MEDICLAIM POLICY : DEDUCTION UNDER SECTION 80D

Posted by & filed under Income Tax.

MEDICLAIM POLICY : DEDUCTION UNDER SECTION 80D
 
A Mediclaim policy is one that refers to the medical insurance of individual, HUF, spouse, parents or dependent children, also known as health insurance .The section 80D of Income Tax Act provides for deduction of the payment made subject to the premiums of such medical policies. This exemption is over and above the deductions of Rs.1,00,000 under the section 80C. Medical insurance is vital in order to insure the health and safety of the family members, and it comes to aid in times of illness and makes up for your medical expenditure.
 
The medical premium varies with age, and as you grow older the premium increases.(Hence it is recommended that a senior citizen gets himself medically insured) The insurance can take place at any point of time between the age span of 18-59 yrs. As per the budget 2011-12, a senior citizen is a person of the age 60yrs or more. Before that, 65 yrs and more was considered as the age for senior citizens) the policy can be in the name of any of the following persons:
Individual or the taxpayer
 
Parents: Parents of the individual and of the spouse may be covered under this irrespective of their dependence on the assessee.
 
Dependent children: legitimate children or legally adopted children fall under this category and may be insured by the taxpayer. This includes male child who is unemployed, under the age of 25 yrs and he is a bonafide student fully dependent on the assessee . In case of a girl child, she is considered d as dependent until she is unmarried.
 
And in case of an HUF, any family member can be insured.
 
The total amount of deduction included under the section 80d mediclaim policies is Rs.35000. It is split into parts as shown below:
For an individual:
 
Basic deduction: The insurance premium of self, spouse and children is covered under this amount. Maximum deduction upto Rs.15000 is allowed .however, a deduction upto Rs.20000 is allowed in case the insured person is a senior citizen.
 
Additional deduction: Includes the medical premium paid for parents and a maximum deduction upto Rs.15000 is allowed. If the parent in this regard is a senior citizen then the amount is increased upto Rs.20000.
 
For HUF:
The premium can be paid for any member of HUF and the maximum deduction of Rs.15000 is permissible. Only when the person is a senior citizen the amount available for deduction is Rs.20000.
 
The medical premium is paid under medical insurance scheme of General Insurance Corporation approved by the Central Government or by any other insurer approved by IRDA (Insurance Regulatory and Development Authority).. Before 1st April 2009, the only mode of payment allowed was cheque. The payments for such premiums can now be made via any mode other than cash
 
 
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Tuition fees as a deduction under section 80C

Posted by & filed under Income Tax.

Tuition fees as a deduction under section 80C
The section 80c provides deduction from the taxable income for the tuition fees paid for his/her children .The upper limit for the deduction under this section is Rs 1 lakh. Parents are allowed to claim the deduction for their children’s tuition fees. This deduction is strictly available only on the tuition fees paid and not the exam fee, sports fee, lab fee, admission fee or the hostel fee. A parent is individually allowed to claim deduction for two children , thus both the parents can together claim deduction for four children. The deduction claim is permissible for only full time courses and not part time, coaching classes, distance learning or private tuitions. This however includes tuition fees for playschools and pre-nursery. The deduction is available on the amount paid by the individual and the period for which the payment is made is not to be considered.
 
 
 
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Gujarat Profession Tax Slab Revised 1st Apr 2013

Posted by & filed under Profession Tax.

Dear All,

Gujarat state Profession Tax Slab Revised 1st Apr 2013 where in the first slab has been removed

Now the New Slab W.E.F from 1st Apr-2013 will be as listed below

i) Less than Rs. 3000/ Zero
(ii) Rs. 3000/- or more but less than Rs. 6000/ – 0

(iii) Rs. 6000/- or more but less than Rs. 9000/- 80/-
(iv) Rs. 9000/-or more but less than Rs. 12000/- 150/-

(v) Rs. 12000/- or more. 200/-

The details Notification of the same is enclosed below:-


Gujarat State tax on Profession-revised from 01-04-2013
 

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Karnataka Minimum wages revision 2013-2014

Posted by & filed under Minimum Wages-Karnataka.

Dear All,

I am attaching here with Karnataka Minimum wages revision 2013-2014 here i am attaching some of the Major industies Minimum wages revision 2013-2014

Shop &  Establishmment :- Shops and commercial establishment.

Security Agency :- Security agency

Hotel Industry:- Hotel Industry Minimum wages

Film Industry:- Film industries Minimum wages

Engineering Industry:- Engineering industry Minimum wages

Further If any other Industry requirement pls Let us Know we will Provide the Same
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Benefit of Joint Home Loan and its Tax benefit

Posted by & filed under Income Tax.

Benefit of Joint Home Loan and its Tax benefit
Buying a house has always been a bit of financial trouble for many. So, banks come to rescue and aid people with a home loan by facilitating the funding. Two earning members can come together to buy a house and share the loan. Joint home loan is the ultimate way out! Earning members of the family; Spouse, siblings, parent & child either can jointly issue a loan from the bank. This will ease off the burden of loan borrowing. Besides, there is an added major advantage to this joint loan borrowing; the co borrowers can share the tax benefits under the Income Tax Act.
Benefits of joint home loan
  • Two earning members will save a part of their income from taxation
  • The debt burden is minimized as there two people will share the loan
  • Both, Principle and interest payable are exempted from tax under the section 80C and section 24 respectively of the Income Tax Act.
Rules for seeking a joint home loan:
  • A joint home loan can be taken by minimum 2 and maximum 6 members
  • Not all family members are eligible to take joint home loan, generally blood relatives are allowed
  • The lender defines the relationship between co borrowers in order to be eligible to seek the joint loan
  • KYC documents should be submitted that contain identity and address proof of the loan applicants
  • Documents containing the proof of ownership and income proof of borrowers are also required.
Repayment of joint home loan:
  • Either the EMI can be paid via a joint account that is held by the co borrowers
  • Payment made by means of two different accounts for the same EMI is not allowed. However they can share total no. of installments. The payment should come from come from borrowers jointly.
The maximum tax benefit available to a single person who seeks home loan is however 1, 50,000 for each co borrower. Hence it is advisable to get a break up of tax benefits on stamp paper prior to issuing the loan. The agreement will specify the share of the ownership as well as that of the home loan. This agreement will contain the share of the ownership along with that of the home loan issued by them.
The co-borrowers must decide the ratio in which they will borrow the loan. Supposing the ratio decided is 60:40 then the tax benefits availed by them will be in the same ratio. The former can avail a 60% of tax benefit on the maximum permissible exempted limit; while the latter, 40%.
Now, it is way easier and beneficial to manage the funding for your new home by applying for loan. The income tax benefits, plus the lesser burden on a single person, in terms of loan repayment. Also, it enhances your eligibility as a loan seeker because the income of two people is clubbed; the bank finds it convenient to grant the loan.
 
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