Income Tax

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Sumitha K (Querist)
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04 February 2011 Hi Experts,

Please help me out for the following doubts on Income Tax on salaries.

1.I own a house and stay in rented house. I have taken housing loan. Can I claim HRA as well as housing loan benefit assuming i have not let out my own house.

2.For availing LTA can i produce receipt given to me by tours and travels for travel by road(taxi).

3.Any limit on children's education fees under 80C?

4.What is the maximum limit for health insurance? My company has obtained medical insurance policy on all employees and the amount is part of CTC. Can we claim it u/s 80D?

5.What are the nature of diseases that qualify for deduction u/s 80DD and 80DDB?

Please reply fast. I need your advice urgently.

Sumitha

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 February 2011
1.I own a house and stay in rented house. I have taken housing loan. Can I claim HRA as well as housing loan benefit assuming i have not let out my own house.

Ans. HRA as well as housing loan benefits are available to you.
If you let out your house, then also these benefits will be available to you. But in such case you can show rental income and get 30% Standard deduction on it.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 February 2011 2.For availing LTA can i produce receipt given to me by tours and travels for travel by road(taxi).

Ans. Under Rule 2B the exemption is subject to certain maximum limits, depending upon modes of transport used or available.

In such case maximum LTC availed can be limited to AC Ist Class rail fare by the shortest route where the place of origin and Destination is connected with rail.

If the places are not connected with rail
you may avail taxi fare also as the maximum limit prescribed in such cases is first class or deluxe class fare of recognised public transport system.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 February 2011 3.Any limit on children's education fees under 80C?

Ans. Limit as regards children is for any 2 children of the individual.
As regards the amount: No cap provided. You may spend whole 80C i.e. 1.00lac.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 February 2011 4.What is the maximum limit for health insurance? My company has obtained medical insurance policy on all employees and the amount is part of CTC. Can we claim it u/s 80D?

Ans : In case Medical Insurance premium is deducted from amployee's salary or is recovered from the employee, you may claim it U/s 80D.
Its maximum limit for-
Employee and his Children
(All Below 65 Years) Rs. 15000/

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 February 2011 5.What are the nature of diseases that qualify for deduction u/s 80DD and 80DDB?

You may ask the name of particular diseases, for which you want to claim these benefits. As there is a long list.

Guest

Guest (Expert)

05 February 2011 Very much agree with Mr. Bafna

Sumitha K

Sumitha K (Querist)
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06 February 2011 Dear Bafna Sir and Moondra Sir,

Thanks so much for promply clariying my doubts.

A)Please let me know if medical expenditure on the following operation / treatment qualifies for any deduction

1.Cataract operation
2.Heart operation
3.Kidney stone operation
4.Delivery expense of spouse

B) With respect to life insurance u/s 80C,if amount of premium paid for policies on spouse, children, parents and dependent brother and sister. Whether all premium paid qualifes for deduction?

Please reply.

Sumitha

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 February 2011 Ans A) Specified diseases and ailments for the purpose of deduction under section 80DDB.

11[11DD. (1) For the purposes of section 80DDB, the specified diseases and ailments shall be as under :—

(i) Neurological diseases

(a) Dementia

(b) Dystonia Musculorum Deformans

(c) Motor Neuron Disease

(d) Ataxia

(e) Chorea

(f) Hemiballismus

(g) Aphasia

(h) Parkinsons Disease

Explanation.—For the purposes of this rule the abovementioned diseases shall be treated as chronic and protracted, if the disability has been certified to be 40% and above.

(ii) Cancer

(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)

(iv) Chronic Renal failure

(v) Hemophilia

(vi) Thalassaemia

(2) For the purposes of section 80DDB, the prescribed authority shall be any doctor registered with the Indian Medical Association with post-graduate qualifications.

(3) The certificate shall be from the prescribed authority in Form No. 10-I.]

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 February 2011 B) With respect to life insurance u/s 80C, amount of premium paid for policies on spouse & children of individual qualifes for deduction.

One more thing , the premium should not exceed 20% of the amount of sum assured.
In such case -
1. Extra premium will not be eligible for deduction.
2. At the time of maturity tax liability will arise.

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CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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06 February 2011
I hope, as usual, Shri Moondhra will agree with above.

.

( I always agree with Shri Paras Bafna without writing it frequently - I agree ).

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CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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06 February 2011 For the sake of quality answers :

.

EXPERTS are supposed to give their own

comments/opinion rather than to be

EX-PART of the opinions already

shared with great labour

by the previous EXPERT.

.

Only on controversial matters we may give our opinion like : I agree.

.

By just agreeing we can keep running of our score at caclub.

.

Parantu Kya Us-se Laddu Milenge ?

.

ADMIN PLEASE NOTE AGAIN.

(Already sent to ADMIN as PM ).

.

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