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Yes, NRIs are imposed with several exemptions and deductions under the Indian Income tax laws. These deductions come under the sections 80C, 80D, 80G, 80TTA, which are easily available to NRIs for various purposes like donations, investments, insurance premiums, and interests on savings accounts.
Section 80C: Income tax deductions to NRIs up to 1.5 lakh INR for various purposes like insurance premiums, investments, and principal on home loans.
Section 80D: It is for the deductions for the health insurance premiums.
Section 80G: It includes donations to charitable institutions and provides the tax benefits under section 80G.
Section 80TTTA: Income tax deductions up to 10,000 INR on the savings account in India.
Here are the allowable deductions for the NRI under section 80C:
NRI can also get a deduction under Section 80E, which is interest paid on the education loan. This loan was taken by the taxpayer for higher studies, and under this section, there is no limit on the amount claimed, which is a maximum of eight years or until the interest paid, whichever is earlier from both conditions.
NRI can also claim the available deductions to the resident, including dependent children, spouse, and parents, for the income generated from the house property in India. Under this section, you can also get a deduction on the interest paid on the home loans and property tax paid.
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There is also an Income tax deduction under section 80D, which is available for the premium health insurance. Under this, a taxpayer can get a deduction of up to 25,000 INR for the child, spouses, and NRI can also claim a deduction for their parents, which is up to 25,000 INR.
However, there is a limit for the deduction is 50,000 INR, and if the insurance premium is paid for the senior residents, then Senior NRI citizens cannot get the deduction under section 80D.
Under the existing limit, a deduction is allowed up to INR 5,000 for the health checkups, and a medical spending of up to INR 50,000 can also be claimed under Section 80D for the person who has a health insurance policy.