Finance Buddy

  Health insurance is a form of insurance that covers medical expenditures incurred by an individual for long-term well-being. Ultimately, health insurance allows individuals and families to cover the high expenses of medical treatment. There are tax advantages to purchasing and having health insurance coverage. The premium amount paid for health insurance is tax deductible. Section 80D of the Income Tax Act allows you to claim tax benefits on your health insurance premiums. As a result, based on an interview with various industry experts, here's how you can get tax breaks on your health insurance premiums. Sujit Bangar, Founder, Taxbuddy.com :  We all are aware about health insurance benefit for tax deductions. Where we get confused are two things.  Firstly , deduction for health insurance is different from deduction under 80C bracket. This health insurance deduction is over and above 150k limit of 80C.  Secondly, we all do regular health check up. Especially, eve...

The Central Board of Direct Taxes (CBDT) has issued a circular dated April 5, 2023, clarifying how employers will be deducting tax on salaries for the current financial year 2023-24. As per the circular issued, an employee is required to inform the income tax regime that he/she intends to choose for the purpose of TDS on salaries. Once the intimation is received by an employer, then tax on salary will be deducted accordingly. The employee can choose either the new or an old tax regime, at his convenience. If an employee does not inform the employer of the same, then it will be assumed that the employee has opted for the new regime. The TDS on salary will be deducted on the basis of the income tax rates applicable under the new tax regime. The new circular has been issued by the income tax department after changes in the Income-tax Act, 1961 were announced in the Budget 2023. One of the announcements was the new tax regime becoming the default option. Till FY 2022-23 (i.e., Mar...