CA NeWs Beta*: Seek additional tax deductions before you submit final investment declaration

Search This Site

Saturday, January 5, 2013

Seek additional tax deductions before you submit final investment declaration

MUMBAI: Before submitting your final investment declaration to your company in the next few days, check what are the extra tax breaks you can claim this year. For example, if you have a family member suffering from specific illnesses such as Cancer or AIDS, you can seek additional tax deductions. Similarly, tax payers who have borne medical expenses on special dependents can seek additional tax deductions over and above their regular tax saving investments.


"With most companies closing investment declaration by January 15, tax payers still have some time to widen your tax relief," says Vineet Agarwal, Director, KPMG.

"Actual expenditure incurred on treatment of specified disease such as, AIDS, cancer, neurological diseases, etc, is deductible to the extent of Rs 40,000 or the actual expense whichever is lower. The limit is increased to Rs 60,000 in case of expense incurred for a senior citizen."

The expenditure may be incurred on the tax payer or an eligible dependent. The tax payer has to obtain a certificate from the doctor to claim the tax deduction.

Secondly and individual who has incurred expenditure for medical treatment of a dependant who is having any disability or has deposited any amount under a prescribed scheme for the maintenance of the dependent can seek a tax deduction.

"In such cases, tax payers are allowed a deduction of Rs 50,000. Deduction increases to Rs 100,000 in case of severe disability. The above deductions are also available if the tax payer himself is a person with disability," says Vaibhav Sankla, Director H&R Block India.

A tax payer can claim a deduction under section under Section 80DD.

Dependents can include spouse, children, parents, brothers and sisters or any of them. "To be eligible to claim the deduction, you must obtain a certificate in Form 10IA for a doctor having prescribed qualification and working in a government hospital. You will have to submit the copy of the certificate in Form 10IA with the payroll department of your organisation," says Sankla.

http://economictimes.indiatimes.com/personal-finance/tax-savers/tax-news/seek-additional-tax-deductions-before-you-submit-final-investment-declaration/articleshow/17807063.cms

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...
For mobile version of this site click here


News Archive

Recommended Post Slide Out For Blogger