Income-Tax And Tax Benefits From Life Insurance

A] Income-Tax Rates For Assessment Year 2011-2012 (Financial Year 2010-2011)

Income Slabs			Tax Rates
Individual & HUF below age of 65 years	Woman below age of 65 years	Individual above age of 65 years
Income upto Rs.1,60,000	Income upto Rs.1,90,000	Income upto Rs.2,40,000	NIL
Rs.1,60,001 to Rs.5,00,000	Rs.1,90,001 to Rs.5,00,000	Rs.2,40,001 to Rs.5,00,000	10%
Rs.5,00,001  to  Rs.8,00,000	Rs.5,00,001  to  Rs.8,00,000	Rs.5,00,001  to  Rs.8,00,000	20%
Above Rs.8,00,001	Above Rs.8,00,001	Above Rs.8,00,001	30%

Education Cess : An additional surcharge called as ‘Education Cess’ is levied at the rate of 2% on the amount of Income tax and   surcharge (if any) in all cases shall be levied.
Secondary and Higher: An additional surcharge, called the "Secondary and Higher Education Cess on income- at the rate of 1% of income-tax and surcharge (not including the “Education Cess on Income-tax”) in all cases shall be levied.

B] Some Important Income Tax Benefits Available Under Various Plans Of Life Insurance Are Highlighted Below:

1) Deduction allowable from Income for payment of Life Insurance Premium (Sec. 80C).

(a) Life Insurance premia paid in order to effect or to keep in force an insurance on the life of the assessee or on the life of the spouse or any child of assessee & in the case of HUF, premium paid on the life of any member thereof, deduction allowed upto 20% of capital sum assured during any financial year.

(b) Contribution to deferred annuity Plans in order to effect or to keep in force a contract for deferred annuity, on his own life or the life of his spouse or any child of such individual, provided such contract does not contain a provision to exercise an option by the insured to receive a cash payment in lieu of the payment of annuity is eligible for deduction.

(c) Contribution to Pension/Annuity Plans - New Jeevan Dhara-I & Jeevan Akshaya - VI

2) Jeevan Nidhi Plan & New Jeevan Suraksha - I Plan (U/s. 80CCC)

A deduction to an individual for any amount paid or deposited by him from his taxable income in the above annuity plans for receiving pension (from the fund set up by the Corporation under the Pension Scheme) is allowed.

NOTE: The premium can be paid upto Rs.1,00,000/- to avail deduction u/s.80C, 80CCC & 80CCD (80CCD- Deduction in respect of contribution to pension scheme of Central Government.).  However, there is no sectoral cap i.e. the limit of Rs.1,00,000/- can be exhausted by paying premium under any of the said sections.

3)  Investment under long-term infrastructure bonds notified by the Central Government. (Sec. 80CCF)

A deduction up to Rs. 20000/- is available to individuals and HUF for amount paid or deposited as subscription to long-term infrastructure bonds notified by the Central Government. This is in addition to Rs.1 lakh deduction available under section 80C.

4) Deduction under section 80D

1.      Deduction allowable upto Rs.15,000/-  if an amount is paid to  keep in force an insurance on health of assessee or his family (i.e. Spouse & children)

2.      Additional deduction upto Rs.15,000/- if an amount is paid to keep in force an insurance on health of parents

3.      In case of HUF, deduction allowable upto Rs.15,000/- if an amount is paid to  keep in force an insurance on health of any member of that HUF

Note: If the sum specified in (a) or  (b) or (c) is paid to effect or keep in force an insurance on the health of any person specified therein who is a senior citizen, then the deduction available will be upto Rs.20,000/-, provided  that such insurance is in accordance with the scheme framed by
a) the General Insurance Corporation of India as approved by the Central Government in this behalf or;
b) Any other insurer and approved by the Insurance Regulatory and Development Authority.

5)  Jeevan Aadhar Plan (Sec.80DD) :

Deduction from total income upto Rs.50000/- allowable on amount deposited with LIC under Jeevan Aadhar Plan for maintenance of an handicapped dependent  (Rs.1,00,000/- where handicapped dependent is suffering from severe disability)

6) Exemption in respect of commutation of pension under Jeevan Suraksha &  Jeevan Nidhi Plans:

Under Section 10(10A) (iii) of the Income-tax Act, any payment received by way of commutations of pension out of the Jeevan Suraksha  & Jeevan Nidhi Annuity plans is exempt from tax under clause (23AAB).

7) Income tax exemption on Maturity/Death Claims proceeds under Section 10(10D)

Under the provisions of section 10(10D) of the Income-tax Act, 1961, Maturity/Death claims proceeds of life insurance policy, including the sum allocated by way of bonus on such policy (other than amount to be refunded under Jeevan Aadhar Insurance Plan in case of handicapped dependent predeceases the individual or amount received under a Keyman Insurance Plan) is exempted from income-tax.  However any sum (not including the premium paid by the assessee) received under an insurance policy issued on or after the 1st day of April, 2003 in respect of which the premium payable for any of the years during the term of the policy exceeds 20% of the actual capital sum assured will no longer be exempted under this section.

108 Services

1-0-8 Emergency Response Service is a 24 x 7 emergency service for medical, police and fire emergencies. The service is available for the entire state of Andhra Pradesh, Gujarat, Uttarakhand, Goa, Tamilnadu, Karnataka, Assam, Meghalaya, Madhya Pradesh and Himachal Pradesh.

The main highlights are

·        It is a 24x7 emergency service.

·        Toll free number accessible from landline or mobile.

·        Emergency help will reach you in an average of 18 minutes.

1-0-8 is dialed for the purposes mentioned below:

·        To save a life.

·        To report a crime in progress.

·        To report a fire.

108 Emergency Response Services has also signed MOU with over 6800 hospitals which provide initial stabilization free of cost for the first 24 hours.

  

Types of Emergencies  

Medical Emergencies:                 

·        Serious Injuries              

·        Cardiac arrests               

·        Stroke                           

·        Respiratory            

·        Diabetics                

·        Maternal/Neonatal/Pediatric                  

·        Epilepsy                 

·        Unconsciousness              

·        Animal bites                     

·        High Fever              

·        Infections           

 Police Emergencies:  

·        Robbery / Theft / Burglary       

·        Street Fights

·        Property Conflicts

·        Self - inflicted injuries / Attempted suicides    

·        Theft

·        Fighting

·        Public Nuisance

·        Missing

·        Kidnappings

·        Traffic Problems (Traffic Jams or Rallies, raasta rokos etc)

·        Forceful actions, riots etc         

 Fire Emergencies:

·        Burns

·        Fire breakouts

·        Industrial fire hazards

 Do not call 1-0-8 if there is no ‘serious people emergency’. It is not a number for enquiry or information gathering. Do not play around by dialing 1-0-8 as a joke. Otherwise a call in real emergency could be blocked and a life will be lost. If you happen to call 1-0-8 by accident then do not hang up until the officer asks you to do so. 

What is Chit Fund?

A Chit fund is a kind of savings scheme.

"Chit" means a transaction, by which the foreman enters into an agreement with a number of subscribers that every one of them shall subscribe a certain sum for a certain period and each subscriber in his turn as determined by lot or by auction, shall be entitled to a prized amount.

Example:

40 subscribers agree to subscribe an amount of Rs.2,500/- for 40 months i.e. for a total chit value of Rs.1,00,000/-, each subscriber will get his chit amount in his turn as determined by draw of lot or by auction. The duration also equals the number of subscribers, as there must be (not more or less) one subscriber to receive the price money every month. During auction all non-prized subscribers bid by allowing percentage of subscription to be forgone. The highest bidder i.e. who allows maximum percentage to subscribers is given the chit amount. The amount, foregone by the subscriber is distributed as dividend amongst all the subscribers in every draw, after deducting 5% commission/remuneration to be paid to the foreman of the company. Maximum bid is normally between 20% and 40% and the duration of chit is normally between 12 months and 50 months. In case there are more than one highest bidder in an auction, then draw of lots is made and chit amount given to the successful subscriber. Thus each member gets an opportunity to receive the prize amount once during the tenure of the scheme. All members contribute towards the periodic subscription till the end of the duration of the chit scheme.

These 40 subscribers constitute a ‘Chit Group’ and the Chit fund company can run many such groups. For each group approval of bye-laws and commencement certificate from the office of the Registrar, Chit Funds, is a must. The share of a subscriber in a chit is also known as ticket.

‘Foreman’ means a person who under the chit agreement is responsible for the conduct of the chit and includes any other person discharging the duties of the Foreman. Besides being an organizer, he is also a subscriber in every chit group. He is also entitled to obtain one chit amount into the chit group without deduction of the amount. This is to run the scheme smooth under all circumstances.

Induction Cooking and Induction Cooker

Induction Cooking:

Induction cooking is one of the safest and most efficient cooking methods. Induction cooker works on the basis of an electromagnet which creates a powerful, high-frequency electromagnetic field. When cookware consisting of magnetic material such as iron, steel, cast-iron, enamel coated steel is placed on the induction cooker, the electromagnetic field transfers energy to the bottom of the induction compatible cookware, which causes the cookware and the food inside it to become hot. The amount of heat generated in the cookware depends upon the varying strength of the electromagnetic field produced. When the strength of the electromagnetic field is changed, the temperature of the cookware changes instantly.

Induction Cooker:

Induction cooker is a cooking appliance that uses the method of induction heating to cook your food. It is completely different from your convention stove as induction cooker does away the use of gas and instead uses electricity to do the cooking. A ferromagnetic or ferromagnetic coated pot is placed above an induction coil for the heating process to take place.

Energy Efficiency:

Heat is generated in the pot directly and then to the food.

With lesser heat being loss unnecessary to the surroundings, your kitchen remains cooler.

Safety:

This has a cool stove top. The stove top hardly gets warm and is gentle to your hand even if you touch the stove top with your bare hand. Not only does an induction cooker save energy and money, the absence of an open flame keeps the kitchen safer from any unnecessary fire hazards. An induction cooker combines the simplicity and rapid heating quality of electric stoves with responsive temperature control. Unlike conventional cooktops that make use of a gas element or a heating coil, the induction type cookers utilize magnetic energy for cooking. Induction cookers make use of induction heating to generate heat directly in the cookware without any need of warming the burner.

A useful tip:

·       Do not use high heat setting on Induction cooker when not monitoring the utensil.

·       Use low to medium settings to heat oil slowly.

·       Use high heat settings on Induction cooker only when it is necessary.

Teeth whitening at home

Dental bleaching

·        Apply a paste of lemon juice and salt in the yellowish tint of the teeth.

·        Rub the inner white part of an orange peel in the bleached teeth to obtain lovely white shine.

·        Brush regularly with paste of bi-carbonate of soda in water.

·        Mix a pinch of baking soda with half table spoon of vinegar and a pinch of salt. Use this and brush your teeth. Thoroughly rinse your mouth well with water.

·        Cut strawberry into two pieces and rub it on your teeth.

·        Rub hydrogen peroxide on your teeth and leave for 3 minutes. Thoroughly clean your mouth.

·        Reduce intake of sugar.

·        Avoid too much coffee or tea.

·        Avoid smoking.

·        Fruits and vegetables with dark juices, such as beets, blackberries and blueberries can stain dental enamel. Brush your teeth as soon as you are finished eating.

Home remedies for Asthma

Home treatment for Asthma

The juice of one lemon, diluted in a glass of water and taken with meals, will bring good results.

Take five grams of gooseberry mixed with one tablespoon of honey every morning.

Boil a handful of drumstick leaves in 200 ml of water for five minutes. Add a little salt, pepper, and lime juice. Take this soup once daily.

A teaspoon of fresh ginger juice, mixed with a cup of fenugreek decoction and honey to taste, acts as a brilliant expectorant in cases of asthma. The decoction of fenugreek can be made by addition of one tablespoon of fenugreek seeds in a cupful of water. This remedy must be taken once in the morning and once in the evening.

Ten garlic cloves (lasuna or Allium sativum), boiled in 30 ml of milk, create an excellent medicine for the early stages of asthma. This mixture must he taken once each day by the patient. Steaming ginger tea with two minced garlic cloves in it, can also help to keep the trouble under control, and must be taken in the morning and evening.

Mix 1 tablespoon of honey and ½ tsp cinnamon powder and consume. This is an excellent home remedy for asthma.

In one cup of water soak one tablespoon of Fenugreek seeds overnight. Strain and add 1 tablespoon of Ginger juice and 1 tsp of honey to this. It has to be consumed twice daily.

Add a tsp of honey in a glass of hot water and have it in small sips before going to bed.

Boil eight to ten cloves of garlic and ginger in ½ cup of milk and consume it during night time.

Mustard Oil – It is considered as one of the most recommended asthma home remedy when a person is having an attack. It is performed by mixing some mustard oil with a little camphor and then massaging it over the chest of the person affected. With this the sufferer gets relief as it eases the breath intake and also makes respiratory passage clean.

Hold a pot or jug of honey under the nose and breath-in (inhale). The difficult respiration becomes easy and deep.

Eating fig fruit will drain the phlegm off.

Start taking lemon added food.

Take a teaspoon of Indian gooseberry powder. Mix with one tablespoon of honey. Take this every morning.

Take a teaspoon of bitter gourd root paste. Mix with a teaspoon of honey. Take this at night.

Take a teaspoon of bitter gourd root paste. Mix with a teaspoon of the juice of holy basil leaves. Take this at night

Take the soup prepared using drumstick leaves, and added with some pepper, lime juice and salt.

Drinking ginger tea prepared by adding garlic twice daily (once in the morning and once in the evening) will keep asthma under control.

Avoid taking yogurt (curd), alcohol, and pickles.

Take regular exercise (workout).