year during income tax e-filing.

Section 80C:

According to this section, any NRIs who has purchased Life Insurance policy or principal repayment policies, mutual funds or Unit Linked Insurance Plans are eligible to get deductions on income tax rate. Such funds can be purchased for self or immediate family members are eligible to get deductions for income tax e-filing. Also, any NRI, who pays tuition fees for their children studying in Indian institution will get deductions under this category.

Section 80D: 

NRIs can also claim deductions against premium paid for health insurance they have purchased under this section. The deduction limit is INR 20,000 for senior citizens and INR15,000 for others, including self, parents and family members. All together, they can claim a benefit up to INR 40,000 during income tax e-filing under this section.

Section 80E:

This section offers a deduction for interest paid on an education loan taken for own children or spouse or self. They can also claim the same if they are the legal guardian of any student studying in any recognized Indian institutions. The deductions are applicable for the EMI paid for a maximum of 8 years during income tax e-filing, but there is no deduction prescribed for principal repayment of the loan.

Section 80G: 

NRIs can also claim a deduction for donations made for social causes under this section. 100% of the such amount qualifies for tax deductions.

Section 80TTA:

A maximum of INR 10,000 can be claimed under this section against any savings bank account during . This deduction is allowed only for the savings account maintained with any co-operative bank or post office.

If you are an NRI, than do not forget to claim this deductions during income tax e-filing for this Financial year.

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