Friday 3 January 2014

[www.keralites.net] Mediclaim Premium - Tax Deduction U/s 80D of Income Tax Act

 

Deduction in respect of Medical Insurance Premium (Mediclaim) paid to keep in force insurance by individual either on his own health or on the health of spouse, dependent parents and children or HUF on the health of any members of the family. A Mediclaim policy is a must because should you fall sick or meet with an accident, your medical bills could wipe out your savings.
Features of Mediclaim policy
1. Premium based on Age: - As in term insurance, the premium rates will vary among the insurers and will also depend on your age. The older you are, the heftier the premium. For instance, Mediclaim policy from General Insurance Corporation has a fixed premium till 35 years and then it changes in 10-year slabs.
2.    Who is it available to?
  • Individual (resident or non- resident, Indian Citizen or foreign citizen):- In case an individual is taking the deduction, the medical insurance policy can be taken in the name of any of the following: the taxpayer or the spouse, parents or dependent children* of the taxpayer.
  • HUF(Hindu undivided Family may be resident or non resident) :- In case a HUF is taking the deduction, the medical insurance policy can be taken in the name of any member of the family.
Note
  • Dependent Children (i.e. legitimate or legally adopted children).  Children above 18 years, if employed, cannot 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.
  • parents need bot be dependent on the Assessee.
  • parents of Individual or Spouse both are covered.
3. Entry Age: This insurance is available to a person between the age of 18 to 59 years.  However, the Policy can be renewed upto the age of 80 years.
a) Children above the age of 3 months can be covered provided parents are covered concurrently and suitable premium is paid. If the child above 18 years is employed or if the girl child is married, he or she shall cease to be covered under the policy. However male child can be covered upto the age of 25 years if he is a bonafide regular student and fully dependent on primary insured. Female child can be covered upto the time, she is unmarried.
b) If the insured has taken continuous Mediclaim insurance policy with us for at least 5 years prior to attaining the  age of 80 years the policy can be renewed beyond the age of 80 upto  the age of 90 years as a special case with the approval of Regional Incharge on case to case basis. The premium chargeable shall be 10% of the premium for 75-80 years age slabs for  proposers above 85 and 20% of the premium for 75-80 age slabs for proposers above 90.
c) No inclusion of family member during currency of policy is permissible except for a new born child between the ages of 3 months to 6 months and newly married spouse within 60 days of marriage.  Otherwise inclusion of family member shall be allowed only at the time of renewal. Prorata premium shall be charged for such inclusion during the currency of the policy for the unexpired period.
4. Sum Insured: Minimum sum insured shall be Rs 50,000/- and can be increased in multiples of Rs 25,000/-upto Rs 5 lacs.  The sum insured must be identical for primary insured and the dependents. However, the children may be covered for 50% Sum Insured as per 4 above.
5. Payment of Mediclaim Premium out of taxable Income:- The amount must have been paid using the taxpayer's income chargeable to tax.
6.     In addition to deduction u/s, 80C, 80CC and 80CCD,:- This is an additional deduction available which do not include deduction  u/s 80C, 80CCC and 80CCD for which overall limit is  is Rs. 1,00,000.
7. Partly contribution: If part payment is done by you and part payment by the parent, both can claim deduction to the extent of their contribution subject to maximum allowed but amount should be paid directly to insurance company and paid through mode other than by cash.
8. Mode of payment: The premium may be paid by any mode of payment other than cash. Note prior to 1st April 2009, premium payment was required to be done only by cheque. Credit card or other online payment mechanism where not allowed. Now all payment modes except cash payment are accepted.
9. Which Mediclaim Premium is allowed? : - Mediclaim premium paid under Medical insurance scheme of General Insurance Corporation approved by the Central Government, or any other insurer approved by the Insurance Regulatory Development Authority (IRDA).
10.  Proposer of the policy is not must: The premium is to be paid to effect or keep in force insurance policy, there is no condition that assessee should be the proposer of the policy.
11.  Part contribution: Assessee can  partly contribute the premium amount but amount should be paid directly to insurance company and paid through mode other than by cash (see example)
12.  What is the amount of the deduction?
For Individual
  • Basic deduction: Mediclaim premium paid for Self, Spouse or dependant children. Maximum deduction Rs 15,000. In case any of the persons specified above is a senior citizen (i.e. 65 years or more as of end of the year up to F.Y. 2010-11 and 60 years from F.Y. 2011-12) and Mediclaim Insurance premium is paid for such senior citizen, deduction amount is enhanced to Rs. 20,000.
  • Additional deduction: Mediclaim premium paid for parents. Maximum deduction Rs 15,000. In case any of the parents covered by the Mediclaim policy is a senior citizen, deduction amount is enhanced to Rs. 20,000.
For HUF
  • Mediclaim premium paid for any member of the HUF. Maximum deduction Rs 15,000. In case any member of the HUF covered by the Mediclaim policy is a senior citizen, deduction amount is enhanced to Rs. 20,000.
EXAMPLE- 1
1. An individual assessee pays (through any mode other than cash) during the previous year medical insurance premium, out of his taxable income, as under:
(i) Rs 12,000/- to keep in force an insurance policy on his health and on the health of his wife and dependent children;
(ii) Rs 17,000/- to keep in force an insurance policy on the health of his parents.
Under the new provisions he will be allowed a deduction of Rs 27,000/- (Rs. 12,000/- + Rs. 15,000/-) if neither of his parents is a senior citizen. However, if any of his parents is a senior citizen, he will be allowed a deduction of Rs 29,000/- (Rs.12,000/- + Rs.17,000/). Whether the parents are dependent or not, is not a consideration for deciding the deduction under the new provisions.
Further, in the above example, if cost of insurance on the health of the parents is Rs 30,000/-, out of which Rs 17,000/- is paid (by any non-cash mode) by the son and Rs 13,000/- by the father ( who is a senior citizen), out of their respective taxable income, the son will get a deduction of Rs 17,000/- ( in addition to the deduction of Rs 12,000/- for the medical insurance on self and family) and the father will get adeduction of Rs 13,000/-.
EXAMPLE 2
An individual assessee pays through credit card during the previous year health insurance premium as under:
  1. Rs. 12,000 to keep in force an insurance policy on his health and on the health of his wife and children
  2. Rs. 17,000 to keep in force an insurance policy on the health of his parents.
Under the proposed new provisions, he will be allowed a deduction of Rs. 27,000 (Rs. 12,000 + Rs. 15,000) if neither of his parents is a senior citizen. However, if any of his parents is a senior citizen, he will be allowed a deduction of Rs. 29,000 (Rs. 12,000 + Rs. 17,000). Whether the parents are dependent or not, is not a consideration for deciding the deduction under Section 80D.
EXAMPLE- 3
Question:- In the last budget, the finance minister announced exemptions for Mediclaim charges paid for senior citizens. However, I am not sure if it has yet been notified and effective. I need to take medical insurance for both my parents, who are senior citizens. I would appreciate if you can let me know.
Answer:-  Earlier Sec 80D deduction in respect of medical insurance premium was Rs 15,000 for an individual and Rs 20,000 for a senior citizen. However, from this year, if someone were to buy medical insurance for his parent/s, an additional deduction of Rs 15,000 (over and above Rs 15,000) will be available. If such parent/s were senior citizen, the additional deduction would be Rs 20,000. So a person insuring himself, his spouse, children and parents could potentially get a deduction of Rs 35,000. This provision is effective from 1.4.08.
EXAMPLE- 4
Can I pay mediclaim on behalf of my mother-in-law and claim deduction under Section 80D of the Income Tax Act?
An individual is allowed to claim deduction under Section 80D when the policy is taken on the health of the assessee, his spouse, parents (dependent or not) and dependent children. Accordingly, you cannot claim the deduction under Section 80D in respect of mediclaim paid for your mother-in-law.
Appendix: Section 80D of the Income Tax Act
Deduction in respect of medical insurance premium.
80D. (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted such sum, as specified in sub-section (2) or sub-section (3), payment of which is made by any mode, other than cash, in the previous year out of his income chargeable to tax.
(2) Where the assessee is an individual, the sum referred to in sub-section (1) shall be the aggregate of the following, namely:
(a) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his family as does not exceed in the aggregate fifteen thousand rupees; and
(b) the whole of the amount paid to effect or to keep in force an insurance on the health of the parent or parents of the assessee as does not exceed in the aggregate fifteen thousand rupees.
Explanation.For the purposes of clause (a), family means the spouse and dependant children of the assessee.
(3) Where the assessee is a Hindu undivided family, the sum referred to in sub-section (1) shall be the whole of the amount paid to effect or to keep in force an insurance on the health of any member of that Hindu undivided family as does not exceed in the aggregate fifteen thousand rupees.
(4) Where the sum specified in clause (a) or clause (b) of sub-section (2) or in sub-section (3) is paid to effect or keep in force an insurance on the health of any person specified therein, and who is a senior citizen, the provisions of this section shall have effect as if for the words fifteen thousand rupees, the words twenty thousand rupees had been substituted.
Explanation.For the purposes of this sub-section, senior citizen means an individual resident in India who is of the age of sixty-five years or more at any time during the relevant previous year.
(5) The insurance referred to in this section shall be in accordance with a scheme made in this behalf by
(a) the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and approved by the Central Government in this behalf; or
(b) any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).]
FAQ on Mediclaim-
1.Why is deduction u/s 80D allowed?
The deduction is allowed for
1. buying medical insurance , popularly known as Mediclaim policy.
2. Keeping in effect a medical insurance already bought.
2. How much deduction available?
1. If Mediclaim is bought for any person other than person having Aged 60 years or more , then Rs 15,000.
2. If Mediclaim is for person having 60 years or more , Rs 20,000.
3. Who can claim deduction?
Individual and HUF making payments for medical insurance.
1. Individual can claim for self, wife, children and parents.
2. HUF can claim for Mediclaim policy on members.
4. What should be mode of payment of insurance premium?
Any mode other than cash will make one eligible for deduction u/s 80D.
5. If office deducts salary for medical insurance for employee and his family , whether the employee can claim deduction u/s 80D?
Yes, for the fact that the mode of payment is any ,other than cash, and It is employee who paid for himself or his family's insurance.
Get a certificate from the employer regarding deduction of amount for medical insurance purpose.You can claim to the extent the dedcution has been made by the employer for medical insurance subject to maximum RS 15,000
6.If an individual buys Mediclaim for himself and for his parents exceeding 60 years, how much can he claim as deduction?
Good question. Subsection 2 of section provides as under
(2) Where the assessee is an individual, the sum referred to in sub-section (1) shall be the aggregate of the following, namely:
(a) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his family as does not exceed in the aggregate fifteen thousand rupees; and
(b) the whole of the amount paid to effect or to keep in force an insurance on the health of the parent or parents of the assessee as does not exceed in the aggregate fifteen thousand rupees.
It is clear that an individual can claim deduction up to Rs 35,000 for medicalim insurance , if he makes insurance for his family and any parents exceeding 60 years.
7. Can somebody having invested the amount from income exempt from tax or by taking loan, claim deduction u/s 80D?
No as per opening line in the section 80D , the payment should be only out of income chargeable to tax . Read the opening line :
80D. (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted such sum, as specified in sub-section (2) or sub-section (3), payment of which is made by any mode, other than cash, in the previous year out of his income chargeable to tax.
8. Can you get deduction u/s 80D for Overseas Mediclaim policy?
Yes, in author opinion , there in nothing in the provision u/s 80D which prohibits claim of deduction u/s 80D for medical insurance for overseas journey. The only requirement, as given in section 80D(5) is that the insurance companies issuing such overseas insurance should be one of these
(5) The insurance referred to in this section shall be in accordance with a scheme made in this behalf by
(a) the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and approved by the Central Government in this behalf; or
(b) any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).
 

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[www.keralites.net] : Phone number will reveal ur age

 

 
 
 
 
 Phone number will reveal ur age!!!!!!!!!!!!!!Click Me!
 
SEEMS LIKE BULLSHIT, BUT AMAZINGLY ACCURATE.
 
Subject: Fwd:Phone number will reveal ur age

 
LADIES BEWARE.  YOUR WELL GUARDED SECRET WILL SOON BE OUT !!
Do not believe? Try it...
I do not know who discoverd this? Found  it to be accurate.

It will take about 15 seconds.  So read and do it at the same time so that you will not lose the pleasure of finding out.

[1] Take a look at your last digit of your cell phone number
[2] Use this figure and multiply by 2
[3] Then add 5
[4] And then multiply by 50
[5] And then add the number 1763
[6] The last step; with this number, subtract your birth year.
Now you see a  number.
The first digit is the last digit of your phone number, the next digits is your actual age!
Surprising?


This is a very interesting math problem.
Really amazing!! 
 

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[www.keralites.net] Four Types of Toxic People - Keep Yourself Away

 

Those with whom we assemble, we soon resemble!

This simple old saying hides a deep Truth that can enlighten and empower every aspect of our lives:

Who we are — our very essence — is continually being transformed by the company we keep.

Stated differently, when we keep the company of what is light and bright, our lives get lighter and brighter. And when we keep the company of what is dark and discouraging, our lives can't help but be dragged downward.

This idea might sound a little simplistic at first, but its power soon becomes evident when we put it to use in the quest to realize our highest aspirations. The key lies in understanding that this principle is active on multiple levels at once. For instance, when referring to "the company we keep," we of course mean the people we spend time with every day — family, friends, co-workers, etc. However, on a deeper and more important level, "company" can also refer to the thoughts and feelings moving within us in any given moment.


1 Muckrakers: These negative sprits live to drag up old painful events and then revel in the anger, resentment, or bitterness that such unhappy memories hold. Stay away from any spirit, in others or in yourself, that wants you to dive into some suffering over what happened in any past moment.

2 Mud Slingers: These malicious spirits pull themselves up by pulling others down. They love to gossip, criticize, judge, and denigrate anyone who ever had the misfortune of spending time with them. The only loyalty these denizens of the unconscious worlds have is to their own pain, which they feed by involving everyone they can in their mud slinging.

3 Swamp Dwellers: There is a group of mired spirits that thrive on low vibrations, and that require a human instrument to play out their endless dark dissonance. Easily recognizable, these misfortunate forces serve up dreadful mental pictures of past and future events for the sake of the unnatural reactions they produce. Ignore these corrupted spirits and they must take their evil speculations elsewhere.

4 Life Haters: These dark spirits perpetuate their hold on the human soul by resisting the beautiful gifts of life. They trick us into commiserating with their complaining, cruelty, and irritation because without our unconscious consent, these chronically conflicted spirits can't spread their poison.

Just as harmful viruses require a human host to exist and thrive, so do negative states require the unconscious consent of human beings to carry out their dark mission. For what power does a negative thought have other than the power to convince a person to do its bidding? The answer is none!

When we begin to consciously withdraw our consent to associate with toxic people, and the toxic thoughts and feelings inside of us, we leave them with no place to thrive. Our real inner work is to sweep clean the places in ourselves where such creatures reside which in turn brightens our life and the lives of everyone around us.

Begin today, this very moment, to withdraw any permission you have unknowingly granted these dark spirits to be in your life. Do not judge yourself, or those around you in whom these misdirected forces are active, but instead come awake and refuse to spend one more moment of your life lending your precious life force to their dark purposes.

This powerful, positive action will change your life. As you begin to refuse to consort with what is dark, you'll find that you begin to attract with what is light, bright, and cheerful. Your relationships will deepen, your professional life will take on new vigor and freshness, and the whole of your days will begin to resemble the radiant Life that you have deliberately chosen as your conscious companion.

Those with whom we assemble, we soon resemble! This simple old saying hides a deep Truth that can enlighten and empower every aspect of our lives: Who we are — our very essence — is continually being transformed by the company we keep. Stated differently, when we keep the company of what is light and bright, our lives get lighter and brighter. And when we keep the company of what is dark and discouraging, our lives can't help but be dragged downward.

Guy Finley is Founder and Director of the Life of Learning Foundation, devoted to helping people realize their True Relationship with Life. Guy is the author of over 30 books and audio albums that have sold over a million copies in 15 languages worldwide, and is on the faculty of the Omega Institute, the nation's largest and most trusted holistic education provider. For more information about Guy Finley and Life of Learning call (541) 476-1200 or visit http://www.guyfinley.com.

Article Source: http://www.positivearticles.com. PositiveArticles.Com does not vouch for or necessarily endorse the contents of this article.


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[www.keralites.net] Never forget two people in your life....!

 
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