A non resident can opt for 115BAC?

12-02-2024

Non-Resident Indians (NRIs) have the option to choose between the old tax regime and the new tax regime under Section 115BAC of the Income-tax Act. Under the old tax regime, NRIs can avail of certain exemptions, deductions, and allowances to reduce their taxable income.

One such exemption is under Section 80C of the Income-tax Act, where NRIs can claim deductions of up to Rs. 1.5 lakh for investments made in specified instruments. These instruments include children’s tuition fees, premium payments for Life Insurance Corporation (LIC) policies, Unit Linked Insurance Plans (ULIPs), Equity Linked Savings Schemes (ELSS), and principal repayments of a home loan.