Enjoy tax saving benefits through investing in NPS, ELSS and Medical Health Insurance on Religareonline.com
Want to avail additional tax benefits and long term returns? Enjoy tax saving benefits through investing in NPS, ELSS and Medical Health Insurance on Religareonline.com
1. How to plan your taxes through NPS (National Pension Scheme)? What is the NPS all about?
National Pension System (NPS) is a voluntary retirement savings scheme which is specially designed to facilitate the subscribers to make decisions regarding their future through savings during their working life.
In the last budget, the government has introduced a special Income Tax exemption under Section 80CCD (1B), which has an upper limit of Rs.50,000/- per financial year per person. This is in addition to the normal benefits under Section 80CCD (1) that is available on other similar schemes.
Under NPS scheme, two types of accounts i.e. Tier I and Tier-II are available for the investors. In case of Tier-I NPS, government employees will have to contribute 10% of (basic+DA) and the government will match that contribution. In case of non-government employees, the minimum contribution has to be Rs. 500/- per month.
There are no such restrictions on the Tier-II NPS investments. Click here to Open NPS Account with Religare Online and Avail additional tax benefits.
Benefits:
- The National Pension System (NPS) gives the tax saving benefits as well as a long term retirement planning mechanism and an opportunity for investors to invest either in corporate debt or government debt or equity or a mix of both.
- The investor can also opt for an "Auto-Choice" in which case the fund will automatically allocate money based on a life cycle matrix.
- This additional choice is a major advantage of this scheme as it enables the person according to his age to select the investment plan that is most suitable.
2. How to plan your taxes through Equity Linked Savings Schemes (ELSS)? What is ELSS all about?
Equity Linked Savings Scheme (ELSS) is an efficient tax saving scheme which has a locking period of 3 years which means the specified units cannot be redeemed till the end of 3 years from the date of purchase.
No additional KYC formalities are required for ELSS. Normal mutual fund KYC is sufficient to invest in ELSS scheme.
Click here to invest in ELSS Mutual Fund with Religare Online and avail additional tax benefits.
Benefits of investing in an ELSS:
- The investor gets a tax benefit under Section 80CCD (1) up to a limit of Rs.150,000/- on ELSS investment. Of course, this will be clubbed with other investments like LIC premium, PF contribution, principal repayment of a home loan, long term FDs and the overall investments will be subject to a limit of Rs. 150,000/.
- Investing in ELSS is also a good source of stable long term returns and substantially ehances effective yield due to the tax advantages
3. How to plan your taxes through Medical Health Insurance? What is Medical insurance all about?
Medical insurance is a non-life cover which not only covers you against the cost of hospitalization and other related expenses but also appoints a nurse at home for home care, convalescence can be covered under medical insurance subject to prescribed limits.
Now-a-days most of the insurance companies directly pay the hospital for the entire medical bill amount.
Click here to Open Health Insurance Account with Religare Online and Avail additional tax benefits.
How and for whom can you buy medical insurance?
Under the Income Tax Act, you are eligible for tax benefit for medical insurance bought for yourself, on behalf of your spouse and dependent children as well as your dependent parents.
There are two types of policies i.e. stand-alone and floater policy. Floater one is more economical out of these two. Now, we can buy medical insurance online on a declaration of a good health. But in case of persons above 45 years of age, medical test is a must.
Tax benefits of medical insurance:
- Contributions towards recognized medical insurance policies are eligible for additional tax benefits under Section 80D of the Income Tax Act. This benefit is over and above your other sections like Section 80CCD. Under the Income Tax Act amendments made in Budget 2015-16, medical insurance premium up to Rs. 25,000/- per year paid for the life of the insured and his spouse and children is eligible for full tax deduction.
- In addition, there is a supplementary tax break of Rs.30,000/- per year for medical Insurance premium paid on behalf of your parents who are senior citizens. Thus you are eligible to claim up to a maximum of Rs.55,000 as premium towards medical insurance.
- In case of Very Senior Citizens above the age of 80 years, they may not be eligible for medical insurance. Hence any medical expenses incurred for them will be eligible as a tax rebate under Section 80D up to a maximum of Rs. 30,000 per annum.
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