Under Section 80D Health Insurance Tax Benefit. Although people in their 20s and 30s now understand the importance of health insurance, many of them remain ignorant about it. They believe that health insurance is for the elderly and that it is an unnecessary investment.
But young people as young as 20 are now suffering from serious health problems like cholesterol and diabetes. It is therefore important that one should consider buying health insurance as soon as possible. To further encourage people, there are income tax exemptions for medical insurance premiums under Section 80D of the IT Act.
Under Section 80D Health Insurance Tax Benefit. Although the primary reason to buy a health insurance policy should always be to protect your health, tax exemption is an excellent additional benefit. Before claiming tax benefits on health insurance premiums, you need to clarify the following: Invest in the right health insurance policy and save tax
1. Who can claim a tax deduction on health insurance?
2. What is the maximum tax deduction limit?
3. How can this cut be claimed?
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Who is
entitled to claim a reduction in taxes on health insurance?
Under section 80D, if you are eligible for a tax deduction on premiums paid for a health insurance policy-
You are a person who has purchased health insurance for you, your wife, dependent children or your parents.
Tax exemptions are available for health insurance
Here are some discounts you can claim if you have purchased health insurance for yourself and your parents.
Age below 60 years (Proposer and Guardian)
If you are purchasing a separate health plan for yourself and your age is below 60 years, then you have to pay Rs. Can claim tax benefits. twenty-five thousand in a year on your medical premium. If you are also buying health insurance for a dependent parent under the age of 60, you will get an extra money discount. 25,000.
60 over 60 years of age (parents)
If you have purchased a separate health plan for your dependent parents over the age of 60, the discount limit will be increased to Rs. 50,000 to 25,000.
So, if you are under 60 years of age and your dependent parents are above 60 years of age and you purchase a separate policy for yourself and your parents, then you have to claim tax exemptions. 75,000. Here, Rs. 25,000 is your health insurance premium and Rs. 50,000 for the premium paid for your senior parents.
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Above 60 years (Proposer and Guardian)
If both you and your old aged above 60 Years parents are over 60 years of age, the maximum medical premium tax-deductible limit will be Rs. One Lakh lakh.
Since you are above 60 years of age, you will get a discount of Rs. 50,000 and you can get the tax benefits to your dependent parents for whom you have bought a health insurance policy.
|
Insured |
Premium
paid for health insurance - Self (Rs) |
Premium
paid for health insurance - Parents (Rs) |
Total
deduction under 80D (Rs) |
|
Self (including spouse,
children) under 60, and parents also under 60 |
25,00 |
25,000 |
50,000 |
|
Self below 60, but parents
above 60 |
25,000 |
50,000 |
75,000 |
|
Parents and individuals
both above 60 years |
50,000 |
50,000 |
1,00,000 |
How to
claim tax exemption on health insurance premium?
Tax benefits on health insurance can be claimed at the time of filing an income tax return. Given below the manners you need to follow
1. At the time of filing your income tax, there have an option as 'Deductions' column you can select '80D' to claim an exemption for health insurance premium
2. A drop-down menu will now be available so that you can select the conditions under which you are claiming the cut. There will be seven options and you can choose the one under which you are claiming the cut. The options are as follows-
⮚ yourself and family
⮚ Self (over 60 years) and family
⮚ Parents
Parents (over 60 years)
Self and family with parents
Own and family with parents over 60 years of age
Self (above 60 years) and family with parents over 60 years
You can now attach helpful evidence and documents so that the IT department can verify your cuts. Remember that deduction in medical insurance premium can be claimed only if you pay the premium through net banking, credit/debit card, a check or draft. Cash premiums are not tax-deductible. Also, you must have supporting documents and evidence to claim a successful cut.
When
can you claim a health insurance tax deduction?
Tax deductions on health insurance premiums can only be claimed for a certain financial year. For example, if you pay a premium for the fiscal year 2018/19, a tax deduction may be claimed when filing an ITR for 2018/19.
No deduction can be claimed for the premium you have already paid in the last financial year or will pay in the next financial year.
Taking advantage of tax cuts on health insurance
You are entitled to claim tax benefits in accordance with the limits and conditions discussed above.
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