Page 42 - Banking Finance July 2023

ARTICLE

best medical treatment facilities to the family without Without disability coverage as part of the financial planning,
worrying about the expenses. Now-a-days health insurance the savings accumulated for the purpose of child education
policies are available with life time renewability option - and retirement, get depleted. The disabled person who was
means you can renew your policy till you are alive. once the breadwinner becomes the dependent.

This also saves the person from depleting his own savings in Life insurance companies are providing different riders to
case of sudden sickness of himself or of any of his family take care of this risk of disability like the income benefit rider
members. The premium paid under a health insurance policy due to accidental disability etc.
is eligible for tax benefit under Section 80D of the Income
Tax Act up to a maximum amount of Rs. 25,000. The fourth D is dependence: Another risk associated with
life is Dependence post retirement .one should retire at
If parents of more than 70 years old, an additional tax
some point of time in the life irrespective of his occupation
benefit of RS. 50,000/- is available.
viz., salaried or business owner. Once the regular monthly
income stops, the real struggle starts to lead a better post-
Thus, a health insurance plan helps you save on medical
retirement life…no clue of for how many years!
expenses and reduces annual tax outgo.
U/S 80 D Retirement planning is an important stage of financial
planning that involves finding out the current income sources
Mediclaim for self and family =
and future expenditure to enable to build a decent
25000X30%=7500X104% = 7800/-
retirement corpus for the retired life. For this one needs to
Mediclaim for parents (senior) =
learn to live on a fixed budget during his earning years to
50000X30%=15000X104% = 15600/-U/S 24(b)
enable to invest in a decent retirement plan. Retirement
Interest on housing loan =
planning is a long-term process that should start when you
2,00,000X30%=60000X104% = 62400/-
are young. This avoids a state of one becoming a liability to
his children when he becomes old.
These amounts saved from paying income tax can be
invested for future financial needs like children education/
The investment mantra for every salaried person is "save
marriage/ business capital or for buying own house/flat or
something”, Whatever you can, In a systematic way every
for retirement planning.
month over a period of 15 to 20 years. Be disciplined in not
The third D is disability insurance - Disability due to accident stopping this savings. Think twice before buying unwanted
or disease may prevent a person from working - business or things by getting attracted to the on-line sale melas. If one
job - and stops his income. follows this Investment mantra then no Fund manager in
the world can match with this strategy in creating a huge
Disability insurance replaces lost income when an individual corpus for one's medium- and long-term future financial
is unable to work because of an accident or illness. needs.

CBDT extends deadline for re-registration by charitable, religious
trusts to Sept 30

The Income Tax department has extended the deadline for charitable and religious trusts to furnish applications for
re-registration and approval to September 30. The income tax department said, "The due date for furnishing the
application by the charitable or religious trusts and institutions for reregistration/approval has been extended from
25.11.2022 to 30.09.2023."
"The due date for furnishing application for regular registration/approval by provisionally registered/approved trusts
or institutions has also been extended from 30.09.2022 to 30.09.2023 for registration under section 10(23C) and
12AB of the Income-tax Act, 1961," it added.

BANKING FINANCE | JULY | 2023 | 39