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Business News/ Money / Personal Finance/  Can NRIs avail of any tax deductions?
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Can NRIs avail of any tax deductions?

Deduction for the differently-abled under section 80DD , which is for maintenance, including medical treatment, of a person with a disability as defined in this section, is also not available to NRIs.

Photo: HTPremium
Photo: HT

I live in the US. Can you please let me know which tax deductions are not allowed for non-resident Indians (NRIs)?

—Name withheld on request

The following deductions are not allowed for NRIs under the income tax Act:

Investments under section 80C: Investment in public provident fund, or PPF, is not allowed. (NRIs are not allowed to open new PPF accounts. However, PPF accounts that are opened while they were residents are allowed to be maintained.)

The same rule applies for Investments in national savings certificates scheme and the post office five-year deposit scheme, senior citizen savings scheme.

Deduction for the differently-abled under section 80DD , which is for maintenance, including medical treatment, of a person with a disability as defined in this section, is also not available to NRIs.

Deduction for the differently-abled under section 80DDB towards medical treatment of a dependent who is disabled (as certified by a prescribed specialist) is available only to residents.

Deduction for the differently-abled under Section 80U, where the taxpayer himself has a disability as defined in the section, is allowed only for resident Indians.

My income in India is less than 2.5 lakh from rental income. Do I need to file an income tax return (ITR)? If so, which ITR form is applicable?

—Name withheld on request

Assuming you have no other income, your total taxable income is likely to be below the taxable limit of 2.5 lakh. You may choose not to file your income tax return.

However, there are many benefits to filing an income tax return—it is a record of your income earned. In case any tax has been deducted at source (TDS) from the income earned by you and your total income is below taxable limit, then you can claim a refund by filing an income tax return.

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

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Published: 13 Feb 2023, 11:05 PM IST
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