It is said that in order to contribute to the growth of the nation one should pay tax and if one still do not want to pay tax and still be a part of the people contributing to the growth of the nation, than one should save tax and not evade it. Thus with the onset of the New Year, possibilities are that you're already planning to save tax for the financial year 2009-10. We'd like to update you about the investment approaches you can implement to do effective tax planning. Given below is a precise note on the two sections which are most relevant to your personal income tax planning. Section 80D of the Income Tax Act, 1961 allows you to claim tax deductions for Health Insurance taken for yourself and your family, including parents. By using the below table for investment one will be able to save up to Rs 10815/- on your tax liability under Sec 80D. One can use any of the
health insurance companies in India to get the plan as rates will be more or less, however it makes sense to check the plan. Given below is an illustration of the Tax benefit** for the
health insurance policies.
| Health Insurance Premium
| Tax Deduction u/s 80D**
|
For yourself and your family
| Rs. 15,000/-
| Rs. 4,635/-
|
For your Parents (above 65 yrs.)
| Rs. 20,000/-
| Rs. 6,180/-
|
Total (for self and parents above 65)
| Rs. 35,000/-
| Rs.10,815/-
|
The maximum deduction that can be claimed is Rs. 15,000/- for you and your family and an additional Rs. 15,000/- for health insurance bought for your parents (in case your parent/s are Senior Citizens Rs. 20,000/-). Thus, you can deduct up to Rs. 30,000/- from your taxable income for medical insurance premiums paid and save Rs. 9,270/-.
Thus one will be able to get the
health insurance for senior citizens and also be able to save the tax. Readers are requested to give their comments related to health insurance policy to help all readers derive the benefit.