NRIs are eligible for Tax Deductions
NRIs can avail of the tax deductions under Section 80C, which at present allows a maximum deduction of up to ₹ 1.5 lac.

Examples of eligible investments are Life insurance premium, Repayment of Principal on Housing Loan, Children Education fees, Investment in Tax-saving Mutual Funds etc.

Further an NRI, can also claim a deduction on Health Insurance premium paid

up to ₹ 25,000 on insurance cover d for self, spouse and dependent children. Deduction of up to ₹ 50,000. is available if the insurance is for the health of Senior citizens.

Filing of Income Tax Returns/tax payments are required only when the aggregate Income from all the sources exceeds the limit of ₹ 2.5 Lacs OR ₹ 3 Lacs for those between 60 to 80 years of age, OR ₹. 5 Lacs for those above 80 years.

Tax compliances:  As a law abiding  person,  it is advisable to update  the status as NRI on the Income Tax Portal.

• Tax Assessment and Payments: Incomes earned in  India, from the sources like,  Interest or Dividend,  Rental income from House property,  Sale of Shares, Sale of properties etc., attracts tax liability in India, though the status of a person in NRI.

Our Tax Experts help you to make a proper assessment of the tax impact of the proposed financial transaction.

• File Income Tax Return: We file your Tax Returns with high degree of accuracy  taking care of all the applicable rules and regulations.
• Tax Notice and Assessments : In case you are served a Notice/ Assessment intimation or any other legal correspondence from Tax Departments, don’t worry..    

Your tax companions at Finance Domain will study the content of the notice, ascertain the underlying facts, in light of the prevailing laws  and advise you a suitable course of action.         

As per Indian Income Tax laws, until the Financial year (FY 2019-20), Person residing in India for more than 181 days in a financial year were treated as Residents and people with stay period of less than 181 days were treated as Non –resident (NRI).

However as per the Finance Act 2020, the period of stay in India is reduced from 181 to 120 days in a financial year, for a person earning Income more than ₹15 lacs in India during the financial year.

Thus, a visiting NRI whose total income in India is up to ₹15 lacs during the financial year will even now remain NRIs as long as stay in India does not exceed 181 days. By this concession, millions of middle classes are saved from the clutches of the Income Tax.

Thus, for efficient financial planning of NRIs, 2 elements need to be monitored:

• Number of days stay in India and
• Taxable Income earned in India.

Secondly, an Indian citizen who is not liable to be taxed in any other country or territory shall be deemed to be resident in India. Again, the people in genuine employment outside India are kept out of the purview of this section.
The main purpose of this amendment seems to be targeted towards the habitual tax offenders who “manage” their stay in India so as to avoid payment of tax.

Importantly, for making Investment related decisions, status as non-Resident should be determined as per Foreign Exchange Management Act (FEMA). As per FEMA, a person is Not a Resident in India if he/she have been in India for a period Not More than 182 days during the preceding financial year.