Interest & 80C Deductions Allowed to Non Residents Too!

The deduction u/s 80C of the I T Act of Principal Amount and LIC premium is subject to restriction that it can not exceed Gross Total Income and that maximum allowed is Rs 1,00,000. Exact wording of the provision contained in Section 80C simply states that the deposit should be made in the financial year for which income is taxable. In fact previous restriction that the said deposit should be made out of taxable income , has also been withdrawn. Thus , as the provision stands today, a resident or non resident whose income is taxable under the I T Act can claim deduction u/s 80 C of the I T Act for any amount limited to Rs 1,00,000 for any specified investment made during the financial year. The extract of the relevant portion of Section 80C is given as under
“80C. (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed one lakh rupees. (2) The sums referred to in sub-section (1) shall be any sums paid or deposited in the previous year by the assessee”