Tax Benefits under Section 80D, 80DD and 80DDB relate to medical expenses and health insurance/mediclaim.

Tax Benefits under Section 80D, 80DD and 80DDB Complete guide income tax deductions under sections 80D, 80DD and 80DDB which relate to medical expenses and health insurance/mediclaim. Good understanding will help you in substantial tax savings. Section 80DEvery family has regular medical expenses. This may be towards a health insurance premium, or expenditure related to a family member’s disability/critical illness. The Income Tax Act of 1961 has made provisions to reduce this burden through tax deductions under section 80D, 80DD, 80DDB. Read on to understand how to use these sections to your benefit. Section 80D in Respect to Health Insurance Premiums Investments made towards payment of health insurance premiums, qualify for a tax deduction under section 80D. Available Deduction - For individuals less than 65 years of age, amount of health insurance premium paid or Rs. 15,000, whichever is lesser. For senior citizens above 65 years, amount of health insurance premium paid or Rs. 20,000, whichever is lesser. A further deduction of Rs 15,000 could be claimed, for buying health insurance policy for your parents (Rs 20,000 if either of your parents is a senior citizen). This is irrespective of whether they’re dependent on you or not. No deductions can be claimed for in-laws. Scope of Deduction - Individual assesses can claim deduction for premiums paid towards health insurance of self, spouse, parents and children. For HUF assesses, premium paid for insuring the health of any member of the HUF, can be used for deduction. Key Factors to keep in mind The premium may be paid by any mode of payment, other than cash. The health insurance premium that you pay must be from the taxable income applicable for the year you claim. Premiums should not be from gifts received by you. Part payment of premium is allowed. For example, suppose your parents contribute 50% of their health insurance premium and you pay the balance 50% of their premium. In such a case, you could avail the deduction for the amount contributed by you and your parents too could avail deduction for their contribution. Section 80DD for Medical Treatment of Handicapped Dependents If you are incurring expenditure for the treatment of your handicapped dependent, you could claim a deduction under section 80DD. Available Deduction - Rs 50000, or actual expenditure incurred, whichever is lesser. For severe handicap conditions Rs. 1,00,000 is the deduction limit. Scope of Deduction - Deduction can be claimed for dependent parents, spouse, children and siblings. Dependents must not have claimed any deduction for their disability. Deductions are permissible in either of the following cases. a) Costs incurred for medical treatment, training or rehabilitation of a disabled dependent, including amount spent for nursing. b) Amount paid towards an insurance scheme for the maintenance of your disabled dependent in case of your untimely death. Meaning of Disability- Disability means a person suffering from 40% or more of any of the below disabilities. A severe disability condition is 80% or more of the disabilities. a) Blindness and Vision problems b) Leprosy-cured c) Hearing impairment d) Locomotor disability e) Mental retardation or illness Key factors a) Individuals would need to produce a copy of the disability certificate as issued by the central or state government medical board to claim deduction. b) Insurance policy obtained must be in your name and should be a policy for life. It could pay either an annuity or a lump sum amount for the benefit of the dependent on your death. c) If the disabled dependent predeceases you, the policy amount is returned to you, and treated as income for the year in which you receive it, thus fully taxable in your hands. Section 80 DDB for Treatment of Specified diseases Costs incurred for treatment of specified illnesses, could fetch you a tax benefit under section 80DDB. Available Deduction - For individual assesses less than 65 years of age, a deduction limit of Rs. 40,000 is applicable. For a senior citizen, the limit is Rs. 60,000. Scope of Deduction - Deduction is applicable for treatment of self, spouse, children, siblings, and parents, wholly dependent on you. Diseases covered a) Neurological Diseases (where the disability level has been certified as 40% or more). b) Parkinson’s Disease c) Malignant Cancers d) Acquired Immune Deficiency Syndrome (AIDS) e) Chronic Renal failure f) Hemophilia g) Thalassaemia Key Factors If you are already receiving any reimbursement for the treatment from your insurance company or employer, deductions cannot be claimed. If you are receiving partial reimbursement, the balance amount can be used for a deduction. A certificate would be required from a specialist working in a government hospital, as proof for the specified ailment.

WEEKLY MARKET UPDATE AS ON MONDAY 07 th JANUARY 2013

WEEKLY MARKET UPDATE AS ON MONDAY 07 th JANUARY 2013

NIFTY SPOT - (6016)

In our last weekly report we had mentioned 5955 as an important level. Below 5955 we were expecting 5815 and above 5955 were expecting 6030. NIFTY broke above 5955 on wednesday and stayed above it and hit a weekly  high of 6021 and closed the week on a strong note @ 6016. During the current week the NIFTY has support @ 5961 - 5948 - 5931 and resistance @ 6061 - 6092 - 6169. In the current week if the NIFTY should trade in a range of 6060 - 5960 with a bullish bias. Even though the NIFTY can trade in a sideways range, the undercurrent in the market will be bullish and buy on declines will be the preferred strategy. Once the NIFTY breaks out of the trading range and moves decisively above 6061, it can move to 6169 - 6200, where strong profit booking is likely to emerge.

POSTIONAL TRADING CALL

1. Buy United Phosphorous @ 133-135, or above 137.25, tgt 148 - 159. STOP LOSS 130. 2. Buy Ashok Leyland @ 26. Stop Loss 25. Tgt 32-36.

WEEKLY MARKET UPDATE AS ON TUESDAY 17 th DECEMBER 2012

WEEKLY MARKET UPDATE AS ON TUESDAY 17 th DECEMBER 2012

NIFTY SPOT - (5880)

In our last weekly report we had mentioned that even though we were anticipating a correction in the markets,  the undercurrent would remain bullish. During last week NIFTY made a high of 5965 and a low 5839  and closed the week @ 5880. We would once again like to reiterate our bullish stand and even though the indices are likely to take some time off, stock specific movements and individual scrips are likely to be in limelight. In the current week NIFTY has support @ 5833 - 5820 - 5796, while resistance can be expected at 5892 - 5925 - 5965. While 5925 is the most important reversal point, once the NIFTY moves above 5965,  it will easily rise above 6000 and then the next targets are 6033 - 6186. In the current week NIFTY is likely to trade with a minor -ve bias on monday & tuesday, whereby it can have  a small dip to levels of 5833 by tuesday. If during this fall if the NIFTY does not fall below 5790 (bull stop loss),  then we can expect a very powerful upmove from around 5833 levels. Once this upmove crosses above 5925,  the 8 days NIFTY correction which began on 6th december can be assumed to be over. In order to confirm the bottom expect the NIFTY to post a powerful upmove from around 5833 levels which will take the NIFTY above 5965 in the next 3 trading sessions ( before friday). In the current week NIFTY is poised for a very sharp reversal (sl 5790) on tuesday 18th Dec, which also  happens to be the day on which the RBI policy is likely to be declared. Trade with a postive bias, if the RBI policy has some good news for investors and especially when the NIFTY holds above 5790 and then moves above 5925. Once NIFTY zooms above 5925, the next days headlines are likely to be "RBI BOOST  HELPS NIFTY BREACHES ABOVE 6000"

WEEKLY MARKET UPDATE AS ON TUESDAY 11 th DECEMBER 2012

WEEKLY MARKET UPDATE AS ON TUESDAY 11 th DECEMBER 2012

NIFTY SPOT - (5909)

In our last weekly report we had mentioned that even though we were anticipating a correction in the markets, the undercurrent would remain bullish. During last week NIFTY made a high of 5943 and a low 5839 and closed the week @ 5908. We would once again like to reiterate our stand that even though the indices are likely to take some time off, stock specific movements and individual scrips are likely to be in limelight. In the current week NIFTY has support @ 5848 - 5820 - 5784, while resistance can be expected at 5950 - 6061 - 6138. In the current week there is a possibilty that the NIFTY holds above 5877 on tuesday and then quickly moves above 5950 before thursday, which can signal an end to the correction. A rise above 5950 will mean a fresh  upmove has begun. In case the NIFTY breaks below 5877 then it can fall further to to 5848 - 5820 where new support will emerge. As the action shifts to midcap stocks, buy on declines remains the strategy.

POSTIONAL TRADING CALL

1. Buy Dhanlakshmi Bank @ 70. Stop loss 62. Target 80 - 84 -94 2. Buy CIPLA @ 416, sl 409.5, target 450 - 460

WEEKLY MARKET UPDATE AS ON MONDAY 03 rd DECEMBER 2012

WEEKLY MARKET UPDATE AS ON MONDAY 03 rd DECEMBER 2012

NIFTY SPOT - (5880)

Last week the NIFTY moved precisely as we had mentioned in our weekly report. In our last weekly report we had mentioned that if the NIFTY held above 5585 and moves above 5650 it can post a strong rally to 5748 /5843.  In this upmove NIFTY was expected to move above 5778 on or before 30th November (Time & Price target), to give a fresh breakout for higher targets of 5874 - 5600. Accordingly NIFTY posted a strong rally and broke above 5778 on 29th November, thereby achieving its Time & Price target. By confirming with a Time & Price target breakout NIFTY  now has the potential to rise to much higher levels in the next 2 months. In the current week NIFTY has support @ 5782 - 5745 - 5710 while resistance can be expected at 5900 - 6031 - 6183. In the last 8 trading days NIFTY has moved up by 350 points from, 5550 to 5900. Hence it will be logical & healthy for the NIFTY to consolidate over its last weeks gains befo a fresh upmove  is commenced. Ideally in the current week NIFTY can trade in a consolidation mode with a a postive bias. Hence eventhough the NIFTY is likely to consolidate in 5900 / 6000 to 5745 / 5610 range, the undercurrent  will be strongly postive and trades should utilise all declines to support levels to buy for higher targets  next week. Action is likely to be witnessed in midcap stocks as the frontline stocks take a break.

POSTIONAL TRADING CALL

Buy Dhanlakshmi Bank @ 64-65. Stop loss 59.5. Target 80 - 85.

WEEKLY MARKET UPDATE AS ON MONDAY 19 th NOVEMBER 2012

NIFTY SPOT - (5574)

In the last week NIFTY made a weekly high of 5719 on monday and then fell down to a weekly low of 5560 on friday, and then closed the week @ 5574. It must be noted here that we are in a correction which has begun @ 5815 on 5th octobe, and has completed 28 trading days. Typically a fall at the end of a major consoditaion shows that the weak hands are exiting.  While the NIFTY is still in a fall, it is in its final stages of the fall and hence traders should refrain from aggressive selling at lower levels. In the current week NIFTY has support @ 5534 - 5484 - 5452 while resistance can be expected at 5625 - 5678 - 5751. As we are in an intermediate downtrend, sell on rally is the strategy in the first half of the week. However as  we are in the final stages of the correction, sell only in small quantities with tight stop loss and small down targets. On monday sell on rally to 5600 - 5615, with a tight stop loss @ 5625. If the NIFTY is unable to rise above 5625 on  monday it can then fall down to 5543 - 5475 in the span of next 2-3 days. On the down side strong support exists @ 5484 -5475 levels and traders can use declines of 2 days to 5545 / 5484 - 5475 levels  to cover shorts and go long with a stop loss of 5440. BUY ON 2 DAYS DECLINE TO 5545 / 5475, STOP LOSS 5400, TARGET 5850.

POSTIONAL TRADING CALL

Buy REC @ 220. Stop loss 213. Target 240-250.

WEEKLY MARKET UPDATE AS ON MONDAY 5 th NOVEMBER 2012

NIFTY SPOT - (5698)

In our last weekly update we had suggested that the NIFTY can fall down to 5617 by tuesday, where buying can attempted for a rise of 144 / 233 points. We had also suggested to be cautious in view of the RBI policy and review your postion after the RBI credit policy. Accordingly, Last week NIFTY made a low of 5583 (after RBI policy) on wednesday and then jumped up to 5711 and finally closed the week @ 5698. In the current week NIFTY has support @ 5660 - 5647 - 5632 while resistance can be expected at 5752 - 5785 - 5871.  A weekly close above 5705 would be bullish and can take the NIFTY toits next target of 5871 by 15th November. In the current week NIFTY has strong support level of 5660. As long as the NIFTY maintains above this it  can slowly hit a target of 5900+. In case the NIFTY breaks decisively below 5660 the next support level  will be 5632 and after that 5575. In such a scenario the NIFTY can remain in a small sell mode upto 10th November,  with lower tragets of 5575 / 5550.In such a case falls upto 5550 can used to go long with a stop loss of 5530 on a closing basis.