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NRIs can claim deduction under section 80C

For instance, you can claim deductions on premium for life insurance, term deposits, pension schemes, and so on

For non-resident Indians (NRIs), what is the last date of filing income-tax returns (ITR)? Also, can NRIs, too, avail the benefits of tax deduction that resident Indians get under section 80C (Income-tax Act, 1961)?

—Jaideep Kumar

The due date of filing income-tax return is determined on the basis of sources of income of an individual in India. The due date, however, remains the same irrespective of your residential status.

You need to file your personal income tax return for the financial year 2014-15 (which was from 1 April 2014 to 31 March 2015) on or before 30 September 2015, if you have the following sources of income:

-Income from business or profession and where accounts of such business or profession are required to be audited in India; or

-If you are a working partner of a partnership firm whose accounts are required to be audited in India. The accounts are required to be audited if turnover in case of business exceeds 1 crore, and in the case of profession, if gross receipts exceed 25 lakh during the relevant financial year.

For other individual tax payers, the due date is 31 July of the subsequent year. Therefore, if you have any income such as salary, interest from, say, a bank fixed deposit, dividend, rent, capital gain from say, sale of property or units of equity mutual funds, and so on, you will have to file your income tax return for the financial year 2014-15 on or before 31 August 2015.

There is a special one month extension announced by the revenue authorities for the financial year (FY) 2014-15.

If the return could not be filed on or before the due date, then an option to file a belated return for that particular financial year is also available.

A belated income tax return can be filed within two years from the end of the relevant financial year. For example, belated tax return of the financial year 2015-16 can be filed on or before 31 March 2018.

A point of caution, though, is that belated income tax returns cannot be revised. Added to this, any loss reported in such a return cannot be carried forward to subsequent years for adjustments with income (this provision can be used if income tax return is filed on time).

And yes, NRIs can avail the same deductions under Section 80C that are available to resident Indians. For instance, you can claim deductions on premium for life insurance, term deposits, pension schemes, and so on.

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