Make the most out of tax benefit offered under Section 80D for health insurance policy. Read on to know more about it.
The amount that you pay towards buying health insurance policy gets you tax concessions under Section 80D of the Income Tax Act 1961. The entire purpose of doing so is to motivate the citizens to the get health insurance coverage.
Section 80D and Benefits You Get
You pay a premium for health policies, be it for your family, yourself or your spouse. Under the Section 80D of Income Tax, the amount of premium gets exempted. Other things for which you get an exemption are:
- Non-cash payment for your medical/health insurance.
- You get Tax Benefits of Health Insurance as an individual taxpayer. This pertains to central government health schemes too.
- Individual taxpayers get tax benefits on preventive health check-ups.
- Costs incurred for the senior citizens’ health up
- Buying policy for other family members of the family or paying for their medical expenses
Are There Restrictions on Amount of Deduction?
As per Section 80D, you can get exemption up to the limits mentioned below-
|Condition||Family members (excluding parents)||Total benefit for all Family members (including parents)|
|None of the members is 60 years of above||Rs. 25,000||Rs. 50,000|
|If parents are above 60 years but family members are not||Rs. 25,000||Rs. 55,000|
|If parents and age of some member of the family are above 60 years||Rs. 30,000||Rs. 60,000|
Other Benefits of Buying Health Insurance
Apart from these tax benefits, a health policy provides customized benefits for an individual with different needs.
It offers financial protection to a person for treatment of medical conditions, diseases, and accidents. For someone looking for a base cover.
To provide additional cover at a lower premium, it offers super top-up plans.
It offers an option to go cashless and or reimburse the hospitalization expenses along with the flexibility to cover entire family in one plan.
The benefit plans of health insurance offer payout in case of diagnosis of critical illness.
All the different of plans have one thing in common which is the tax benefit. Being aware of these can help you claim lower taxes, which can, in turn, help you to save more when you file your returns!