Skip to main content

Save Tax with Health Insurance

 

Health insurance offers attractive tax benefits. The premium you pay towards health insurance is tax deductible under Section 80(D) of Income Tax Act, 1961.

 

While computing the total income of an assessee, being an individual there shall be a deduction of sum specified in Sub-Section (2) Clause (a) and (b) of Section 80(D).

Sub-Section (2) - Where the assessee is an individual the sum deducted from his/her taxable income shall be the aggregate of the following:

  • The whole amount paid to effect or to keep in force an insurance on the health of the assessee or his/her family (here family means spouse and dependent children of the assessee) but not exceeding Rs. 15000
  • The whole amount paid to effect or to keep in force an insurance on the health of parent or parents of the assessee but not exceeding Rs. 15000 in aggregate

For senior citizens, the limit has not changed; it is Rs. 20000 per financial year. To make the full utilization of the said limit, you can add the premiums you paid for health insurance and the premiums paid for the critical illness rider or any other health insurance rider under life insurance policy.

 

Deductions under section 80(D) is available over and above the deductions under section 80(C) that has a limit of Rs. 1 lakh.

 

In short, health insurance payments do not just cover the health of yourself and your family; it is financial prudent too, allowing you to save a packet on income tax.

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1.ICICI Prudential Tax Plan

2.Axis Tax Saver Fund

3.IDFC Tax Advantage (ELSS) Fund

4.DSP BlackRock Tax Saver Fund

5.Religare Tax Plan

6.Franklin India TaxShield

7.Canara Robeco Equity Tax Saver

8.BNP Paribas Long Term Equity Fund

9.Reliance Tax Saver (ELSS) Fund

10.HDFC TaxSaver

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

Invest in Tax Saver Mutual Funds Online -

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

Popular posts from this blog

UTI MNC Fund Online

Invest in UTI MNC Fund Online   As markets have turned extremely volatile in the past few months, investing in a quality portfolio with a multi-cap focus has become the need of the hour. One such scheme which has performed well is UTI MNC Fund (launched in 1998). The scheme is managed by Swati Kulkarni. There are four main advantages of investing in the scheme.First, it sharply focuses on multi-national companies across sectors whose products are accepted not only in India but also outside India. Such diversified geographical presence helps the fund manager in maintaining a balanced portfolio. Second, in times when demand is low, such companies whose products have high acceptability, tend to do relatively better than peers. Third, the scheme follows a buy-and-hold strategy in picking companies, which provides handsome returns in the long term. Fourth, the scheme does not have a large cap bias and also has mid-cap MNCs. The scheme has beaten its benchmark indices Nifty MNC and C...
Read more

HDFC Equity Savings Fund Online

Invest HDFC Equity Savings Fund Online     HDFC Equity Savings Fund, an open-ended equity scheme, after its repositioning, has announced its maiden dividend as under:   Name of the Fund Dividend Per Unit # Record Date Face Value (per unit) HDFC Equity Savings Fund Re. 1 28 th April, 2016 Rs. 10   # The dividend will be subject to the availability of distributable surplus and may be lower, depending on the distributable surplus available on the Record Date. Pursuant to payment of dividend, the NAV of the Dividend Option(s) of the above Scheme(s) would fall to the extent of payout and statutory levy, if any. The HDFC Equity Savings Fund takes exposure to both equity and debt asset classes like a Balanced Fund, but lowers volatility from equity markets by partly hedging the equity exposure. Lower unhedged Equity exposure ensures lower volatility while the combined exposure of Equity + Arbitrage offers the tax efficiency of equity oriented funds while offering highe...
Read more

Mutual Fund Review: Franklin India Taxshield

  It maintains a diversified equity portfolio across sectors and market caps. It tends to maintain a relentless focus on long-term and ignores momentum to a large extent. So, sectors on a high metals and construction in 2007 - will not lead the fund to buy the stocks even at the cost of lower returns. In 2009, the FMCG allocation began to drop towards the year-end, despite the market rallying from March. This again shows the manger sticks to his convictions and does not get swayed by the market. In 2008, it was the third-best performing fund in its category. Instead of resorting to aggressive cash calls (averaged 5per cent), the fund increased its exposure to FMCG and healthcare. The distinct large-cap bias came to its rescue. Though in a rising market (2009), the fund was an average. The majority of the portfolio is held for long and some favourites (Infosys, L&T, Grasim Industries, RIL, Cummins India, Marico) have been around for a long period. The fund takes small position...
Read more

Balanced Funds Online

Invest Balanced Funds Online   Balanced funds typically maintain an allocation between 65-75% to equity, and the rest in debt. The minimum 65% allocation to equity is to ensure that the fund qualifies for equity taxation. Further, the discretion to vary the allocation lies with the fund manager based on his market views. As an investor, in case you would like to manage the asset allocation, you could invest in a mix equity funds or shares or ETFs , debt, etc. and rebalance the portfolio according to your views. But you should also consider the cost-benefit implications including transaction costs, taxation, etc. of frequent re-balancing. An annual review and re-balancing (if required) of one's portfolio is normally considered adequate. ----------------------------------------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saving Mutual Funds to invest in India for 20...
Read more

How to diversify your Portfolio

  Look at your portfolio. Do you hold more than five equity funds or carry fixed deposits in more than five banks? If so, you are probably suffering from compulsive diversification disorder! In this article, we ask a fundamental question: Do you really diversify? If so, how? A la carte portfolio Diversification is a process where you hold investments that do not all decline at the same time. In an ideal world, this means you should create a portfolio that has weakly-correlated assets. So, if one investment declines significantly, another will fall only marginally or move higher. But in the globalised world, it is difficult to create such a portfolio, as all assets are often strongly correlated to each other. In such a situation, the best you can do is to create a portfolio with assets that do not all decline by a large amount at the same time. Yet, that is what happens in a global crisis in 2008. Why? In such times, all asset classes tend to move closely, as in...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now