| Dear Ragesh Nambiampurathu
With the onset of the New Year, you may be looking for investment options to save tax.
We'd like to update you about the investment approaches you can implement to do effective tax planning. Given below is a precise note on the two sections which are most relevant to your personal income tax planning.
Section 80D of the Income Tax Act, 1961 allows you to claim tax deductions for Health Insurance taken for yourself and your family, including parents. Given below is an illustration of the Tax benefit**.
| | Health Insurance Premium | Tax Deduction u/s 80D** | | For yourself and your family | Rs. 15,000 | Rs. 4,635 | | For your Parents (above 65 yrs.) | Rs. 20,000 | Rs. 6,180 | | Total (for self and parents above 65) | Rs. 35,000 | Rs.10,815 | The maximum deduction that can be claimed is Rs. 15,000 for you and your family and an additional Rs. 15,000 for health insurance bought for your parents (in case your parent/s are Senior Citizens Rs. 20,000). Thus, you can deduct up to Rs. 30,000 from your taxable income for medical insurance premiums paid and save Rs. 9,270.
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