I am a senior citizen and have taken a travel insurance for going abroad from ICICI Lombard to cover health . Can I get tax exemption on this.

Ans: Premium on insurance policies attracts 18 per cent GST. Premium paid on new life insurance policies (issued between October 12, 2020 and March 31, 2021) is allowed as eligible services under the LTC Scheme.

Please note that GST is not charged on the entire premium (GST is charged on 10%of premium for single-premium policies, amounting to 1.8% GST on the entire premium). In this case even though premium attracts 18% GST, the effective claim of GST is only 1.8%.

It was clarified that policies purchased between 12.10.2020 to 31.03.2021 are eligible under the LTC Scheme. So as per this clarification, you can claim this insurance policy for deduction under LTC.

Ans: Changes proposed in new tax regime in Budget 2023 is available for senior citizens also but no separate changes proposed for senior citizens.

Ans: Yes, as a senior citizen, you can claim tax exemption from both the premium paid for medical insurance under section 80D (up to Rs 50,000) and medical expenses incurred for self under section 80DDB (up to Rs 50,000) cumulatively. However, you need to ensure that you have valid bills and receipts for the medical expenses incurred, and the treatment for which you are claiming the deduction falls within the specified diseases/ailments mentioned in section 80DDB.

Ans: Income upto 3 Lacs is exempt under both regimes for senior citizens in the the 60 to 80 age group for the FY 2023-24.

Ans: Grandfathering clauses are typically used for policy changes, where existing situations are exempt from the new rules.

However, there have been instances of grandfathering clauses related to capital gains tax in India. For example, the introduction of Long-Term Capital Gains (LTCG) tax on stock market investments in the 2018 budget included a grandfathering clause. This clause protected investors who had purchased shares before a specific date (January 31, 2018) from the new LTCG tax on any gains made on those shares.

It's possible there might be grandfathering clauses related to other tax exemptions, but they would be specific situations or older tax regimes.

Here's what you can do to discuss tax exemptions with your financial advisor:

Explain your situation: Briefly tell your advisor you're interested in exploring tax exemptions that might apply to your specific financial situation.
Bring relevant documents: If you have any investment documents or details related to potential tax exemptions, take them along for discussion.
Ask about current tax benefits: Inquire about any current tax benefits you might be eligible for based on your income, investments, or life stage.
Discuss tax planning strategies: Explore different strategies your advisor might recommend to minimize your tax burden and maximize your after-tax income.
By consulting your financial advisor, you can gain personalized guidance on tax exemptions and optimize your financial plan.