Unemployed

You can claim medical premium upto Rs. 15,000 pa u/s 80D.

You cannot claim LTA

You can cannot claim HRA, but yes you can claim rent u/s 80GG (conditions apply)

No medical reimbursement can be claimed because you do not have any employer to reimburse the medical expenses. instead you can claim 15,000 Rs. if paid towards medical premium.

HRA  cant be claimed you can claim rent deduction under section 80GG

LTA cant be claimed as well.

Yes expenses related to capital gains can be reduced before paying taxes.

If the person whom you are speaking is doing only stock market transactions then you as well show it as speculation business instead of capital gains. Here you could possibly show conveyance charges, brokerage, electricity charges, telephone charges, courier , printing and so on related to his business of trading in stocks.

Hi - I have some additional queries based on Praveen's response.

Again, please remember the person is unemployed, has no income other than interest income and equity capital gains income and lives in a rented house.

1. What does one need to do to show it as a speculation business instead of capital gains? What is the rate of tax to be paid? Is this better than paying capital gains tax?

1. Does he need to set up a corporate entity like a sole proprietorship? If yes, can he set it up at his/her place of residence?

2. Can setting up a business to engage in speculation business be justified even if he has no customers but doing it only to earn an income for self?

3.  Can the rent paid on his residence be treated as a deductible expense for computing his taxable income?

Regards

Hi - Is deduction under section 80GG (house rent paid) subject to the overall limit of Rs. 1,00,000 under Chapter VIA?

Regards