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How is bonus taxed -- separately at 30% or added to the overall salary?
- Vempati, Ramprasad
Bonus is part of the salary. Hence, it is taxed at the tax slab rate applicable to your overall salary.
I am paying the insurance premium for a life insurance policy for my parents, children and wife. Can I claim the tax benefit of the premium paid for all of them?
- Vinit Waghani
The tax benefit is available on the premium paid for yourself, your spouse and children. You cannot claim the tax benefit on the premium paid for your parents even if they are dependent on you.
I am entitled to a medical reimbursement of Rs 15,000. If I submit the bills for Rs 10,000, how much of tax do I have to pay on the balance amount of Rs 5,000?
- Gnana Prakash
The excess amount of Rs 5,000 for which you would not be producing medical bills would be included in your salary income and taxed at the applicable tax rate.
I have an elder, dependant brother whose IQ is very low and has been declared as mentally retarded by relevant doctors at Ram Manohar Hospital, Delhi.
Till last year I was getting a deduction of Rs 75,000 from my income.
This year my employer has said the rule has changed and I need to furnish medical bills to claim this deduction. Is that so? Does that mean I can no longer get a deduction?
- Sanjay Aneja
The deduction is available if you incur expenditure (no amount specified) for the medical treatment (nursing, training, rehabilitation) of the dependent who has been declared as a person with a disability.
Form 10-IA must be submitted along with the return of income to claim the deduction.
Accordingly, if you have spent something on medical treatment, you would be eligible for a flat deduction regardless of the amount spent on medical treatment.
You will be able to get a deduction if you take out a specific insurance policy.
This means you should pay a premium for any scheme framed by an insurance company for a policy specifically for the maintenance of a disabled dependent. In case the person who is taking care of the handicapped dependent dies, the amount in the scheme would be used to take care of the dependent.
To see the other queries answered by our tax expert, read Of tuition fees and service tax
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