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Introduction

In this article I will be writing about the tax exemption for insurance premium. It is obvious that insurance premium is in everyone’s portfolio for the tax savings. Don’t buy the insurance only for the tax savings purpose. Also learn about the other facts related to tax savings on insurance premium. If you have any doubts, please post it in the comments section. Subscribe to our free email updates.

Life Insurance Premium u/s 80C

It is one of the most widely selected option for the tax saving investment. It is good if you have taken the insurance not only for the tax saving purpose, also choose it based on your need. I have written many article about the term insurance and insurance vs investment. The following are the few points related to the life insurance premium as the tax saving component:

1. Tax deduction is allowed for the insurance premium paid for self, spouse and children.
2. Insurance Premium paid for parents are not allowed for the deductions.
3. Insurance company can be not only LIC, any other private companies also allowed.
4. If you have more than one insurance policy, you can add all the policy premiums for the deductions.
5. If you are paying the single premium plan, then maximum  20% of sum assured is allowed for the deductions.

Summary

I hope this article will be useful for knowing about the tax deduction for the insurance premium. If you have any doubts, please post it in the comments section.

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Introduction

In this article I will be writing about the Public Provident Fund(PPF) as the tax savings component. In our previous article, I have explained about the Provident Fund(PF) and its features. PPF is suitable for those who don’t have PF account or any one who is looking for the long term savings. This article explains the features and benefits of opening PPF account. If you have any doubts, please post it in the comments section. Subscribe to our free email updates.

Public Provident Fund(PPF) u/s 80C

The following are key facts about the PPF as the tax exemption investment:

1. You can deposit maximum of Rs.70000 per year.
2. PPF offers 8% interest rates.
3. Interest income is tax free.
4. It has the lock-in period of 15 years.
5. You can with draw money from seventh year onwards. If you want the money before seventh year, you can take the loan.
6. Maximum of 50% amount you can withdraw.
7. PPF account can be opened with any of the nationalized banks like SBI,etc.

Summary

I hope this article would have helped you to understand the PPF and its benefits. This savings scheme is very useful for the long term. You can plan for retirement or open an account for your child. Thank you for reading this article. If you have any doubts, please post it in the comments section.

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Introduction

In this article I will be writing about the Provident Fund(PF) or Employee Provident Fund(EPF). It is one of the important component under section 80c. This deduction is done by your employer, so it becomes the compulsory savings for every salaried person. There is few important facts which needs to get the focus. I will write it in this article. If you have any doubts, please post it in the comments section. Subscribe to free email updates.

Employee Provident Fund(EPF)

1. Saving on Provident Fund(PF) earns 8.5% interest rates on monthly cumulative basis.
2. It is compulsory that 12% of basic salary will be deducted as the PF.
3. With your interest, you can increase the PF contribution up to 25% of basic salary.
4. Interest income on Provident Fund(PF) is not taxable.
5. If you are with drawing the money before five years, the amount is taxable.
6. You can close the PF account only when you retire or leaving the company.
7. The main advantage of PF is it adds lump sum amount for your retirement apart from any other savings.
8. Up to Rs.100000 can be shown as the tax exemption.

Summary

I hope this article would have been very useful for you to know about the Provident Fund(PF). If you have any doubts, please post it in the comments section.

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Introduction

In this article I will be writing about the tax savings fixed deposit. It is one of the popular component for the investors because of the guaranteed return amount. As of now the interest rates are not much attractive hence it losses the shine. This article presents the important facts about the tax savings fixed deposit. If you have any doubts, please post it in the comments section. Subscribe to our free newsletter.

Tax Saving Fixed Deposit u/s 80C

Section 80C provides the fixed deposit option for the tax exemption. The following are the key points regarding the tax saving fixed deposit u/s section 80C:

1. It has the lock-in period of 5 years. depositing under this scheme, you will not be able to take the money before five years.
2. The interest rates for this scheme will be vary for each bank.
3. Tax savings fixed deposit is available only through banks. You can not open it with company fixed deposit product.
4. Minimum of Rs.100 is deposited.
5. Maximum of Rs.100000 is exempted u/s 80c for one financial year.
6. If you are depositing in this scheme, there will not be many other benefits which is allowed for the normal fixed deposit
   • No Partial/Premature withdrawal allowed.
   • Sweep-in not allowed.
   • No Over Draft facility allowed.
7. If you have the joint account, the deductions u/s 80c will be allowed only for the first account holder.
8. The interest income for this fixed deposit is taxable.

Summary

I hope this article will be useful for learning the basic ideas about the tax savings fixed deposit. Nowadays, the interest rates are not good, so it is not advisable in choosing the fixed deposit. If you have any doubts, please post it in the comments section.

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Introduction

In this series articles I will writing about the various components available in the section 80C. There is lot of queries asking doubts in the investment options available in the section 80c. I felt it is good idea to write series of articles explaining the components in the section 80c. I hope this series will be very useful to know about the whole information on section 80c. If you have any doubts, please post it in the comments section.

Investments Options on Section 80C

The following are the various investments options available under section 80c. This article lists only the topic which I am going to explain from tomorrow. Don’t miss reading this series if you are not familiar with section 80c. It will provide you the basic idea about the each category. This series will be running for the next 10 days. If you are interested, please get the free email updates.

1. Provident Fund(PF)

2. Public Provident Fund(PPF)

3. Tax Saving Fixed Deposit

4. National Savings Certificate(NSC)

5. Equity Linked Savings Scheme(ELSS)

6. Life Insurance

7. Pension Plans

8. Principal Payment on Home Loans

Summary

Thank you for reading this article. This article lists only the components available in the section 80c. From tomorrow onwards, series of articles explaining the each component. If you have any doubts, please post it in the comments section.

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Last week RBI has increased the CRR rates by 0.75. If you are not aware of what is CRR, this article will provide you basic idea on how the CRR will impact the finance market.

Every bank in India has to maintain the some portion of money with the Reserve Bank of India(RBI). If the percentage of CRR is increased, banks will be parking more money to RBI. It leads to less liquidity with the banks, results in tightening the monetary policy. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks.

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Introduction

In my previous article I have written about the tax exemption for medical insurance and medical claims. Also there is one important factor determines whether the hospital is eligible for claiming the expense. There is certain rules which needs to be met by the hospitals. Subscribe to our future articles here.

Check List

• There should be minimum of 15 beds in the hospital.
• Operation theater should be present in the hospital.
• 24 hours services must be provided by the doctors.

Summary

Without the above requirements, the hospital is not eligible for the medical claims. I am writing this article to teach the readers above few facts on the medical insurance. I hope this article is useful.

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Introduction

I am getting many queries from NRI readers about their investment in India. One of the question is, what are the procedures to start investing in the Indian stock market by maintaining the NRI status. In this article I will be listing the few points which needs to be done before start investing. If you have any doubts, please post it in the comments section. If you like the article, get free email updates.

How NRI can invest in Indian Stock Market?

• If you are NRI, then you must have the NRE demat account, Savings Bank account and Portfolio Investment Scheme (PIS) and trading account.
• If you want to bring the share income to India, then you must have the NRO account.
• NRO and NRE demat account you can open it from any of the agents or your banker.

What is Portfolio Investment Scheme (PIS)?

This is similar to the NRE/NRO savings a/c. The NRI can trade in the secondary stock market with Repatriation (from NRE PIS a/c) and on non-repatriation basis(from NRO PIS a/c). Demat a/c’s can be opened with signatures of Power of Attorney(POA).

How do I apply for PIS?
The application is to be submitted to a designated branch of an authorised dealer in India in the prescribed form.

Reserve Bank has authorised a few branches of each authorised dealer to conduct the business under Portfolio Investment Scheme on behalf of NRIs. These branches are the main branches of major commercial banks. NRIs will have to route their applications through any of the designated authorised dealer branches who have authorisation from Reserve Bank.

The banks Authorised to accept PIS applications are HDFC, UTI, ICICI Bank

Summary

I hope this article would be very useful for the NRI readers. It has only the basic ideas on opening the trading account. I will write the detailed procedures in the future articles. I am happy to help them if they have more queries related to the topic. If you have any doubts, please post it in the comments section.

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Introduction

Few days back I have written about the tax exemption for medical insurance. The deductions can be claimed u/s 80D. There is many other things we have to note down while claiming the medical expenses. There is many circumstances the claims will be rejected due to the insufficient documents or details submitted to the insurance company. This article provides few points worth considering before submitting your claims. If you have any doubts, post it in the comments section. If you like the article, get free email updates.

Mediclaim Reimbursement Checklist

1. Check whether You have discharge summary and other related medical documents from the hospital. Please make sure that you got all the documents before leaving the hospital.
2. Take the xerox copy of all the original bills and prescription. It may need in the future.
3. Check whether you have the signature of doctor or official stamp on the documents before submitting to the claim processing.
4. It is necessary to submit the prescription along with bills. Make sure that prescription has patient name and doctor name.
5. If it is an accident, then they will require the FIR to process the claim.

Summary

I hope this article will be useful to check the required documents before submitting the medical insurance claims. There may be any other required proofs, depends on the other factors. If you come across any thing, please post it in the comments section. Thank you for reading this article!!!

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