YOUR QUERIES: INCOME TAX: Senior residents can declare tax deduction on medical payments as a lot 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 is not essential to execute a gift deed.

By Chirag Nangia

I retired in November 2020 and took a Mediclaim Protection in February 2021. In between, I’ve incurred some medical payments on preventive properly being confirm ups, docs’ session prices and dental treatments. Can I declare tax exemption on these payments (incurred out of my very personal pocket) after retirement, and sooner than taking any medical insurance coverage protection cowl, and beneath which A part of 80D? Extra, can the worth of medicines even be included for tax exemption beneath medical payments for Half 80D?
—A Sen
According to Half 80D of the Income Tax Act, senior residents may avail a deduction of as a lot as Rs 50,000 for value of premium in path of medical insurance coverage protection protection. This prohibit comprises payments incurred on preventive properly being checks matter to the interior prohibit of `5,000. Nonetheless, if no amount is paid as premium on medical insurance coverage, medical payments incurred by such senior residents may be claimed beneath Half 80D, matter to the monetary cap of Rs 50,000. To say deduction, the entire medical expenditure need to be paid in each different mode other than cash (i.e. by the use of channels resembling financial institution card, debit card, and net-banking or totally different digital channels). Medical payments may embrace medical consultations, medicines, hospitalization payments, and so forth. Accordingly, for FY 2020-21, you each declare deduction of medical payments incurred or medical insurance coverage premium paid, matter to the ceiling of Rs 50,000.

I am a senior citizen. I want to change some shares to the Demat accounts of my daughter and NRI son as a gift. I am going to inform them of this change by the use of e mail, with advice to guard the message to be confirmed to any authorities, if and when required. Is it sufficient to stay away from any drawback in future?
—Rakesh Saxena
Since shares are thought-about “movable property”, it is not essential to execute a gift deed. Nonetheless, in order to create a licensed report, it is best to execute one. A straightforward acknowledgement might serve the goal. Extra, please phrase that capital gadgets are permitted to be transferred to NRI by means of reward matter to satisfaction of positive circumstances and pointers of RBI on this regard.

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

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