Can NRIs avail of any tax deductions?

—Title withheld on request

The next deductions aren’t allowed for NRIs underneath the earnings tax Act:

Investments underneath part 80C: Funding in public provident fund, or PPF, will not be allowed. (NRIs aren’t allowed to open new PPF accounts. Nonetheless, PPF accounts which are opened whereas they had been residents are allowed to be maintained.)

The identical rule applies for Investments in nationwide financial savings certificates scheme and the publish workplace five-year deposit scheme, senior citizen financial savings scheme.

Deduction for the differently-abled underneath part 80DD , which is for upkeep, together with medical remedy, of an individual with a incapacity as outlined on this part, can also be not accessible to NRIs.

Deduction for the differently-abled underneath part 80DDB in direction of medical remedy of a dependent who’s disabled (as licensed by a prescribed specialist) is obtainable solely to residents.

Deduction for the differently-abled underneath Part 80U, the place the taxpayer himself has a incapacity as outlined within the part, is allowed just for resident Indians.

My earnings in India is lower than 2.5 lakh from rental earnings. Do I have to file an earnings tax return (ITR)? If that’s the case, which ITR kind is relevant?

—Title withheld on request

Assuming you haven’t any different earnings, your whole taxable earnings is prone to be under the taxable restrict of 2.5 lakh. It’s possible you’ll select to not file your earnings tax return.

Nonetheless, there are lots of advantages to submitting an earnings tax return—it’s a document of your earnings earned. In case any tax has been deducted at supply (TDS) from the earnings earned by you and your whole earnings is under taxable restrict, then you may declare a refund by submitting an earnings tax return.

Archit Gupta is founder and chief govt officer, Clear.in.

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