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- NRIs are supposed to pay taxes to India as well
- There are tips for this tax saving
- NRIs can use many methods to save taxes
Non- Resident Indians (NRIs) are supposed to pay taxes on income earned in India during a particular financial year. So, any income that has been either accrued or received in India shall form part of the taxable income of NRI. If you have recently moved abroad, you may be worried about ensuring your tax compliance in India for the assessment year 2018-19. Moreover, you need to do tax saving in India with twofold goals- decrease tax liability and increase return on investments. While tax saving is essential, you should strive to invest prudently to reap the maximum benefit of the savings.
If you are an NRI and searching for investment options with tax saving benefits, you should realise that there are various options for the same. Take a look at these tax saving options for NRIs in A.Y. 2018-19:
For money to be parked for short-term or long-term investments, NRI can have any one of three following types of banks accounts:
- Non-Resident External Rupee Account (NRE): In this type of account, your funds in foreign currency are converted into Indian rupees and the rate prevailing at the time of conversion is applicable. The benefit here is-Interest earned on NRE account is exempt from tax for an individual who qualifies as a ‘person resident outside India’ under the exchange control law.
- Non-Resident Ordinary Rupee Account (NRO): Interest earned on NRO account (savings or fixed) is fully taxable. A deduction up to Rs 10,000 may be claimed for interest earned on savings account while filing the tax return.
- Foreign Currency Non-Resident Bank Deposit (FCNR): It is a term deposit or fixed deposit account, where NRIs can deposit their money in foreign currency. The deposits canbe made for a minimum maturity period of one year and maximum maturity period of 5 years. The interest earned under this account is tax-free, whereas the principal amount is taxed under wealth tax.
Other popular means of claiming a deduction from gross total income is via Section 80C.
Deductions Under Section 80C
NRIs can invest in term insurance, a type of life cover, which provides financial coverage to the insured. If the insured expires during the tenure of the policy, then death benefit is payable to the nominee. A deduction of Rs 1.5 lakh is allowed for the premium paid towards term insurance plans as per Section 80C. This deduction can be claimed where the plan has been purchased in the NRI’s name or the name of his/her spouse. Moreover, purchasing online insurance plans like term plans has turned out to be simple, hence you can easily go for these online insurance plans and avail tax benefits on the premium payable.
Unit Linked Insurance Plans (ULIPs)
Unit Linked Insurance Plans offer duals benefits of life insurance and investment. Some part of the premium is utilised as insurance coverage to the policyholder, while the remaining amount is invested in various debt and equity schemes. As with all life insurance plans, the amount invested in a ULIP is available for tax deductions for NRIs.
Subject to certain conditions, the premium paid for ULIPs is allowed as a deduction under Section 80C of the Income Tax Act. ULIP premium can be deducted from your taxable income up to Rs 1.5 lakh, which is currently the permissible limit.
Loan to Buy a Home
Buying a house property is beneficial for you (NRI) as the interest income and principal income will allow for a tax rebate. The total deduction for interest payment on home advances is Rs 1.5 lakh, whereas the principal amount repayment on home loan already qualifies for a tax rebate of Rs 1 lakh.
Equity Linked Mutual Fund schemes (ELSS)
For NRIs, ELSS also offers similar benefits under Section 80C of the Income Tax Act. ELSS are equity-linked mutual fund schemes investing in a diversified portfolio of Indian stocks. ELSS schemes can be purchased online, yet remember, there is an element of risk in ELSS as money is put into equity markets. Be that as it may, they are tax efficient instruments for NRIs.
National Pension Scheme (NPS)
You can subscribe to NPS if you have retained your Indian citizenship and planned to retire in India. You can contribute to NPS from NRE and NRO accounts. However, the pension needs to be received in India only and cannot be repatriated. Your investment up to 1.5 lakh can be used to avail tax deductions.
NPS comes under EET tax structure (Exempt-Exempt-Tax) and is a cost-effective, government-backed retirement savings plan. All the contributions and accrued capital gains are exempt from tax; however, withdrawal is subject to tax.
Other Allowable Deductions:
Health Insurance- Deduction under Section 80D
NRIs can take health insurance from Indian companies for themselves or their family members and claim a deduction for the premium paid under Section 80D. Additionally, health plans like cancer insurance plans serve as monthly income plan with different payout options made available upon diagnosis of the disease. The availability monthly income plan feature offers a comprehensive financial coverage for the life assured as well as his family.
The deduction for health insurance is up to Rs25,000 for insurance of self. You can claim a deduction for insurance of parents up to Rs30,000 if their parents are a senior citizen (above 60 years) and Rs25,000 if the parents are below 60 years.
Education Loan- Deduction under Section 80E
Like resident Indians, NRIs can also take educational loans and claim tax deductions on the interest paid under section 80E. This loan might be either taken for higher education for self, spouse or children.
Besides, there is no limit on the amount which can be claimed as a deduction, and deduction is offered for a maximum of eight years or till the interest is paid, whichever is earlier.Additionally, no deduction is allowed on the principal repayment of the loan.
As an NRI, you are qualified for tax exemptions on specific investments in India. Before investing, you should make an informed choice by understanding tax laws in India, in addition to the nation of your residence. Moreover, you must select tax saving instruments which would enable repatriation of income at maturity. Your investment decisions should consider your life objectives and also repatriation restrictions on investments in India.
Elon Musk-owned Tesla has started to push a new Full Self-Driving (FSD) Beta software update -- version 10.6 -- to its fleet with improved object detection.
According to the auto-tech website Electrek, the company is starting to push a new version of the FSD Beta to owners in the US with a safety score of 98 and up.
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The company said that the new update brings improved object detection network architecture for non-VRUs (e.g. cars, trucks, buses), seven per cent higher recall, 16 per cent lower depth error and 21 per cent lower velocity error for crossing vehicles.
It also brings a new visibility network with 18.5 per cent less mean relative error, the report said.
The company also said that it allows more room for longitudinal alignmentUnsplash
Also read: Tesla adding cloud sync feature
The company also said that it allows more room for longitudinal alignment during merges by incorporating modelling of merge region end.
The software enables the vehicle to drive autonomously to a destination entered in the car's navigation system, but the driver needs to remain vigilant and ready to take control at all times.(IANS/PR)
(Keywords: Tesla, FSD Beta)
A chewing gum laced with a plant-grown protein serves as a "trap" for the SARS-CoV-2 virus, reducing viral load in saliva and potentially tamping down transmission, finds a new study.
The researchers exposed saliva samples from Covid-19 patients to the ACE2 gum and found that levels of viral RNA fell so dramatically to be almost undetectable, indicates the study published in the journal Molecular Therapy.
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"SARS-CoV-2 replicates in the salivary glands, and we know that when someone d sneezes, coughs, or speaks some of that virus can be expelled and reach others," said researcher Henry Daniell from the University of Pennsylvania in the US.
"This gum offers an opportunity to neutralise the virus in the saliva, giving us a simple way to possibly cut down on a source of disease transmission," Daniell added.
To test the chewing gum, the team grew angiotensin-converting enzyme 2 (ACE2) in plants, paired with another compound that enables the protein to cross mucosal barriers and facilitates binding, and incorporated the resulting plant material into cinnamon-flavoured gum tablets.
Incubating samples obtained from nasopharyngeal swabs from Covid-positive patientsUnsplash
Also read: 1 in 3 COVID-19 survivors suffer mental illness
Incubating samples obtained from nasopharyngeal swabs from Covid-positive patients with the gum, they showed that the ACE2 present could neutralise SARS-CoV-2 viruses.
Those initial investigations were followed by others, in which viruses, less-pathogenic than SARS-CoV-2, were modified to express the SARS-CoV-2 spike protein.
The team observed that the gum largely prevented the viruses or viral particles from entering cells, either by blocking the ACE2 receptor on the cells or by binding directly to the spike protein.
The research team is currently working toward obtaining permission to conduct a clinical trial to evaluate whether the approach is safe and effective when tested in people infected with SARS-CoV-2.(IANS/PR)
(Keywords: Covid-19, SARS-CoV-2 virus, chewing gum)
After the release of HUH Token’s White Paper and the buzz around the soon-to-be launching cryptocurrency, it’s no wonder that the crypto world is wondering whether or not Shiba Inu’s year of meme coin supremacy is coming to an end.
Shiba Inu rose to crypto fame in the august of 2020 and just a little over a year from that point, where Shiba Inu knocked Dogecoin off top dog spot… it appears that HUH Token could be set to take the cryptocurrency world by storm on its launch: Monday December 6th. And with it the possible end of Shiba Inu’s reign as the supreme meme coin.
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Though, you might be wondering how it is that HUH Token could do that, possibly end Shiba Inu’s year of the dog? Although it seems, that a glimpse at HUH Token’s White Paper, a listen to the shouts of the cryptocurrency fanatics and a read of this article could answer that for you.
Shiba Inu Really Passing on the Torch?
Over the past year, Shiba Inu performed remarkably well on the cryptocurrency market after using the power of the media and its influence to take Dogecoin off the top spot.
Though it seems, that with buzz around the unique cryptocurrency, HUH Token, could be prized to take Shiba Inu from that top spot and there is a plethora of reasons why.
HUH Token’s White Paper release demonstrated a detailed explanation of HUH Token’s aims, goals, technology and what lies at their golden centre- HUH Token Holders, HUH Nation and as HUH Token grows the MetHUH.
This is what could set Shiba Inu and HUH Token lightyears apart… HUH Token’s revolutionary prospects.
HUH Token intend to be a decentralised metaverse where everyone gains from whatever data they’ve generated and that means that HUH Token have discovered what the currency of influence is and that is you and HUH.
Though the two-days-till launch cryptocurrency, HUH Token, doesn’t stop there, in fact, the White Paper outlines how HUH Token could be one of, if not the only, safer cryptocurrency on the crypto market today.
This would be achieved by harnessing HUH Token’s multichain technology that uses Ethereum and Binance blockchains, yield generating contracts (Binance Smart Contract) and an always-open bug bounty.
These steps help to bring a level of safety to HUH Token holders and their growing HUH Nation as a whole… as well as autonomising HUH Token holders in the process, where it appears that individuality is supported by HUH Token.
Though it seems that Shiba Inu might still have some years in it yet, but HUH Token seem to be able to hold their own in a dog fight to the top.
The Future is Utimeme
As mentioned above HUH Token enjoy the essence of duality, because together we are stronger… for that reason HUH Token’s creators envisioned and realised the function and technology of a utimeme cryptocurrency, that has the power and influence of a meme coin but the usability of a utility coin and this where HUH Token is created.
This alone could see Shiba Inu’s year of the dog come to an end, but it’s always advised to do your own research before becoming a holder in any cryptocurrency.
This being said, there are two days left before HUH Token’s Monday December 6th launch and there might not be that much time left for you to benefit from HUH Token’s presale and receive a 35% bonus on top of $1000 deposit.
I for one can’t wait for HUH Token’s launch as it feels like something great is about to happen for the cryptocurrency world.
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(Disclaimer: This article is sponsored and includes some commercial links.)