18 June 2022 16:15

Tax Deduction under section 80C for Indian with foreign family Paying International Premium

Is 80C deduction available to non resident?

Income from house property

An NRI can claim a standard deduction of 30%, deduct property taxes, and benefit from an interest deduction of a home loan. The NRI is also allowed a deduction for principal repayment under Section 80C.

Is LIC premium paid for parents eligible for 80C?

(A) The taxpayer can claim deduction under section 80C in respect of premium on life insurance policy paid by him during the year. Deduction is available in respect of policy taken in the name of taxpayer, his spouse and his children.

Is GST paid on insurance premium eligible for 80C?

The term ‘sum paid’ is wide enough to include the annuity, charges levied by the insurer and the taxes that have been levied on the quantum of annuity paid. Thus, the GST paid on the instalment can be claimed as deduction under 80C.

What is basic exemption limit for NRI?

As a Non-resident, you still get the benefit of the basic exemption limit of Rs. 2,50,000 from your total income. However, If your total income in India consists of only short term capital gains or long-term capital gains, then the benefit of the basic exemption limit is not available in respect of such gains.

How much foreign income is tax free in India?

You have to treat this income as any other income which is earned by you locally. Minimum exemption of Rs 2,50,000 is allowed on your total income and the remaining income is taxable as per income tax slab rates.

Which insurance premiums are tax deductible?

Health insurance premiums are deductible on federal taxes, in some cases, as these monthly payments are classified as medical expenses. Generally, if you pay for medical insurance on your own, you can deduct the amount from your taxes.

Can husband claim wife’s LIC premium?

Yes, in a family husband or wife any one can pay the life insurance premium and claim the tax benefits under section 80 C of income tax act.

Is 80C and 80CCD are same?

Sections 80CCD, 80CCC and 80C

The benefits of Section CCD fall under those of 80C, i.e., the deductions claimed u/s 80CCD cannot be claimed again in 80C. The overall limit of deductions under 80C, 80CCC and 80CCD is Rs. 2 lakh, with an additional deduction of Rs. 50,000 allowed u/s 80CCD sub section 1B.

Is insurance premium taxable?

All insurance companies are subject to a tax on gross premiums. In addition, one of the schedules in the gross premiums tax return is used for the computation of retaliatory tax, which is the second tax that an insurance company may owe.

Is 80D included in 80C?

Other Tax Saving options beyond Sec 80C & Sec 80D. The most commonly used Sections for tax-saving under the Income Tax Act are Section 80C and Section 80D. Popular instruments like EPF, ELSS, ULIP, NPS, etc. are deductible under Section 80C.

What is covered under 80C?

What are the investments eligible for deduction under 80C? PPF, NSC, NPS, Tax saver FDs, Post Office Term Deposit, ELSS, ULIP, Senior Citizens Savings Scheme, Sukanya Samridhi Account. Here is a complete guide to all the deductions allowed under Section 80C.

Which 80C is best?

Best Tax-Saving Investments Under Section 80C

Investment Returns Lock-in Period
Unit Linked Insurance Plan (ULIP) Returns vary from plan to plan 5 years
Public Provident Fund (PPF) 7.1% currently 15 years
Sukanya Samriddhi Yojana 7.60% 21 years
National Savings Certificate 6.80% 5 years

Can I invest more than 1.5 lakh in 80C?

There is no legal restriction on the maximum amount invested in an ELSS, though the deduction under Section 80C is limited to Rs 1.5 lakh only.

How can I save tax over 10 lakhs?

How to Save Tax for a Salary Above Rs 10 Lakhs?

  1. Reduce Your Taxable Income by Up To Rs 1.5 Lakhs (Section 80C, 80CCC, 80CCD) …
  2. Additional Reduction of Up To Rs 50,000 for NPS Investors (Section 80CCD. …
  3. Reduce Your Taxable Income by Up To Rs 75,000 (Section 80D) …
  4. Reduce Your Taxable Income by Up To Rs 2 lakhs (Section 24)

How can I save tax in India other than 80C?

Best 10 Tax Saving Investment Options Other Than 80C

  1. Tax saving with NPS under Section 80CCD (1B): …
  2. Tax savings on Health insurance premiums under Section 80D: …
  3. Tax savings on repayment of an Education loan under Section 80E: …
  4. Tax savings on Interest component of Home loan under Section 24:

How do rich save taxes in India?

1. Mutual Funds, Provident Funds, Insurance: If you invest in any mutual funds, Provident Fund or Insurance of any kind, you can save tax under Section 80C of the Income Tax Act. For example, if you invest up to Rs1. 5 lakh in these funds or policies, you can save tax up to Rs46,350.

Is 80D included in 1.5 lakh?

Section 80D and 80C

Section 80C provides deductions up to Rs. 1.5 lakhs per year while Section 80D offers deductions up to Rs. 65,000, subject to conditions.

Can both husband and wife claim 80D?

As per section 80D, a taxpayer can deduct tax on premium paid towards medical insurance for self, spouse, parents, and dependent children. Individuals and HUF can claim this deduction. The limit of the deduction varies with age. A deduction of Rs 25,000 is available for self, spouse, and dependent children.

What is the maximum limit for 80D 2021 22?

Rs. 25000

The maximum limit u/s 80D is Rs. 25000 (in case senior citizen Rs. 50,000)and in case both assessee and parents are senior citizens, then the amount can be claimed upto INR 1,00,000.