Tax Exemption on Health Insurance Premium for Parents

According to the norms stated under the “income from other sources”, a person is liable to pay tax on the money he receives from any individual for any fiscal, if the aggregate value exceeds Rs.50, 000. But in case of relatives, especially for blood relations like mother, the money received is not counted taxable.

In case of gift transactions, even your relative will not be liable to pay the taxes till you are not a minor assess. You need to inspect other formalities like stamp duty and documentation process in this transaction.

If you have availed any home loan for a residential property then you can even claim tax benefit in such a case. The quantum of tax rebate depends on property type i.e. self-occupied property (SOP), let out property (LOP) or deemed to be let out (DLOP).

Deduction in case of SOP is Rs. 1.5lakh per financial year and for LOP/DLOP you can claim the entire rental value/deemed rental value for deduction. If borrowed from specified lenders, you can claim for deduction under section 80C subjected to overall cap if Rs. 1lakh for any of the property type i.e. SOP/LOP/DLOP