The Union Budget 2018-19 has made certain proposals that could benefit consumers of medical insurance industry, calendar year itself who prefer to pay insurance costs for multiple years in one. If the parents are older persons and you are paying for their medical insurance premiums, you can claim yet another deduction of to Rs30 up,000-taking the total deduction to Rs55,000. A deduction is the first tool to use to reduce your tax responsibility. It really is a decrease from your total taxable income.
The Budget has also proposed to increase the section 80D deduction for senior citizens. Section 80D allows a tax deduction for health insurance premiums paid. It has been proposed to be increased from to Rs 30 up,000 to a maximum of Rs50,000 now. So, if you are paying medical insurance costs for your senior citizen parents also, your deduction limit under this section of the income-tax Act would go up to Rs75,000 from the Rs55,000 previously.
The benefits proposed in section 80D are in addition to those suggested under section 80C, which can be availed up to a maximum of Rs 1.5 lakh. The 80C benefits cover premium paid for life insurance coverage as well, apart from contributions to pension investment strategies like the Employees’ Provident Fund, National Pension System, Public Provident Fund, and tax-saving mutual funds-also called equity-linked savings schemes. Assuming that you get a 5% discount, you’ll pay Rs 38,000 for the 2-season cover. Beneath the current rules, year that too up to Rs25 you are only permitted to claim a deduction in the first,000 only.
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As per proposals in the 2018 Budget, you would be able to claim the total superior paid, proportionately, over the 2-season period, which means a deduction of Rs 19,000 in both the full years. However, you must note that in order to claim this tax deduction, you ought not to have paid the rates in cash.
The benefit is available if payment is made in any manner except in cash. You can pay using any online mode like internet banking, debit, or credit cards, or pays by a check even. Also, section 80D deduction benefits are not open to group health insurance premiums paid from your employers.
Learning Objective: 18-02 The various types of short-term financial policy. Which of the following statements is correct? Seasonal needs are financed when firms adhere to a flexible financing policy externally. A flexible financing policy will increase the risk of encountering financial distress. Long-term rates of interest tend to be less volatile than short-term rates. Most companies tend to finance inventory with long-term debt. Short-term interest rates are generally higher than long-term rates.
Learning Objective: 18-02 The different types of short-term financial policy. Each month has 30 days and a firm has a 60-day accounts receivable period Assume. The year Through the second calendar quarter of, that firm will collect payment for the sales it made during which of the following months?