Non-resident Indians have to pay tax and file a return in India if their income from sources in India exceeds Rs 2,50,000 in a financial year. Similar to resident Indians some deductions are available to non-resident Indians in their tax return especially if you have life insurance. One of the most popular means of claiming a deduction from premium paid for insurance via Section 80C.
What is Section 80C?
Section 80C of Income Tax Act has come into effect from April 1, 2006, and allows an individual to claim tax exemption on specific investments. It allows a deduction from gross total income (before arriving at taxable income) of up to Rs 1.5 lakh per annum on eligible investments and specified expenses. Eligible investments include life insurance, equity-linked savings schemes, Public Provident Fund, National Savings Certificate, five-year notified tax-saving bank deposits, five-year post office time deposits, Senior Citizens’ Savings Scheme, Sukanya Samriddhi Account and Employees’ Provident Fund. Expenses and other outflows.
Tax benefits on the Premiums Paid
You can avail tax benefits under Section 80C on your Indian income up to `1.5 lakh paid towards Life Insurance. You can also save tax by investing in a life insurance policy in the name of members under Hindu Undivided Family (HUF) as per Section 80C of the Income Tax Act. There are also other tax benefits like you can also avail tax benefits on the earnings and maturity benefits of your life insurance policy under Section 10(10D).
The information provided in this article is generic in nature and for informational purposes only. It is in no manner can act as a substitute for specific advice in your own circumstances. We Strongly recommend you to seek professional guidance pertaining to your query or doubt.
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India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country.
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