Tax Deductions
Tax Deductions

As per the Act, there are certain deductions available to NRI for certain payments made which are explained as under:

Points to Remember:

  • Sec 80C, 80CCC deduction benefit is limited to Rs. 1,50,000 as prescribed u/s 80CCE

  • Deduction is allowed for donation paid in cash to a charitable trust upto Rs.2,000/- only

Frequently asked questions

A NRI pays LIC premium of RS. 90,000 and also he contributes in PPF for RS. 50,000 then what shall be his eligible deduction?

Computation of Eligible deduction as per Sec 80C

A NRI make payment of Medical insurance premium for self, wife and dependent children of RS. 28000 and also makes payment for mediclaim for parents (aged over 80 years) of RS. 32000, What shall be his eligible deduction under Chapter VI-A

A NRI makes the payments namely Stamp duty paid on acquisition of residential house (self-occupied) Rs. 50,000 ,Five year time deposit in an account under Post Office Time Deposit Rules,1981 Rs. 20,000, Donation to a recognized charitable trust Rs.25,000 which is eligible for deduction under section 80G at the applicable rate and Interest on loan taken for higher education of spouse paid during the year Rs.10,000.