If you’re an only employee in a house then you should made a policy to purchase a life insurance to give money to his family. In this article you are going to know about Income tax. There are many insurance policies in our country and different plans based on their age and enjoy income tax benefits of your insurance policy. Tax benefits are basic savings that the government allows you to claim to lower your tax bill. India has various tax saving options under the new and old tax regimes for the 2023-24 financial year.
For example, under the new tax regime, you can save tax if your employer contributes to your National Pension System (NPS) account. If you work for the government, you can claim 14% of your salary, if you are not a government employee, you can claim 10% of your salary as an exemption1. Another way to save on taxes is to invest in certain savings plans or spend on specific expenses. For example, if you transfer money to the Fire Veterans Corps Fund, you can claim that as a deduction.
Also, if you receive any money under the Firepath Scheme, it is exempt from tax. These benefits help you save money and are designed to encourage you to invest in your future1. It’s important to know these benefits so you can make smarter choices and save more of your hard-earned cash.
[ Also Read: How To Claim TDS]
Sections under which you can claim Income tax deduction:
A tax payer can get amount of 150000 under section 80C for every year and it will give 25000 of medical insurance of under section 80D and made a payment of a health checkup. Senior can get insurance of 25000 in name of a senior citizen and it can be calculated as @Income tax Department
Taxable income = Gross total income-Tax deduction u/s 80C to 80U
Important things to know before section 80C to 80U:
- Under chapter VIA, no deductions shall be allowed from following income
- Long term gains of family
- Under section 111A short cum gains can be covered
- Under section 115BB money from winning horses, races
- 115A, 115AB, 115AC, 115BBA and 115D
Under section 80C an individual can claim fund.
- Premiums of Life insurance
- Funds in public provident funds
- National savings certificate
- Two children fees
- Deposit scheme in post office
- Tax deductions exemptions persons
Tax deduction can be done in name of a person whose is paying income tax and tax is paid in name of a person in family members and no deductions can be done to persons of other family members
Holding period to claim deduction
- There is a minimum time for holding a deposits to claim deductions u/s 80C
- For ULIP of UTI or LIC: 5 years should be minimum holding period
- Life insurance policy: 2 years should be minimum holding period
- Senior citizen scheme: 5 years should be minimum holding period
Restrictions:
Based on policy there are certain restrictions in any policy and there will be an assumption if you donate money to any organizations.
- Policies issued before 31st March 2012 should have 20% tax deduction
- Policies issued before 1st April 2012 should have 10% tax deduction
- Policies issued before 1st April 2012 should have 15% tax deduction
- Important things to know before claim money under 80D:-
- Cost of medical bill paid by mode of cash
- Any scheme notifies by central government
- Health checkup money
- Money paid on all health bill
Income Tax deductions exemptions persons for 80D:
Tax deduction can be done in name of a person whose is paying income tax and tax is paid in name of a person in family members and no deductions can be done to persons of other family members
Limitations under section 80D of income tax:
- Maximum limit up to 25000:
- In this insurance will be given up you will be 25000 in case of preventive health checkup for his dependent for children/spouse
- 50000 will be given in case of his death to his family members and it is small in case of elder persons.
Hindu undivided family:
Medical insurance will be increases in case of a paid in name of senior citizens and medical occurred on health of a senior citizen person.
Exemption under section 10(10D)
The amount received from a life insurance policy, whether as maturity benefit, death benefit, bonus, surrender value or otherwise, is exempt from tax under section 10(10D) of the Income Tax Act, subject to certain conditions.
The exemption is not available if the premium exceeds 10% of the sum assured for policies issued on or after April 1, 2012 and 20% of the sum assured for policies issued before that date. The exemption is also not available for any amount receives under a keyman insurance policy or an employer-employee group insurance scheme.
Frequently Asked Questions
Q .What is Form 26AS?
A .It is a consolidated annual tax statement of your income and taxes deducted.
Q .How to file revised ITR online?
A Login to e-Filing portal, select “e-File” and “Income Tax Return”, choose “Revised Return”.
Q .How to respond to income tax notice?
A .Read the notice carefully, check the facts, gather documents, and reply online or offline.
Q .What happens if I miss income tax filing deadline?
A . You may face penalty, interest, and loss of benefits. File belated return as soon as possible.
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