How to avail tax rebate on mediclaim coverage?

I’m a 70-year-old retired authorities worker, whereas my spouse is greater than 65 years of age. About 14 years in the past, our daughter took out a mediclaim coverage in our names and had been paying the premiums recurrently. Now, she is unemployed and finds it tough to pay the premiums. Can I pay the premium and declare earnings tax (I-T) advantages underneath part 80C?


Based on the knowledge offered by you, we perceive that medical insurance coverage coverage was taken by your daughter for you and your partner and such funds had been claimed as deduction underneath part 80D of the I-T Act, 1961, by your daughter.

As per the present provisions of the part, a person taxpayer is eligible for claiming deduction up to the prescribed restrict (being 50,000 in your case whereby you and your partner are 60 years or extra) in respect of cost made in the direction of medical insurance coverage coverage taken for self, partner, dependent kids.

Since going ahead, you shall be making the funds for the medical insurance coverage premium, try to be eligible to declare the accessible deduction in respect of medical insurance coverage premium paid, underneath part 80D (and never 80C) of the Act, up to a most restrict of 50,000 each year.

It is essential to word that the deduction is obtainable solely in case the place the cost is made by the use of any mode (aside from money).

The modalities if any for altering the proposer’s identify out of your daughter to your self must be individually checked with the insurance coverage firm.

I’m a retired senior citizen and my spouse is a homemaker. We have three demat accounts: one every for us and a joint account. Irrespective of whether or not I promote shares from my account or the joint account, the long-term capital positive factors (LTCG) are registered in my tax returns. Is there any means whereby my spouse can present the positive factors in her earnings tax return (ITR) if we promote shares from the joint account?

—Name withheld on request

Based on the restricted data accessible, it’s presumed that the funds invested within the securities held in all of the three demat accounts (particular person in addition to joint) belong to you, as you talked about your spouse is a homemaker.

As per the provisions of the Income-tax Act, 1961, earnings arising instantly or not directly to the partner of a person, from the property transferred by the person (for nil consideration or insufficient consideration), shall be included within the earnings of that particular person (and never the receiving partner) for the aim of earnings tax.

In view of the above, despite the fact that your spouse is a joint account holder within the demat account, the earnings arising from the investments therein (dividend/ capital positive factors and many others.) shall be thought of as taxable earnings in your arms and can want to be included in your tax returns.

Parizad Sirwalla is companion and head, world mobility companies, tax, KPMG in India.

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