YOUR QUERIES: INCOME TAX: Senior residents can declare tax deduction on medical bills as much as Rs 50,000

Since shares are considered “movable property”, it is not mandatory to execute a gift deed.

Since shares are considered “movable property”, it is not mandatory to execute a gift deed.Since shares are thought-about “movable property”, it isn’t necessary to execute a present deed.

By Chirag Nangia

I retired in November 2020 and took a Mediclaim Coverage in February 2021. In between, I’ve incurred some medical bills on preventive well being verify ups, docs’ session charges and dental remedies. Can I declare tax exemption on these bills (incurred out of my very own pocket) after retirement, and earlier than taking any medical insurance coverage cowl, and beneath which Part of 80D? Additional, can the price of medicines even be included for tax exemption beneath medical bills for Part 80D?
—A Sen
In line with Part 80D of the Revenue Tax Act, senior residents could avail a deduction of as much as Rs 50,000 for cost of premium in direction of medical insurance coverage coverage. This restrict contains bills incurred on preventive well being checks topic to the inner restrict of `5,000. Nonetheless, if no quantity is paid as premium on medical insurance, medical bills incurred by such senior residents could also be claimed beneath Part 80D, topic to the financial cap of Rs 50,000. To say deduction, all of the medical expenditure have to be paid in every other mode aside from money (i.e. by way of channels resembling bank card, debit card, and net-banking or different digital channels). Medical bills could embrace medical consultations, medicines, hospitalization bills, and so on. Accordingly, for FY 2020-21, you both declare deduction of medical bills incurred or medical insurance premium paid, topic to the ceiling of Rs 50,000.

I’m a senior citizen. I wish to switch some shares to the Demat accounts of my daughter and NRI son as a present. I’ll inform them of this switch by means of e mail, with recommendation to protect the message to be proven to any authorities, if and when required. Is it enough to keep away from any problem in future?
—Rakesh Saxena
Since shares are thought-about “movable property”, it isn’t necessary to execute a present deed. Nonetheless, so as to create a authorized report, it’s best to execute one. A easy acknowledgement may serve the aim. Additional, please word that capital devices are permitted to be transferred to NRI by the use of reward topic to satisfaction of sure circumstances and pointers of RBI on this regard.

The author is director, Nangia Andersen India. Ship your queries to fepersonalfinance@expressindia.com

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