Saturday, April 1, 2023

How NRIs are able to optimize tax savings when they live and earn abroad


Being a non-resident Indian there is a dubious record of having to pay tax twice. If you live and reside abroad the income would be taxed abroad. But if you have assets in India then you may be taxed in India. So it makes sense to seek expert help of NRI tax planning firms in India, as they can throw light on the deductions and provisions available to you.

Numerous ways are there by which a non- resident India can save on the taxes front. Let us get to the popular tips on the amount of taxes you are willing to pay

Cash in on the power of deductions

Some of the basic deductions that Indians are entitled are not availed by the non- residents of India. It is not possible to obtain tax deductions by investing in national savings certificate or PF fund. Yes you would be having access to national pension certificate and the tax deductions relating to it. There are certain tax deductions available on contributions.

Applying for a PAN card

A Permanent account number certifies you to be a tax payer in India. The use of PAN helps to avoid income tax fraud. Even to claim an income tax refund you need a PAN number. Income obtainable above a certain source would be subject to tax deducted at source. If you fail to give your PAN card number while investing in India there is a greater possibility of tax being deducted at source. If you obtain a PAN card you will obtain less tax at source. A more noteworthy chance of expense is being deducted at source. Assuming that you acquire a PAN card you will get less expense at source.

Maintaining your NRI status

When you are residing abroad, the income that is mad abroad is not taxable in India. But if there is a doubt on your non- resident status the income can be taxed by the income tax officials. If you are looking to make sure that the tax affairs are not messing then get in touch with a NRI investment consultant Pune who can guide you with a roadmap ahead.

Plan your visits to India in such a way so that you do not lose out on your NRI status.

Benefit from provisions

An effective way to optimize your tax as a non- resident Indian, is to cash in on the  benefits of tax provisions for long term assets . This is purchased in foreign currency. 

When you are selling or buying assets you are making a profit or a loss. It is not possible to deduct capital gains against the sale or transfer of foreign assets. But you will be able to obtain some exemptions under section 115F of the income tax act.

To conclude being a non- resident Indian you may claim tax deductions on your Indian property. If you are paying interest on the property tax or home loan then you will be eligible for a tax deduction. This would make owning a property a good option  of non- residents to be investing in India.


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