8 Useful Income Tax Deductions for F.Y. 2022-23| With Automated Income Tax Preparation Software All in One for the West Bengal Government Employees for the F.Y.2022-23

 8 Useful Income Tax Deductions for F.Y. 2022-23| The Income Tax Act sets out several income tax

 deductions that can be claimed when filing income tax returns. The total taxable income (after reducing

 any income tax deductions that have been claimed) would be taxed at the individual's income tax rates.

 

The Income Tax Department of India encourages its citizens to make use of the various Income Tax Deductions, Income Tax Exemptions and Income Tax Refunds allowed by the Income Tax Act. Incomes that help taxpayers to lower their taxes in India legally.

 

8 Useful income tax deductions to save taxes

 

There are several income tax deductions that an individual/HUF can claim. The most useful income tax deductions that can be claimed easily and are helpful in reducing the tax burden are explained below.

 

1. Investment Income Tax Deduction specified in Section 80C

 

The most popular income tax deduction is the Section 80C deduction, which is allowed for investments in certain specific instruments. There are many instruments in which investments can be made and the cumulative total of deductions allowed under this Section is Rs. Rs 1.5 lakh per year Some examples of specific instruments are

 

PPF account

Mutual Tax Savings Fund

Fixed tax savings deposit

National Savings Certificate

Repayment of the home loan principal

Life insurance policy premium

Equity Oriented Mutual Funds

Employee Pension Fund Contribution

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2. Deductions for Contribution to Pension Funds under section 80CCC & 80CCD

 

Deductions under Section 80CCC and Sec. 80CCD are income tax deductions allowable for the payment of any amount to initiate or continue any annuity plan of any insurance company to receive any pension from the person a deduction from the amount paid Under Section 80CCC.

 

And if the person has contributed to the notified Central Government pension plan, ie the National Pension Scheme (NPS), a deduction would be allowed Under Section 80CCD.

 

From the 2015-16 F.Y., an additional deduction of Rs. An investment of 50,000 is allowed in the NPS U/s 80CCD(1B) account. This additional deduction of Rs. 50,000 is above the deduction allowed in Section 80C and Section 80CCC. In other words, the cumulative total of these must not exceed Rs. 2,00,000.

 

3. Income Tax Deduction Under Section 80TTA for Interest on Savings Accounts

 

A deduction of Rs. It is also permissible to claim 10,000 under Section 80TTA (specified in Chapter VI-A) of interest earned on the Bank Savings Account. Such interest income is first added under the heading "Income from other sources" and then the deduction of such income is permitted under Section 80TTA subject to a maximum of Rs. 10,000 per year

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4. Housing Loan Interest Income Tax Deduction pursuant to Section 24

 

If a taxpayer has taken out a home loan, they can claim a deduction of the interest charged on that loan. It should be noted that this deduction under Section 24 is for interest charged and not interest paid.

 

The principal amount of the Mortgage Loan repaid is permitted as a deduction under Section 80C and Interest charged is permitted as a deduction under Section 24.

 

5. Section 80D: Deduction for Payment of the Medical Insurance Premium and Health Examination

 

If an individual/HUF has made any health insurance premium payments for himself, his spouse or dependent children, he may claim an income tax deduction for the same. The deduction allowed in this section varies depending on whether the insured is an elderly or non-elderly person.

 

If any amount was paid for preventive health examinations, deduction of such payments would also be allowed.

 

6. Section 80DD and Section 80U: Disability Income Tax Deduction

 

If the individual himself is disabled, he will be entitled to a deduction under Section 80DD, and in the event that any dependent family member of the individual is disabled, he will be entitled to a deduction under Section 80U.

 

The disabilities for which deductions are allowed in Section 80DD and Section 80U are also defined in the income tax law.

 

7. Section 80E: Income Tax Deduction for Interest on Education Loans

 

A person is allowed a Section 80E income tax deduction for repayment of interest on mortgage loans taken for the higher education of himself or his spouse or dependent children.

 

It should be noted that this deduction is only for the repayment of interest on the education loan and not for the repayment of the principal amount of the education loan. The nice thing about this income tax deduction is that there is no upper limit to the amount of deduction that can be claimed.

 

This deduction is not only allowed for education in India but also for education outside India.

 

8. Income Tax Deduction for Income under Section 80GG

 

If a person has paid rent on the home and has not claimed income tax deductions for rent paid under other sections of the income tax law, he or she may claim a deduction under Section 80GG.

 

In other words, a salaried employee who has not benefited from the HRA Waiver or any other person who has not claimed rental expenses paid under any other section of the Income Tax Act may make a deduction under this section, subject to the limits prescribed in Section 80GG.

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Section 80D - Health Insurance - Applicability, Discounts and Policies | With Automatic Income Tax Calculator for Government and Non Government Employees Fiscal Year 2022-23 as per Budget 2022

 Section 80D - Health Insurance - Applicability, Discounts and Policies |  Medical emergencies always

 surprise us. It's always better to be safe than sorry, and it's no different from health insurance.

 

Most residents in India are not covered by health insurance and rely on their savings or loans in case of a medical emergency. A must in your investment portfolio, the government encourages everyone to purchase health insurance and allows you to take advantage of tax deductions under Section 80D. 

What is Part 80D?

Any individual or HUF may claim a deduction from their total income for health insurance premiums paid in a given year under Section 80D. This deduction is also available for supplementary health plans and critical illness plans.

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Deduction benefits are available not only for the health insurance plan itself but also for purchasing a policy to cover a spouse, dependent children or parents.

The best part is that it is above the claimed cut under Section 80C.

Who is eligible for deductions under Section 80D?

 

Reduction of health insurance premiums and medical expenses for the elderly is only allowed for the Individual or HUF taxpayer category.

For individual taxpayers or HUF, insurance can be used to:

Self

Wife

dependent child

Parent 

No other entity can claim this deduction. A company or business cannot be entitled to deduction under this section.

 

Payments Eligible as a Deduction Under Section 80D

 

Health insurance premiums are paid for yourself, your spouse, children or dependent parents by any means other than cash.

 

Costs incurred for preventive health checks

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Medical expenses are incurred for the health of the elderly (aged 60 years and over) who are not covered by any health insurance scheme.

 

Contributions are paid to the central government health scheme or any scheme notified by the government.

 

Reduction available under Part 80D

The deduction allowed under Section 80Dm is Rs 25,000 in one financial year. In the case of seniors, the deduction limit allowed is Rs 50,000.

The table below illustrates the number of deductions currently available for the fiscal year 2020-21 and fiscal year 2019-20 for a single taxpayer under various scenarios:

Individual:

An individual can apply for a deduction of up to Rs 25,000 for insurance of self, spouse and dependent children.

Additional/separate parental insurance deductions are available in the amount of Rs 25,000 if they are under 60 years old or Rs 50,000 if your parents are over 60 years old.

 

If the taxpayer and the parent are over 60 years old, and whose medical coverage has been taken, the maximum deduction that can be used under this section is Rs 1,00,000.

 

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The elderly are elderly and elderly over 60 years.

HUF

HUF may request a deduction under Section 80D for claims received from any of the HUF members.

 

This deduction will be Rs 25,000 if the policyholder is under 60 years old and will be Rs 50,000 if the policyholder is 60 years old or older.

Single premium health policy

The 2018 budget introduces new provisions for deductible requests on single premium health policies.

 

Under the new provisions, if a taxpayer has paid a flat-rate premium for a policy with a validity period of more than one year in just one year, he or she can request a deduction equal to an appropriate share of the amount specified in section 80D.

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The corresponding share is obtained by dividing the flat-rate premium paid by the number of policy years. However, this will again incur a limit of Rs 25,000 to Rs 50,000 depending on the case.

 

 

Things to keep in mind when buying health insurance to apply for an 80D deduction

Health insurance premiums paid to brothers, sisters, grandparents, aunts, uncles, or other relatives cannot be claimed as a deduction for tax benefits.

 

Premiums paid on behalf of working children cannot be used for tax benefits.

In the case of partial payments by you and your parents, both of you may request a reduction in the amount paid by each other.

 

The deduction must be withdrawn without showing the service charge and taxes from the premium amount.

 

Group health insurance premiums provided by the company cannot be deducted.

Premiums paid by any means other than cash are allowed to be deducted. Therefore, it is also possible to reduce the premium paid by credit card or other online methods.

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Deduction for Medical Insurance Premium U / s 80D| With Income Tax Preparation Software All in Excel for the Assam State Employees for F.Y.2021-22

 Deduction for medical insurance premium under section 80D. Section 80D Medical 

Insurance Premium and Preventive Health Check-up or Central Government Health 

Scheme (CGHS) or Evaluator, exempts any individual or Hindu Undivided Family from 

contributing to any scheme informed by the Central Government regarding the health of 

his family, parents or HUF's Members 

Discount for Medical Insurance Premium U / Sec 80D

 

Where an assessor is eligible, the following expenses are eligible for a discount:

 

 (A) The health of the assessee or his family or any contribution to the Central Government Health Scheme or such scheme may be informed for the implementation of any insurance for his health or the full amount paid by the Central Government on behalf of the Assessor or his family. Pays any amount paid for health check-ups and the total amount does not exceed Rs. 25,000; And

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 (B) The total amount of insurance payable for the payment of any amount paid for an effective or immediate or preventive health check-up for the health of the assessor's parents or guardians shall not exceed 25,000 in total.

 

 (C) The assessor or any member of his family, who is a senior citizen or a very senior citizen and has not taken out medical insurance, the full amount paid for health care or material for the health of any member of his family, not exceeding Rs.30,000/-

 

 (D) The total amount of money spent on medical expenses incurred for the health of the parents of any valued person does not exceed Rs.30,000 / - as the assessor is a senior citizen or a very senior citizen and does not have medical insurance. 50,000

 

Explanation: The spouse of the family determiner and the dependent child

 

Any amount paid for preventive health check-ups will be paid through any mode including cash and in all cases other than preventive health check-ups in any other way except cash.

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Where the assessee is a Hindu undivided family, the eligible expenses for the exemption will be aggregated as follows:

 

 (A) The full amount paid for compensation or insurance for the health of any member of the entire Hindu undivided family which does not exceed one thousand rupees in total. 25,000

 

 (B) The total amount of money spent on medical expenses for the health of any senior citizen or senior citizen member of a Hindu undivided family shall not exceed Rs. 50,000 and no payment has been made for the payment of any insurance or for any person's health:

 

Further, provided that the sum of the amount specified under section (a) and section (b) shall not exceed Rs. 2,000 in total. 50,000

In the case of senior citizens, this amount will not be more than fifty thousand rupees.

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Note: - Where this amount has been paid in the previous year or for applying for health insurance of a person specified for more than one year, subject to the provisions of this section, the exemption must be approved proportionally for each previous year.

Explanation: For the purpose of this subdivision,

 

 Senior citizen means any individual resident in Indiawho is sixty years of age or older at any time compared to the previous year:

 

The exemption is also available under Section 80D for contributions to the Central Government Health Project. However, this discount is not available on HUF. This discount is available to any individual and only in the case of health insurance policies taken for the individual, spouse and dependent children. If a person is dependent or does not take out an insurance policy for the health of the parents, the exemption will not be available under this section.

 

Exemption under this section, under this limit, in respect of payment or contribution to be made by the assessor in this national health Scheme as per notification by the Central Government.

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Section 80D in Respect to Health Insurance Premiums, Plus Automatic 100 employees Master of Form 16 Part B FY 2017-18

Deduction under Section 80D is available as per the provisions of the Income tax Act, 1961.

Que 1 ) How is eligible for medical Insurance Premium?

Individuals and Hindu Un-divided Family (HUF) only

Que 2 What  is Mode of Payment allowed for Medical Insurance Premium?

Ans : The Medical Insurance premium can be paid by any mode of payment other than cash.

Que 3) What is maximum  Deduction available under section 80D of Income tax Act? -

Ans: For individuals less than 60 years of age, amount of health insurance premium paid or Rs. 25,000, whichever is lesser.

For senior citizens above 60 years, amount of health insurance premium paid or Rs. 30,000, whichever is lesser.

Que 4) : Who can be covered under section 80D? 

Ans: For an individual: Premium paid for insuring the health of the individual, his or her spouse, parents and children.

For a HUF: Premium paid for insuring the health of any member of the family.

Que 5): Are parent and parent in law covered under section 80D?

Ans: No, parents and parents in Law are not covered under section 80D .

Que 6) : Is premium paid for dependent children allowed?

Ans: Children above 18 years, if employed, can not be covered.

Male children, if not employed, but a bonafide student can be covered upto age of 25 years.

Female children, if not employed, can be covered until the time she is married.

Que 7) :  I have already contributed under section 80C, Can i still claim 80D benefit?

Ans: Yes , you can claim full benefit of  section 80 C (Rs 100,000/- ) as well as of section 80D.

Que 8 ) :  We have one mediclaim  policy and me and my father both are paying 50% payment. Can we both claim 80D benefit?

Ans: Part payment of premium is allowed. Both of , you can avail the deduction for the amount contributed by you and your parents too could avail deduction for their contribution.

Que 8 ) :  What is the limit for Preventive Health Check-up ?

Ans: Limit of  Preventive Health Check-up is Rs 5000/-. 

Payment  for Preventive Health Check-up can made by an assessee for self, spouse, dependent children or parents(s) during the year

Preventive Health Check-up payment can be made by any mode including cash.

Please note this limit of Preventive Health Check-up of Rs 5000 is within total limit of Rs 15000/- allowed under medical insurance under section 80D.

It means that if assessee pays medical insurance of Rs 11000 and Preventive Health Check-up of Rs 5000/- for self/ spouse/ or children then he will be allowed Rs 15000/- only.

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Additional deduction Rs. 5000/- get relief U/s Section 80D: Deduction for premium paid for Medical Insurance Plus Automated Tax Form 16 for F.Y. 2016-17 and A.Y.2017-18

Deduction is available for (below 60 years old) max  Rs. 25,000 /- to a tax payer of premium paid for Medical insurance of self, spouse and dependent children. If individual or spouse is above 60 years old or more the deduction available is Rs 30,000.

For claiming deduction, it is mandatory that the above payments should be made by any mode other than cash (e.g. cheque, credit card, debit card, etc.)

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Section 80D: Deduction for Preventive Health Check-Up

A deduction of Rs. 5000 will be allowed under this section for payment of preventive health check-up of either the individual himself or his family members which includes spouse, parents and dependent children.

This deduction is not in addition to the deduction of Rs.25000/30000 stated above, but is included in the above deduction.

It is important to note that Rs.5000 is the maximum total deduction allowed. This deduction is not per person but in total. So if a person pays an amount for preventive health check up of himself + spouse + dependent children + parents, the gross total deduction allowed would be Rs. 5000.

For preventive health check-up payment can be made by any mode (including cash) for claiming deduction.

Therefore, the maximum deduction available under this entire Section 80D is to the extent of Rs. 60,000.

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