ATK
New Delhi [India], May 17: One of the greatest investments in life is always ensuring the good health of yourself and your family. Hence, if you intend to keep yourself financially secure regarding any health emergencies or issues, it is wise to opt for a health insurance policy. Health insurance is ideal for having access to financial assistance for quality treatment.
Along with that, what better way to save some of your taxes than getting such an insurance policy? With health insurance, the Income Tax Act of India 1961 allows you to get tax benefits under Section 80D.
So, if you want to know more about it, keep reading about the details of Section 80D in medical insurance.
What is Section 80D of the Income Tax Act?
Every individual or HUF (Hindu Undivided Family) who has opted for a medical insurance policy is eligible to claim a deduction from the monthly premiums they pay under Section 80D. The Government of India offers tax deductions in medical insurance of up to Rs. 25,000 in one financial year.
This tax deduction limit can even increase to Rs. 50,000 in a financial year for insured members who are above 60 years of age. As a policyholder, you can also claim this deduction on healthcare policy for yourself, dependent children, dependent parents and spouse.
Under section 80D of the Income Tax Act, the deduction claim can also be made by NRIs (Non-Resident of India) who pay tax in India. However, it does not apply to any other entities like firms or organisations.
What are the Benefits of Section 80D in Medical Insurance?
Given below are some of the major benefits that Section 80D serves in terms of having a health insurance plan:
* Tax Deductions
Section 80D of the Income Tax Act allows you to claim a deduction on the monthly premium amounts that you need to pay for a health insurance policy, for dependent family members. Beneficiaries below 60 years of age would get a maximum deduction of Rs. 25,000 while this deduction would be of Rs. 50,000 maximum for individuals above 60 years of age.
* Coverage for Preventive Health Checkups
The deduction under section 80D is also applicable for the amount of expenses you need to bear for availing preventive health checkups. Such annual health checkups are essential to ensure the good health of your family and to detect any health issues to be able to cure them on time. It is beneficial in avoiding any potential issues at the earliest.
* Additional Deductions
With time when your parents start to age, they become more prone to diseases and injuries. Hence, it is essential to have them covered in your health insurance policy to ensure they are provided with prompt medical attention. Under section 80D, you can also claim a deduction on the insurance premiums that you pay for your parents.
What are the Exclusions that Come Under Section 80D?
Along with the benefits, you also need to be aware of the points that are not covered under section 80D, which includes the following:
* The premiums have been paid in cash.
* Any payment that has been made on behalf of any relatives like grandparents, siblings, working children etc.
* Any payment that has been made by the employer of the policyholder of the health insurance plan.
Please note that the points mentioned above are general ones and can vary as per the rules mandated by the Indian Government. Therefore, it is always advisable to cautiously go through the terms and conditions of the health insurance policy you intend to opt for.
The Bottom Line
To conclude, with the inclusion of section 80D of the Income Tax Act, availing quality medical treatment has become more convenient for policyholders, especially for taxpayers. Hence, understanding the benefits of this section can help you maximise your total tax savings, along with getting optimal healthcare facilities. Make sure to research the same in detail before you get into the world of medical insurance.
To make the most from your health insurance plan, consider getting one from ACKO with attractive premiums and benefits.
(ADVERTORIAL DISCLAIMER: The above press release has been provided by ATK. ANI will not be responsible in any way for the content of the same)