How can non-resident Indians save tax on their investment income?

[Knowlopedia]

Non-resident Indians can save tax on their investment income from India. One of the ways you can do this is through a post-dated cheque . They have to be issued by any bank in India and have an expiry date of three years from the date of issue. The expiry date is the only thing that distinguishes a post-dated cheque for tax savings purposes from a regular cheque. There's no need for any other details, but there is one key thing that non-resident Indians need to know, which is that they are not entitled to interest on these cheques.

Non-resident Indians investing in Indian mutual funds can arrange for post-dated cheques to be issued in their name. They have to have the cheque issued by any local bank for them to be tax saving instruments.

As soon as a non-resident Indian gets a notice from a mutual fund , he has to respond with the information required by the tax authorities on his transaction within 30 days of receiving it . The total expense incurred in complying with this notice must not exceed Rs 1,000 . If it does, it would attract a penalty of up to Rs 3,000 .