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 often. Now, she is unemployed and finds it troublesome to pay the premiums. Can I pay the premium and declare revenue tax (I-T) advantages beneath part 80C?

—Jeyaseelan

Based on the data offered by you, we perceive that medical insurance coverage coverage was taken by your daughter for you and your partner and such funds have been claimed as deduction beneath 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 as much as 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 say the out there deduction in respect of medical insurance coverage premium paid, beneath part 80D (and never 80C) of the Act, as much as a most restrict of ₹50,000 every year.

It is vital to notice that the deduction is offered solely in case the place the cost is made by means of any mode (aside from money).

The modalities if any for altering the proposer’s title out of your daughter to your self needs to 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 good points (LTCG) are registered in my tax returns. Is there any means whereby my spouse can present the good points in her revenue tax return (ITR) if we promote shares from the joint account?

—Name withheld on request

Based on the restricted info out there, 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, revenue arising immediately or not directly to the partner of a person, from the belongings transferred by the person (for nil consideration or insufficient consideration), shall be included within the revenue of that particular person (and never the receiving partner) for the aim of revenue tax.

In view of the above, though your spouse is a joint account holder within the demat account, the revenue arising from the investments therein (dividend/ capital good points and many others.) shall be thought-about as taxable revenue in your arms and can should be included in your tax returns.

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

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