Non-Resident Indians (NRIs) are subject to the same tax laws as residents of India, but there are certain tax benefits and exemptions that they can claim. Some of the key tax planning strategies for NRIs in India include:
Investing in tax-free bonds: NRIs can invest in tax-free bonds issued by the Indian government, which provide a fixed rate of return and are exempt from tax.
Claiming deductions under Section 80C: NRIs can claim deductions under Section 80C of the Income Tax Act for investments in certain tax-saving instruments such as Public Provident Fund (PPF) and National Savings Certificate (NSC).
Renting out property: NRIs can earn rental income from property in India, and claim deductions for expenses such as repairs and maintenance, property taxes, and interest on home loans.
Claiming double taxation relief: NRIs can claim relief from double taxation under the Indian Income Tax Act or under the relevant Double Taxation Avoidance Agreement (DTAA) between India and the country of residence.
Opening NRE and NRO accounts: NRIs can open Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts in India to manage their income and investments in India.
It's important to note that laws and regulations are subject to change and one should consult a tax professional for more specific advice.
