Tax Benefits of up to ₹25,000 with Digit Health Insurance
Health Insurance 80D Tax Benefits - Save upto 31200 Annually
Imagine! You get two benefits with just one easy step; how wonderful, right? Such is the thing with having a health insurance plan; you get both financial security in medical circumstances, along with tax benefits! The Health insurance premium paid offers tax benefits under Section 80D of the Income Tax Act.
How much Tax Benefit can I get on Health Insurance?
The Health insurance premium offers tax benefits under Section 80D of the Income Tax Act.
Scenario |
Deduction under 80D |
| Self and Family (All members below 60 years) | ₹25,000 |
| For Self and Family + Parents (All members below 60 years) | ₹25,000 + ₹25,000) = ₹50,000 |
| For Self and Family (all members below 60 years) + Senior Citizen Parents | ₹25,000 + ₹50,000 = ₹75,000 |
| For Self and Family (with eldest member above 60 years) + Senior Citizen Parents | ₹50,000 + ₹50,000) = ₹1,00,000 |
The maximum that one can save under Section 80D (Rs 25,000) for those paying 5.20 percent, 20.8 percent and 31.2 percent tax is Rs. 1,300, Rs 5,200, and Rs 7,800 respectively. This will be over and above anything you can save under Section 80C of the Income Tax Act.
Health insurance Tax Benefit for Senior Citizens
Health insurance premiums for senior citizens are always on the higher side. Insurance companies may also be disinclined towards providing medical insurance for those who are old or suffer from pre-existing ailments.
However, Budget 2018 came with some relief for senior citizens who have high medical expenses and are unable to buy health insurance policy due to pre-existing ailments or can’t afford to pay high premiums.
The Budget has amended Section 80D which allows a deduction for medical expenses incurred on senior citizens. This deduction can be claimed by the senior citizen himself/herself or by his/her children if the children are incurring medical expenses for their senior citizen parents.
Know more about
- Income tax benefits for Senior Citizens
- Coronavirus Health Insurance
What documents do I require to claim the deduction?
The only documents required to claim the deduction is your premium payment receipt and your insurance policy copy which shows the name of the family members and their relation and age. In case of premium paid for parents policy, the proposer should ask for 80D certificate from the insurance company by providing the payment details in his name.
Important Points to Remember:
- Go through tax exemptions in your policy carefully.
- Avoid payment of premium in cash.
- The maximum deduction under section 80D can be Rs 1,00,000 in case you buy Health insurance for yourself or your parents and both you and your parents are senior citizens.
- HUFs (Hindu Undivided Family) can also claim this deduction for premium paid for insuring the health of any member of the HUF
- To avail deduction, the premium should be paid in any mode other than cash. However, the payment for Preventive Health check-ups can be done in cash.
- Benefits under Section 80D are in addition to Section 80C tax breaks of up to Rs 1.5 lakh.
- The amount available for senior citizens’ deduction can also be spent on medical expenses.
- A Health insurance premium paid at one go allows tax benefits for the number of years of insurance cover.
Health Insurance other than safeguarding your pocket from medical expenses, you can avail tax benefits on the premiums paid towards your health insurance under Section 80D of the Income Tax Act. This makes a health insurance policy a beneficial tax-planning tool which is definitely a wise investment to make for your future.
