Lesser-known Facts of Tax Benefits on Health Insurance Premiums
Tax Benefits on Premiums Paid for Health Insurance: Compromising on your health insurance coverage is never an option. If you have issues in paying for a comprehensive health insurance plan, then you must look out for ways to reduce your financial burden instead of saying ‘no’ to a health plan.
The government of India is also encouraging people to buy a health insurance plan with adequate cover. For this, the government is adopting various ways to promote health insurance products. Though it doesn’t pay health insurance premiums on your behalf, it does its bit by providing you with tax benefits on health insurance premiums under Section 80D of the Income Tax Act.
Let’s discuss how much you can save against your health insurance.
Tax benefits when parents are aged below 60 years
You are allowed to claim for deduction of up to Rs. 25,000 when no one in your family is aged more than 60 years.
Tax benefits when either parent is aged above 60 years
As per the Finance Act, 2018, premiums paid for health insurance plans by senior citizens are eligible for higher deductions. So, in the case where either parent is aged more than 60 years, then he/she can make a claim for deductions for up to Rs. 50,000. Also, health insurance premiums paid for a family including Self, Spouse and Children are allowed for the deduction of Rs. 25,000. Which means a total of 75,000 can be claimed in one year.
Tax benefits when the eldest member is aged above 60 years
When one member of the family is aged more than 60 years, be itself or spouse, then the claim can be made of up to Rs. 50,000 for deductions in taxes. Moreover, if your parents are aged more than 60 years, then you can get tax benefits of up to Rs. 50,000. This means a total of Rs. 1 Lakh can be claimed in a year.
The receipt of payment of health insurance premium is required which will have the name of family members, their age, and relation specified for reference. The health insurance company where you buy your policy will issue the tax certificate.
Things to Remember
- Just like Section 80D, Section 80C also gives you tax benefits. But the upper limit in 80C is comparatively higher.
- The senior citizens can also spend the amount available for tax deductions in medical expenses.
- Health insurance premiums paid in one go are eligible for tax benefits for the number of years the plan has been purchased for.
Thus, health insurance not just takes care of your health, but also your finance. If you have queries related to tax benefits on health insurance, then give a call to Insurancedekho’s toll-free number i.e. 1800 1205 698. Call now! We are ready to help you