ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Under Section 80D, you are allowed to claim a tax deduction of up to Rs 25, 000 per financial year on medical insurance premiums. This limit applies to the premium paid towards health insurance purchased for you, your spouse, and your dependent children.

Detailed explanation-2: -Deductions from Gross Salary For example, you will have to deduct HRA exemption, any home loan EMI, investments under sections 80C and 80D, and similar such things for the calculation of taxable income. This taxation process is different for self-employed and salaried individuals.

Detailed explanation-3: -For a person aged below 60 years, the limit for deduction under Section 80D is upto ‘25, 000. The limit of ‘25, 000 includes ‘5, 000 on preventive health checkup. If the age of the insured is above 60 years, the limit for deduction increases upto ‘50, 000.

Detailed explanation-4: -Who Is Eligible to Claim Deduction Under Section 10 of the Income Tax Act? Usually, people below the age of 60 are eligible to get a basic tax exemption limit of ₹ 2.50 Lakhs. For senior citizens, the exemption limit is up to ₹ 3 Lakhs.

Detailed explanation-5: -A deduction from the income subject to tax under head salaries is offered under Section 16. It provides deduction for professional taxes, entertainment expenses, and the standard deduction.