Income tax

YOUR REQUESTS: INCOME TAX: Seniors can claim a tax deduction on medical expenses up to Rs 50,000

Since the shares are considered “movable property”, it is not compulsory to sign a deed of gift.

By Chirag Nangia

I retired in November 2020 and took out a Mediclaim policy in February 2021. In the meantime, I incurred medical bills for preventive checkups, medical consultation fees, and dental treatment. Can I apply for a tax exemption on these expenses (incurred out of pocket) after retirement, and before taking out medical insurance coverage, and under which section of 80D? In addition, can the cost of drugs also be included for the medical expense tax exemption for section 80D?
—A senator
According to Article 80D of the Income Tax Act, the elderly can benefit from a deduction of up to Rs 50,000 for the premium payment of a medical insurance policy. This limit includes expenses incurred for preventive health checks subject to the internal limit of 5,000. However, if no amount is paid as a health insurance premium, medical expenses incurred by these seniors can be claimed. under Section 80D, subject to the monetary limit of Rs 50,000. To claim the deduction, all medical expenses must be paid other than in cash (i.e. through channels such as credit card , debit card, net-banking or other digital channels). Medical expenses can include medical consultations, medication, hospital costs, etc. Consequently, for the 2020-21 fiscal year, you are requesting either the deduction of medical expenses incurred or the health insurance premium paid, subject to the ceiling of Rs 50,000.

I am an elderly person. I want to transfer shares to my daughter’s and son’s NRI Demat accounts as a gift. I will notify them of this transfer by email, with advice on keeping the message to show to all authorities, if and when necessary. Is this enough to avoid any difficulties in the future?
—Rakesh Saxena
Since the shares are considered “movable property”, it is not compulsory to sign a deed of gift. However, in order to create a legal case, it is best to run one. A simple acknowledgment of receipt can also serve the purpose. In addition, please note that capital instruments may be transferred to NRI as a grant subject to satisfaction of certain conditions and guidelines of RBI in this regard.

The writer is director, Nangia Andersen India. Send your questions to [email protected]

Get live stock quotes for BSE, NSE, US market and latest net asset value, mutual fund portfolio, see the latest IPO news, top IPOs, calculate your tax with the help of the income tax calculator, know the best winners, the best losers and the best equity funds in the market. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay up to date with the latest news and updates from Biz.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *