Tax Hacks-Video

What are the deduction limits under section 80D for health insurance?

You are eligible to avail a tax deduction up to Rs. 25,000 in a financial year, under Section 80D for the premiums paid against a medical insurance policy. The deduction is available on the health plan premiums paid to cover yourself along with your spouse and children, provided none of the beneficiaries of the plan is above 60 years of age.

In case, you are paying the health insurance premium for your parents (ageing 60 years or more), you can claim tax savings up to Rs. 50,000 in the given fiscal year. Thus, you can accrue tax deductions up to Rs. 75,000 as deductions under 80D, if you are paying a health insurance premium for both your family and senior citizen parents.

Further, you are also entitled to receive tax reduction on preventive health checkups annually. Therefore, you can claim any expenses incurred for preventive health checkups for your family and parents, up to …

I donated money to Kerala Flood relief fund this year. Am I eligible for any tax deductions?

Donations that were made to specific relief funds and registered charitable institutions are eligible for tax deductions under Section 80G of the Income Tax Act. Donations made by cheques, DDs, cash or bank transfers are eligible for deductions. However, cash donations more than Rs. 2000 are not eligible for tax deductions.

If you made donations in kind like ordering food supplies or any other products for the people of Kerala afflicted by the floods, then you cannot avoid any tax deductions.

While filing for returns make sure that you have a receipt of the donation with name, PAN number and address of the organisation that you are making the donation to.

Tax Deductions Available

There are two types of deductions available on donations made to Kerala flood relief – one with a limit and other without a limit. The limit on deductions mainly depends on the institutions or t…

What are the deductions available for home loan repayments?

If you have taken a home loan, you may be eligible for deduction under section 80C and 24(b). While the principle you repay on the home loan is eligible for deduction under section 80C, homeowners can also avail tax deductions for up to a maximum of Rs. 2 lakhs on the interest paid against their home loan. Whether you reside in the residential property or leave it vacant, you are eligible to receive the amount mentioned above as tax deductions.

On the other hand, if you give out the property on rent, you can claim a deduction for the entire interest on the home loan. However, your deduction on the home loan interest repayment; however, can only be up to Rs. 30,000 instead of the higher limit of Rs. 2 lakhs, if both the following conditions are fulfilled: