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.

WEEKLY MARKET UPDATE AS ON MONDAY 29 th OCTOBER 2012

NIFTY SPOT - (5664)

In our last weekly update we had mentioned that if the NIFTY holds above 5633, then it can rally to 5745 / 5766 in the next 3-5 days, which should be used to sell for a fall of 200/300 points. Accordingly, NIFTY made a high of 5722 (at our first resistance point) and  fell down slowly to make a low of 5642 on friday and closed the week @ 5664. One noteworthy point of last weeks trade was that on two differrent days the global markets were down strongly and also the DOW JONES index was down by over 200 points, however NIFTY held on its own strength and finally fell only by around 80 points from the weekly high. This itself indicates that the NIFTY has lot of inherent strength and can post a strong rally from around 5633 level. In the current week NIFTY has support @ 5617 - 5578 - 5530 while resistance can be expected at 5719 - 5745 - 5815 - 5925. Ideally in the current week expect the NIFTY to trade with a minor negative bias till tuesday, during which it can fall down to levels of around 5617. If in the first two days if the NIFTY does not fall much or falls only till 5617, then it should be taken as a sign of bullishness.  In such a scenario the NIFTY can post a strong rise of 144 / 233 points from the weekly low once it moves above 5700 / 5719, to higher targets of 5761 - 5851 - 5925. Only if the NIFTY breaks down and trades below 5617, can it fall down to 5578 - 5530. As this is not normally expected, any nasty surprises from the RBI credit policy on tuesday can trigger this fall. As we have the RBI credit policy in the current week which will make the current weeks NIFTY movement news based. We are fully aware  that the RBI policy has the potential to make or break the indices and would hence suggest readers to be very cautious and also keep minimum postions till the RBI credit policy is finally through. We would have a buy on decline strategy but would also like to wait for the RBI poilcy to give further confirmation to the same

WEEKLY MARKET UPDATE AS ON MONDAY 17 th SEPTEMBER 2012

NIFTY - (5578)

NIFTY In our last weekly report we had suggested to trade with a bullish bias, for targets of 5475 - 5530, with a stop loss of  5258 on a weekly closing basis. We had also suggested to book profits above 5475. NIFTY traded with a bullish bias  throughout the week and the much awaited diesel price hike, which implied the government was ready to take serious  measures to improve the economy, added further impetus to the markets and the NIFTY spurted to close the week strongly  at 5578. Over the weekend the government has announced further liberalisation measures, with much awaited FDI in aviation, retail,  power exchanges and cable networks, which should ensure a robust monday morning opening. Further, we also have the RBI  credit policy on monday. All these events make monday a high volume day and a like trend change date. Monday is likely to be  a day with unmatched bullish euphoria, short covering, action packed accompanied with high volumes, which is not likely witnessed  again in the near future. Check if the high recorded on monday/tuesday is not exceeded in the week and it is quite likely that  we record the weekly high in the first half of the week. In the current week NIFTY has support @ 5646 - 5702 - 5874 while resistance will be @ 5467 - 5426 - 5362. We continue to have  bullish view on the NIFTY with a weekly closing stop loss of 3258. In the current week the key NIFTY pivot to be watched is 5632. If the NIFTY manages to trade above 5632 ( is expected to  trade above 5632, on FDI news) then it will be a bullish signal for the long term, with a stop loss of 5215. In such a scenario  NIFTY has the potential to rise upto 6550 by April 2013 ( with a stop loss of 5215). However, only if the NIFTY is unable to rise above 5632 , and then falls down and breaks 5215, then it can fall further to levels  of 4800. The chances of this bearish wave count are considerably reduced once the NIFTY trades above 5632. In the current week, in view of the exceptionally bullish euphoria prevailing in the market, chances are quite high that the NIFTY  makes a significant intermediate high on monday/ tuesday at around 5650 - 5700 levels and enters into a slow sideways corrective  mode, which can make the NIFTY trade in range of 5700 - 5500 - 5400 for the next few days. We would suggest profit booking on  monday/ tuesday and again scout for buying opportunites on declines near 5500 -5400 with a stop loss of 5215.

FLAT MARKET IN LINE WITH REST OF ASIAN MARKETS....ALL WORLD WAITING FOR BIG EVENT TONIGHT AT 10-45 PM INDIAN TIME....FED DECISION ON QE-3.....NOW FOR TODAY

5460 NF WILL ACT AS FIRST HURDLE OF BULLS....ON FALLS 5410 NF BULLS LAST HOPE SUPPORT

ONLY BREAKING THIS RANGE WILL SET FURTHER MOVES FROM BULLS OR BEARS.....WATCH

GODREJ INDUSTRIES LTD

 SIGNATURE  CALL!!!

CMP:280

BUY 50% AT 280

ADD REST 50% AT 260

AFTER BREAKING OUR LOWER LEVELS WE WILL UPDATE STOPLOSS

TARGET 340/370

TIME HORIZON:30-45 Days

 MArket Update On 12 sept

HIGHER MARKET IN LINE WITH REST OF ASIAN MARKETS AND IN LINE WITH SUPPORT TO MARKET YESTERDAY BY FII'S......BUT AS WE HAVE IIP FIGURES TODAY SO EYES ON IT.......NOW FOR TODAY

5450 NF WILL ACT AS FIRST HURDLE OF BULLS....ON FALLS 5390 NF LAST HOPE SUPPORT OF BULLS

ONLY BREAKING THIS RANGE WILL SET FURTHER MOVES FROM BULLS OR BEARS.....WATCH

WEEKLY MARKET UPDATE AS ON MONDAY 10 th SEPTEMBER 2012

NIFTY SPOT - (5358.7)

NIFTY traded as per anticipation for the the 1st half of the week, however the ECB meeting gave a much required impetus to the global markets and the Indian markets also joined with the global rally. It must be noted that that we wanted the NIFTY to give a weekly close below 5258, for further bearishness. It is this closing level that the NIFTY has strongly defended, which keeps the uptrend still on. Ironically heavyweight stocks like SBI, ICICI, Axis, Sterlite, REC, PFC have already peaked out and have recorded major falls while the HIndustan Lever, ITC, TCS, INFOSYS continue to post gains. In the current week NIFTY has support @ 5309 - 5258 - 5215 while resitance will be @ 5400 - 5444 - 5475 - 5530. We continue to have bullish view on the NIFTY with a weekly closing stop loss of 3258. Even though the market is still in an upmove the upmove appears to be a weak upmove. In this rally the NIFTY should ideally have upsdie targets upto 5475. However the NIFTY should be considered to be bullish only if it moves above 5640. If in this rally if the NIFTY is unable to move 5640 we can expect a sharp fall which can take the NIFTY to sub 4800 levels quickly. Hence profit booking is highly recommended above 5450 levels. Trade bullish but with small quantity and book profits above 5450.

Market Update on 11 th sept

WEAK MARKET IN LINE WITH REST OF ASIAN MARKETS......NOW FOR TODAY

5330 NF WILL ACT AS LAST HOPE SUPPORT OF BULLS....ON BOUNCE...5380 NF FIRST HURDLE OF BULLS

ONLY BREAKING THIS RANGE WILL SET FURTHER MOVES FROM BULLS OR BEARS....WATCH

Market Update:

LITTLE HIGHER MARKET IN LINE WITH REST OF ASIAN MARKETS .....NOW FOR TODAY

5400 NF WILL ACT AS FIRST HURDLE OF BULLS...ON FALLS...5340 NF LAST HOPE SUPPORT OF BULLS

ONLY BREAKING THIS RANGE WILL SET FURTHER MOVES FROM BULLS OR BEARS....WATCH

Market Update on 6th Sept

FLAT MARKET IN LINE WITH REST OF WORLD...AS ALL EYES ARE ON ECB MEET TONIGHT AROUND 10 PM WHERE DRAGHI WILL SPEAK ABOUT THE BOND BUYING PROG. OF EUROPE......NOW FOR TODAY

5220 NF WILL ACT AS LAST HOPE SUPPORT OF MARKET....WHILE ON BOUNCE 5280 NF ...FIRST HURDLE OF BULLS

ONLY BREAKING THIS RANGE WILL SET FURTHER MOVES FROM BULLS OR BEARS....WATCH

Market Update on 5 sept

WEAK MARKET IN LINE WITH REST OF ASIAN MARKETS.......NOW FOR TODAY

5250 NF WILL ACT AS LAST HOPE SUPPORT OF BULLS...ON BOUNCE 5300 NF FIRST HURDLE OF BULLS

ALMOST SAME RANGE WHICH WE GAVE YOU YESTERDAY AND FULL DAY NEITHER BULLS NOR BEARS WERE ABLE TO BREAK IT ..SO UNLESS ANYONE OF THEM BREAKS IT...NO FURTHER MOVES ....WATCH

FII'S TODAY BOUGHT NET 304 CR NET IN CASH WHILE DII'S SOLD NET 105 CR IN CASH
FII'S IN F&O SOLD NET 318 CR IN INDEX FUTURES AND SOLD NET 406 CR IN STOCKS FUTURES

SO TODAY WAS THE DAY WHEN THOUGH FII'S LEND SOME SUPPORT IN CASH TO MARKET REASON WHY INDEX RECOVERED FROM LOWS OF 5258 NF WHEN WE GAVE YOU IN THE MORNING SUPPORT OF 5250 NF...AND IT DID HIGH OF 5304 NF BEFORE CLOSING AT 5302 NF.
NOW MOVING ONWARDS THOUGH LOT WILL DEPEND UPON GLOBAL CUES BUT FUNDS SUPPORT IS NEEDED TO KEEP THE MOMENTUM OF MARKET GOING CAUSE EVEN TODAY IF FII'S BOUGHT 304 CR IN CASH THEY SOLD 318 CR IN INDEX FUTURES AND 406 CR IN STOCKS FUTURES SO CLEAR THEY DO NOT POST MUCH BULLISH PICTURE...UNLESS IT IMPROVES TOO MUCH UPSIDE OF MARKET ON ANY RECOVERY IS CAPPED....WATCH

Market Update on 4th sept

LOWER MARKET ON EXPECTED LINES...AS US MARKET WAS CLOSED AND ASIA LITTLE WEAK...AND EFFECT OF SELLING FROM FII'S DII'S OF YESTERDAY......NOW FOR TODAY

5250 NF WILL ACT AS LAST HOPE SUPPORT OF BULLS...ON BOUNCE...5310 NF BULLS HURDLE

ONLY BREAKING THIS RANGE WILL SET FURTHER MOVES FROM BULLS OR BEARS...WATCH

WEEKLY MARKET UPDATE AS ON MONDAY 03 rd SEPTEMBER 2012

NIFTY SPOT - (5258.5)

In our last weekly we had maintained a bullish stance with a stop loss of 5258.5 on a weekly closing basis. Contrary to our view, marke t traded with a negative bias throughout the week, but the bulls managed to close the week above our crucial level of 5258 and  salvage some pride. Even though the markets have closed above 5258, it now appears that the bulls have won the battle but have  lost the war !!! In the current week NIFTY has support @ 5194 - 5130 - 5030, while resistance can be aniticipated at 5322 - 5369 - 5386. We  will have a bullish outlook, only if the NIFTY closes above 5417 and will have a bearish outlook if the NIFTY closes below 5258.  If the NIFTY trades between 5417 - 5258, we should still have a bearish stance and use a sell on rallies strategies and look for  a bearish close below 5258 for further bearishness. Ideally in the current week NIFTY can post a small rally in the first 2 trading days to levels of 5293 - 5327. After this rally if the NIFTY breaks below 5238 then the NIFTY can fall down further to 5193 - 5130. A NIFTY weekly close below 5193 on or before 15th september  can take it to levels of 5130 - 5001 - 4873 by the end of september.

POSTIONAL TRADING CALLS 1. Sell REC @ 185-190. Stop loss 203. Time & price Target 160 on or before 5th / 25th september.