Gifts from specified relatives are tax exempt

I will be taking a home loan from a financial institution for 20 years. However, in the sanction letter, it is mentioned that I will have to take insurance coverage for the loan amount from an insurance provider they have a tie-up with. Is this legal?
No financial institute can force you to compulsorily take insurance coverage from a specific body. However, it is in the interest of your dependents that you take a term insurance plan so as to cover the amount outstanding on your loan account. This will ensure that your dependents are not burdened with the home loan should anything untoward happens to you.

I am 23 years old and want to take a mediclaim policy for parents. Please guide me about the process. Can I claim tax benefit for the same?
It is always advisable to have separate individual cover for your parents, as over the years, claims are likely to be significant. To know which plan is best suitable for your need, please check our health compare quote at http://www.apnainsurance.com/health-insurance-india/compare.html. You can get a separate deduction of Rs15,000 (Rs20,000 if any parent is above 65 years of age) for the premium paid on the policy of your parents. This is over and above the deduction of Rs15,000 available for a mediclaim for yourself, your spouse and your children.

My son lives in Singapore and has gifted me Rs2 lakh. If this sum is treated as my income for the year, it would put me in the highest tax slab. What should I do to prove that this sum is a gift?
Gifts received from specified relatives, including sons, is exempt from income-tax. Gift tax was abolished in 1998 so there is no gift tax liability. But to prove that it is a gift from your son, you need to show a bank statement of the account from which these funds were transferred to you. Also, get proof of the source of income of your son. An affidavit or declaration from your son about this gift is also advisable.

My son’s school gives me a receipt for only about 80% of the total tuition fee. Does that affect the tax benefit I enjoy on the fee?
Tuition fees of up to Rs 1 lakh a year paid to a university, college or school for the full-time education of a child is eligible for deduction from income. Since you have received proof of only 80% of the fees, you will be able to claim the benefit for which you have received the receipts from the school

I have invested Rs 15 lakh in the senior citizen savings scheme with my wife as the nominee. Can she also invest Rs 15 lakh in her own name after she turns 60?
Under the senior citizen’s savings scheme, one is considered a senior citizen on turning 60. So your wife can invest Rs 15 lakh in her name. However, if after she opens the account on turning 60, either of you dies and the other person is the nominee, than that particular account will be paid off and cannot be continued by the surviving spouse.

The writer is CEO, Apna Paisa, a search comparison engine for loans, insurance and investments. He can be reached at hrdna@apnapaisa.com