Understanding Section 80C: Income tax benefits for NRIs and their dependents
Live MintMy daughter is 21 years old, dependent and has no income of her own. I would like to transfer some of my incometo her savings bank account and invest in her name and through that account to save on my taxable income and tax outgo. Your understanding is not entirely correct about the eligibility of non-residents to claim deductions under Section 80 C. Residents, and non-residents are equally entitled to avail of the tax benefits under Section 80 C, provided the old tax regime opts. However, a non-resident is not entitled to open a PPF account or invest in NSC, Senior Citizen scheme and post office monthly scheme except this restriction, your daughter can invest in other tax saving avenues available under Section 80 C like ELSS, ULIPs of mutual funds, payment of life insurance premium if she has a life insurance policy or invest in tax saving FD, repayment of home loan etc. Please note that just by transferring income from your account to her savings bank account, you cannot avoid the tax you are otherwise liable to pay on such income as any income arising on money so transferred shall be included in her income and taxed in her hand.
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Can NRI claim deduction u/s 80TTA for interest on bank savings account in India?
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