If you have heard the term insurance deductibles while shopping for insurance, but don't know what it is, read this article to find out
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If you have heard the term insurance deductibles while shopping for insurance, but don't know what it is, read this article to find out
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When you earn income above a specified limit, you are obligated by the government to pay certain taxes to the latter. This tax money is essentially used to provide for several welfare projects and services designed for your convenience. Here we understand a little more about what is income tax, what is the Income tax above 5 Lakh and the standard deduction on salary in this case.
As the name inevitably suggests, income tax refers to the specific tax that is computed on your total taxable income according to the specific tax slab that it falls under. When you add your income earned from various sources, such as rent, annual salary, capital gains, and the like, you derive your gross total income. From this, you can then remove the standard deduction on salary as well as certain other tax deductions that you may be eligible for as per law. You can then derive your taxable income.
If the above method sounds confusing or complicated, you can go for an easier and more convenient alternative – using the income tax calculator. Let’s take a look at what that is.
It is a simple, fast and convenient-to-use online tool that helps you calculate the total amount of tax that you need to pay in seconds! The tax payable is calculated on the basis of your taxable income, age, expenses incurred, investments made, and the interest payable on home loan, according to the relevant law of taxation.
Below is a small example of how to use the income tax calculator for computing your tax liability for the FY 2022-23:
Also Read: Income Tax Slabs Old Regime: Income Tax Slabs and Rates for FY 2022-23
Now let us look at the tax slab under which the income tax above 5 Lakh of a salaried person falls under:
Total Taxable Income | Tax Under New Tax Regime |
Up to Rs. 2,50,000 | None |
Rs. 2,50,001 – Rs. 5,00,000 | 5% of the income earned over Rs. 2,50,000 + 4% cess (surcharge) on income tax |
Rs. 5,00,001 – Rs. 7,50,000 | Rs. 12,500 + 10% of the total income earned over Rs. 5,00,000 + 4% surcharge |
Rs. 7,50,001 – Rs. 10,00,000 | Rs. 37,500 + 15% of the total income earned over Rs. 7,50,000 + 4% surcharge |
Rs. 10,00,001 – Rs. 12,50,000 | Rs. 75,000 + 20% of the total income earned over Rs. 10,00,000 + 4% surcharge |
Rs. 12,50,001 – Rs. 15,00,000 | Rs. 1,25,000 + 25% of the total income over Rs. 12,50,000 + 4% surcharge |
Over Rs. 15,00,000 | Rs. 1,87,500 + 30% of the total income earned over Rs. 15,00,000 + 4% surcharge |
Under the New Tax Regime, the tax rates calculated for all the categories of individuals, such as salaried individuals below 60 years old, senior citizens over 60, as well as super senior citizens above 80, is the same. This means that the basic benefit of the exemption limit for senior and super-senior citizens in the country hasn’t increased much.
That said, there is some standard deduction on salary considered for professional tax exemption for the FY 2021-22:
>>Income Tax Saving: How Section 80C Of The Income Tax Act Works
Summing Up
As seen in the blog, the income tax rates vary for different individuals based on their income earned and the tax slabs too differ based on these conditions. It is therefore important to always check the income tax slab that you fall under before computing your income tax, such as the one shown in this blog for income tax above 5 lakh. It is also equally important to consider the standard deduction on salary and the various tax exemptions before calculating the taxable income. Always use an online tax calculator for faster and accurate calculations.
For more information on the various income tax slab rates for the FY 2022-23, visit PayBima.
Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.
The maximum amount of Professional Tax that any state in India is allowed to levy on professionals is up to Rs. 2,500. This is regardless of the fact that the tax imposed is based on the income earned by a professional.
Professional tax for individuals is computed based on their annual salary as well as predefined tax slabs that their salary falls under. It may range anywhere between Rs. 200 and Rs. 2,500.
Income earned up to Rs. 2,50,000, is not taxable. However, if it is more than Rs. 2.5 lakh, income tax is payable. However, if this income is not over 5 lakh, the liability for tax gets canceled by tax rebate up to Rs. 12,500 under Section 87A of the ITA.
Tax paid up to 31st March every financial year is considered as advance tax.
Any individual whose estimated tax liability for the particular financial year exceeds or is equal to Rs. 10,000 is eligible for advance tax payment under Section 208 of the ITA.
The post Income tax above 5 Lakh for FY 2022-23 appeared first on Paybima Blogs.
We already know the innumerable benefits of buying term insurance for ourselves as well as our loved ones. However, there is a certain condition attached to buying a term plan – your age. Yes, as you grow older, it can become difficult, in fact nearly impossible after a time, to buy term insurance. This blog details more about the term insurance age limit.
A lot of people interested in buying term insurance ask, “Up to what age can we buy the term plan? Is there an age limit to buying term insurance?” The answer is yes. All term insurance plans have a specific age limit after which buying the policy is not permissible.
Term insurance policies have certain specific eligible age criteria that define the minimum and maximum age limits for entry into the plan.
Most plans generally provide an age range of 18-65 years for buying term insurance (however this criteria may vary between different plans and it’s a good idea to check with your insurer before buying). That said, the minimum age for buying a term insurance plan is always 18 years, regardless of the maximum limit. This means that one needs to be an adult in India in order to purchase term insurance.
Now, coming to the age defined by insurance companies after which buying term insurance is not possible. Most insurers cap the age limit at 65 years (here again, this limit may vary from one insurer to another so always check). Also, there are some term insurance policies which can still be purchased after the age of 65 years.
How is that possible, you’d think! Well, these are special kinds of term insurance plans specifically designed for the elderly to help them sail through old age with ease. Such plans are known as Term Plans for Senior Citizens. They are meant to offer the benefits of insurance to the elderly past 60 years of age.
Now that we know that there is a term insurance age limit, it only makes sense to buy this plan at an early stage of your life. This is because when you’re younger, it would be much easier to buy term insurance without difficulty and it would be helpful as well. Let us look at some of the key benefits of purchasing life term insurance early on:
Read More: Benefits Of Choosing A Term Insurance At Younger Stage Of Life
We learned above the maximum age for term insurance purchase. Now let us quickly understand the maximum age limit up to which the policyholder can opt for risk coverage from the insurer.
While the term plan age limit is only 65 years, after which it is not permissible to purchase a standard term insurance plan, one can still opt for coverage of risks as part of the term plan up to at least 99 years old.
Some insurance companies do provide risk insurance coverage to senior citizens for longer and therefore it is important to check with your insurer about the same while purchasing a term plan (even though early on in life).
>>Things to Know Before You Buy Term Insurance Policy
While we are discussing the subject of term plans and the term insurance plan age limit for both purchase as well as risk coverage, it would be helpful here to list out some of the best insurers offering term plans to individuals:
Name of the Insurer | Name of the Plan | Claim Settlement Ratio (CSR) of the Insurer | Sum Assured Range Offered | Sample Premium to be Paid Per Annum (calculated for a male aged 30 years with an annual income of Rs. 500,000) |
Aditya Birla | Life Shield Plan | 98.04% | Rs. 50,00,000 – no limit | Rs. 5,591 |
Edelweiss Tokio | Total Protect Plus | 97.01% | Rs. 25,00,000 – no limit | Rs. 4,902 |
HDFC Life | Click 2 Protect Life | 98.01% | Rs. 50,00,000 – no limit | Rs. 7,185 |
Bajaj Allianz | Smart Protect Goal | 98.48% | Rs. 50,00,000 – Rs. 10,00,00,000 | Rs. 7,348 |
ICICI Pru | iProtect Smart | 97.90% | Rs. 50,00,000 – no limit | Rs. 8,021 |
Summing Up
Term life insurance is an absolute necessity for a major section of the population in India. However, the insurance sector regulates the entry age for the plan to save insurers from providing risk coverage to the elderly who are at high risk healthwise. Secure your future today. Buy term insurance for you and your loved ones for financial stability both in the present and the future.
Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.
If you happen to outlive the tenure of your term plan, the coverage of your policy ends. In this case however, you can either convert the plan to permanent life insurance before its expiry or buy a new plan. In addition, you may also choose to continue using the policy without coverage benefits.
Upon the expiry of your term life insurance term, the benefit of life insurance cover also ends.
Generally, the longest time period for which most insurers grant term insurance is 40 years.
The post At what age can you no longer get term life insurance in India? appeared first on Paybima Blogs.
Many taxpayers are unaware of the fact that medical bills can be claimed u/s 80D. However, when you buy a medical policy for a senior citizen or an elderly above the age of 60 years, it attracts tax deduction on the premium paid as per section 80D of Income Tax Act. Hence, the medical or health insurance policies bought for your parents or bought by the elderly allow tax benefits of up to INR 50,000 per financial year. So, as compared to tax benefits earned by non-senior citizens who are below 60 years, the medical expense deductions under the income tax act for senior citizens is better.
In this post, let us discuss the tax benefits received under 80D medical expenditure in detail.
Here’s a table to make you understand the tax deductions under section 80D better:
Premium paying person | Tax Deduction u/s 80D
(Individuals below 60 year) |
Tax Deduction u/s 80D
(For Senior Citizens) |
Total Tax Saving u/s 80D (Maximum Deduction) |
Elderly/Senior Citizens (themselves) | Not Applicable | INR 50,000 | INR 50,000 |
Individuals paying separately for own health plans and parents | INR 25, 000 | INR 50,000 | INR 75,000 |
Senior citizens paying for themselves and their super senior parents | INR 50,000 | INR 50,000 | INR 1,00,000 |
Also Read: Senior Citizens Can Avail Tax Break on Interest Income Under Sec 80TTB
Tax deductions of up to INR 50,000 is available under medical expenditure 80D section for the elderly. This amount can be claimed under various health treatments including preventive health check-ups and health insurance premium payment etc. However, in case of preventive health check-up, the maximum deduction is limited to INR 5000 per financial year, which is included under the overall tax deduction limit of INR 50,000 for senior citizens. The table below shows different scenarios of tax deduction limits under section 80D.
Category | Maximum Deduction Limit u/s 80D | Maximum Deduction Limit u/s 80D | Maximum Deduction Limit u/s 80D |
Premium paid for insured, spouse, dependent children & parents (all non-senior citizens) | Premium Paid for insured, spouse and dependent children (non-senior citizens) & parents (senior citizens) | Premium paid for insured, spouse and dependent parents (all senior citizens) | |
Premium paid towards Health Insurance (insured, spouse & children) including INR 5,000 towards preventive health check-up | INR 25,000 | INR 25,000 | INR 50,000 |
Premium paid towards Health insurance and Preventive Health Check-up (parents) | INR 25,000 | INR 50,000 | INR 50,000 |
Medical bills of insured, spouse and dependent children | Not Applicable | Not Applicable | Comes under the maximum tax limit of INR 50,000 |
Medical bills for parents | Not Applicable | Comes under the maximum tax limit of INR 50,000 | Comes under the maximum tax limit of INR 50,000 |
Maximum Tax Deduction Limit u/s 80D | INR 50,000 | INR 75,000 | INR 1,00,000 |
Also Read: Health Insurance Plans for Senior Citizens
A taxpayer can avail tax deductions for the premiums paid for health insurance under section 80D for him/herself and other family members including spouse, children and parents. Hence, these people are eligible for tax deductions under section 80D medical expenditure .
Besides Section 80D, some medical conditions are covered under Section 80DDB. Under this section, the individuals below 60 years can avail a deduction of up to INR 40,000, while the senior citizens can claim tax deductions of up to Rs 1,00,000.
Paying premiums online makes it easy to claim medical expense deduction on your health insurance plan. Try not to use cash payments for paying off premiums. You may use debit or credit card, UPI, net banking, wallets or even cheque to pay off premiums or to pay medical expenses.
In case of preventive checkups, the payment can be done in cash. These checkups are done periodically to stay protected from diseases. Hence, if a medical condition is diagnosed under a preventive health check-up, the right treatment can be availed to cure the condition.
There is no such specific list of documents mentioned by the Income Tax Act that is required to claim tax benefits under Section 80D.
However, as a safe practice it is good to save and document every piece of evidence such as medical bills and invoices, diagnostic test reports, documents regarding medical history, doctor’s prescription, etc. for reference purposes.
Hence, you are required to keep the bills and reports of medical expenditure for senior citizen parents safely to avail tax deductions.
Read More: Best Health Insurance Plans for Senior Citizens in India
To Sum Up
So, as seen in the post above, the tax benefits received under section 80D for senior citizens can be availed to save enough on tax each financial year. Hence, the next time you file for income tax returns, don’t forget your medical bills. Moreover, if you have parents who are senior citizens or you yourself is a senior citizen paying health insurance premium, you can claim for such expenses while filing for income tax returns.
Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.
Yes. Section 80D allows the policyholder to have tax benefits by claiming health expenses incurred on insured, spouse, dependent children and parents.
Under Section 80D, the policyholder gets a deduction for preventive health check-ups of up to INR 5,000. This deduction is included within the total limit of INR 25,000 for policyholders below 60 years. In case of senior citizens, the deduction available is INR 50,000 on medical expenses.
The policyholder can claim this deduction on medical treatments incurred on the policyholder, spouse, dependent children and parents.
The highest deduction that can be claimed by senior citizens in a fiscal year is INR 50,000. To avail tax deduction, it is better not to pay medical bills using cash as cash is not evaluated or taken into consideration by insurance providers. Hence, it is better to pay via card, online wallets or net-banking etc.
The medical bills are applicable for tax deductions. Thus, the taxpayer can directly make a claim by filling up the tax deduction form for medical exemptions.
To prove your medical expenses, keep a record of receipts of medical expenses, hospital bills, other medical documents and bills which you can show as proof of medical expenses. Further, you must also keep record of the health insurance premium receipts that you are paying towards your as well as your parents health insurance to claim under Section 80D.
Section 80D allows the policyholder to save tax by claiming medical insurance premium and other medical expenses incurred on self, spouse, dependent children and parents. If you are willing to claim for medical expenses under this section for elderly above 60 years old, you have to give proof of the person's age to be eligible to claim the medical expenses.
The post How senior citizens can save tax with medical bills u/s 80D? appeared first on Paybima Blogs.