How Can NRI Save Taxes?

DM Posted by: Devika Mishra
• 28 September, 2025
3 Reply

NRIs can save taxes through various ways, like, 

  • From the NRO, NRE, and FCNR accounts, according to the Income Tax Act, 1961, interests earned on these accounts are tax-free in India. 
  • Through claiming the Tax Deduction at Source, if their total tax liability is lower than the amount to be deducted. They can claim a TSD by filing an ITR in India. 
  • By using the Home loan tax benefits, you can claim a deduction of INR up to 2 lakhs on the interest paid on the home loans or an individual property, and for the outstanding amount of the home loan, you are eligible to get a deduction under section 80C for up to 1.5 lakhs yearly. 
  • Claiming the House rent Allowance is also an option for the NRI, by which they can get the HRA as a part of their salary and claim a HRA exemption under Section 10(13A). 
  • Investments in the unit-linked insurance plans have a double advantage with insurance coverage and tax benefits. 

Tags : NRI Save Taxes

  • Radhika Raina 01 October, 2025

    Help me know the provisions apart from section 80C that allow tax deduction for NRIs? 

    • S
      Savetaxs 02 October, 2025

      Given below are the provisions that allow an NRI to get a tax deduction: 

       

      • Section 54-54F: Exemption on long-term capital gains (Section 54), and other assets apart from property (Section 54F). 
      • Section 24: Grant you a deduction of 2 lakh on the interest for home loan repayment. 
      • Section 80D: Allows medical insurance for dependent parents, self, and spouse. 
      • Section 80EE: Deduction on interest on the first-time home loan payments. 
      • Section 80G: Allows deduction for charitable organizations and donations. 
      • Section 80GG: Rent deduction under section 80GG if the income does not include HRA. 
      • Section 80TTA: Allows you to make deductions up to INR 10,000 on bank deposits and savings accounts. 

       

  • Akshara Iyer 30 September, 2025

    NRIs can save tax on their income by the following methods given below: 

    1. Through Bank Fixed Deposits: Bank Fixed Deposits are the best investment options for NRIs as they have a lot of benefits like high interest, liquidity, and safety. You can also go for the tax saver FD, which allows you to make 1.5 lakhs INR deductions under Section 80C of the Income Tax Act, 1961. 
       
    2. National Pension Scheme (NPS): NPS allows you to save your money for future retirement. You can open an NPS account with the help of your bank or online and can add up to 1.5 lakh INR annually, and the contributions you make are allowed for a deduction under section 80C of the Income Tax Act, 1961. 
       
    3. Equity Linked Savings Scheme (ELSS): ELSS allows tax benefits to the investors, which is a type of mutual fund. Through investment in the ELSS via an NRE or NRO account, you can get a deduction of INR 1.5 lakh in a year under section 80C of the Income Tax Act, 1961. 
       
    4. Insurance: It is also the best tax savings option for the NRI, which allows you to get a deduction of up to 1.5 lakh under section 80C, and up to 25,000 INR under section 80D of the Income Tax Act, 1961.  

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