Filing ITR? Know easy methods to declare tax deduction for Covid-related bills

NEW DELHI: Covid-19 has not solely triggered psychological pressure to individuals however has put many below monetary stress given the steep value of remedy. However, having medical insurance coverage can ease this to an extent. Apart from this, there are specific tax deductions which you’ll declare towards the bills incurred for covid remedy which may also help you deliver down the tax legal responsibility.

If you’re planning to file taxes don’t neglect to say these deductions.

Covid medical insurance: You can declare a tax deduction of as much as Rs25,000 below Section 80D towards the premium paid for a medical insurance coverage. This features a medical insurance coverage purchased particularly to cowl covid-19 associated bills.

“Apart from the medical insurance policies some of the policies are also launched by the insurance companies which covers only corona related expenses. Premium paid for those policies are also entitled for deduction under section 80D, provided that the premium should be paid by any other mode other than cash. Therefore, we can say that an Individual can claim deduction under section 80D in respect of insurance premium paid on corona-related insurance policy up to the amount specified in the said section,” stated Kapil Rana, founder & chairman, HostBooks Ltd.

In case you paid the premium for the medical insurance coverage of your dad and mom, additional deduction might be claimed. “In case the dad and mom are 60 plus years of age an extra deduction of as much as ₹50,000 might be claimed,” stated Sujit Bangar, Founder Taxbuddy.com. This might be claimed below Section 80D.

Financial assist: In case an individual has acquired monetary assist to fulfill medical bills associated to covid-19 from employer or some other particular person, the identical can be tax exempt as per newest notification from the tax division. As per the notification, there isn’t a higher restrict on this. In case relations of an worker obtain ex-gratia fee from an employer, will probably be tax-free whereas in case of others fee as much as ₹10 lakh can be tax-free.

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