Emergencies in medicine always catch us off-guard. When it comes to medical insurance, it is always preferable to be safe than sorry.
The vast majority of people lack health insurance. Therefore, they must rely on their savings or take out loans in case of an emergency. Medical insurance is a requirement for your investment portfolio, and the government encourages everyone to purchase it by offering Section 80D tax benefits. ** ##
What is Section 80D
Medical insurance premiums paid in any given year are deductible from total income for any person or HUF under Section 80D. Additionally, top-up health plans and critical sickness insurance are eligible for this deduction. The deduction benefit is accessible when purchasing a health insurance plan for yourself, your spouse, your dependent children, or your parent. The fact that it is in addition to the deductions claimed under Section 80C is the finest part. **
Who qualifies for a Section 80D deduction?
Only taxpayers in the Individual or HUF category are eligible for tax deductions for medical insurance premiums and senior citizen medical expenses. **
Individual or HUF taxpayers may purchase insurance for:
- Self-reliant children and a spouse
- Parents
This deduction is not allowable for any other entity. A business or firm, for instance, cannot make a deduction under this clause.
Payments that qualify for a Section 80D deduction
The following payments are eligible for deductions under Section 80D for either an individual or HUF **:
- A medical insurance premium paid in any way other than cash for the self, spouse, kids, or parents who are dependant
- Expenditures related to preventative health examinations
- Costs associated with treating a senior (60 years of age or older) who are not covered by a health insurance plan
- The payment is given to the central government’s health programme or any other programme that the government has announced
- Deduction permitted by section 80D
A financial year is granted a deduction of Rs 25,000 under Section 80D. The maximum deduction permitted for senior citizens is Rs 50,000.
Individual:
A person may deduct up to Rs 25,000 for their own insurance as well as their spouse’s and dependant children’s insurance. If your parents are older than 60, you may be eligible for an additional/separate deduction of up to Rs. 50,000. **
Suppose you incur medical costs for senior citizens (yourself, your spouse, your dependent children, or your parents) that are not covered by health insurance. In that case, you may be eligible for a deduction up to the aforementioned amount of Rs 50,000.
The maximum deduction available under this section is Rs 1,000,000 if the taxpayer and the taxpayer’s parents are older than 60 years old and have senior citizen health insurance. You may deduct the costs associated with treating older citizens (taxpayer/family and parents) if they are not covered by health insurance up to the allotted amount. Senior citizens over the age of 60 include senior and very senior citizens.
You cannot deduct the cost of medical insurance for your brother, sister, grandparents, aunts, uncles, or other family members when claiming tax advantages. Children and working adults cannot claim the premium as a tax deduction. **
Any medical claim made for one of the HUF’s members may be deducted under section 80D medical expenditure. If the covered member is under 60 years old, the deduction will be Rs 25,000; if the insured person is 60 years or more, the deduction will be Rs 50,000. Any form of premium payment other than cash is eligible for deduction. Therefore, a premium paid online or with a credit card is also eligible for a deduction. **
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
Leave a Reply