By Chirag Nangia
I retired in November 2020 and took a Mediclaim Policy in February 2021. In amongst, I have incurred some health-related costs on preventive well being verify ups, doctors’ consultation costs and dental treatment options. Can I claim tax exemption on these costs (incurred out of my personal pocket) just after retirement, and ahead of taking any health-related insurance coverage cover, and below which Section of 80D? Further, can the price of medicines also be integrated for tax exemption below health-related costs for Section 80D?
—A Sen
According to Section 80D of the Income Tax Act, senior citizens might avail a deduction of up to Rs 50,000 for payment of premium towards health-related insurance coverage policy. This limit incorporates costs incurred on preventive well being checks topic to the internal limit of `5,000. However, if no quantity is paid as premium on well being insurance coverage, health-related costs incurred by such senior citizens might be claimed below Section 80D, topic to the monetary cap of Rs 50,000. To claim deduction, all the health-related expenditure should be paid in any other mode other than money (i.e. through channels such as credit card, debit card, and net-banking or other digital channels). Medical costs might involve health-related consultations, medicines, hospitalization costs, and so on. Accordingly, for FY 2020-21, you either claim deduction of health-related costs incurred or well being insurance coverage premium paid, topic to the ceiling of Rs 50,000.
I am a senior citizen. I want to transfer some shares to the Demat accounts of my daughter and NRI son as a present. I will inform them of this transfer by means of e mail, with guidance to preserve the message to be shown to any authorities, if and when necessary. Is it enough to prevent any difficulty in future?
—Rakesh Saxena
Since shares are viewed as “movable property”, it is not mandatory to execute a present deed. However, in order to generate a legal record, it is ideal to execute one. A straightforward acknowledgement might also serve the objective. Further, please note that capital instruments are permitted to be transferred to NRI by way of present topic to satisfaction of particular situations and recommendations of RBI in this regard.
The writer is director, Nangia Andersen India. Send your queries to