All You Need To Know About Health Insurance Tax Benefits
Health is Wealth' and therefore, it's essential to care for you and your family's health. With rising costs of hospitalisation and medical treatment, having a health insurance/medical policy is essential. It not only ensures you don't go bankrupt after an illness, Shrooms Online Canada but also provides sufficient coverage. Most importantly, even if you don't have to avail it, you get health insurance tax benefits.
Investing in a medical insurance policy, saves not only money but also gives you income tax benefits.
Below are the health insurance tax benefits that you should know about. These will help you claim tax deduction under appropriate sections.
Deduction Under Section 80D of the Income Tax Act
- The Government of India (GOI) offers individual taxpayers a deduction on premiums paid under section 80D of the Income Tax Act. You can even avail benefits on premium paid to cover critical illness.
For Self and Immediate Family (Spouse and Dependent Children):
- When it comes to health insurance tax benefits, you need to remember the following. In this case, you can claim up to INR 25,000 in a financial year, including the amount for you, your spouse and dependent children.
- In case you or your spouse is a senior citizen, i.e., 60 years and above, the deduction limit goes up to INR 50,000. The deduction extends to cover any health check-up of up to INR 5,000 you may have had in that financial year.
For Parents:
- Medical insurance premiums paid for parents, or, legal guardians, is allowed for deduction up to INR 25,000 per financial year. If either of your parents is a senior citizen, then the maximum limit goes up to INR 50,000 per financial year.
- The maximum qualifiable amount is always the lower of the actual premium, or, the permissible limit under this section. This must include the medical check-up amount.
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