Insured Health Can Save Your Tax

Dec

Insured Health Can Save Your Tax

Tagged Under : Health, Health Tax

We all know the importance of having a sound health, but it’s also the most neglected aspect when it comes to health expenses.

As our day-today life style becoming hectic, the medical expenses also rising its parameter. Surprisingly, there are very few people in the country have adequate insurance covers.

Though government tries time after time that we, citizens, protect ourselves and our loved ones with adequate medical cover by giving tax breaks on expenses incurred for getting health insured, but we rarely give importance that.

HEALTH INSURANCE

Take an example for medical insurance policy. If premium paid up to Rs 15,000; it’d be exempted from tax under section 80D of the Income Tax Act. A tax-payer paying premium toward insurance cover of dependant parents shall be entitled to an additional tax benefit of up to Rs 15,000. If the parents are senior citizens, then this limit gets enhanced to Rs 20,000.

MEDICAL EXPENSES

Any salaried employee can be eligible for taxfree medical reimbursement from their employer. The amount of reimbursement can go up to a maximum of Rs 15,000 per annum. If the tax-payer incurs expenses (up to Rs 50,000)for medical treatment of a disabled dependant, the same would be reduced from the taxable income. If the dependant suffers from severe disability, the amount of deduction would be Rs 75,000 per annum.

For the amount spent on the medical treatment of a dependant suffering from diseases like AIDS, thalassemia ctc. can also be claimed as a deduction from the taxable income. Under section 80DDB of the Income Tax Act, it can go up to a maximum of Rs 40,000. In case the dependant is a senior citizen, the amount of deduction shall get enhanced to Rs 60,000 per annum.

LIFE INSURANCE

Under the section 80C of the Income Tax Act, the insurance holder’s spouse or children would be eligible for deduction from the total taxable income up to a maximum of Rs 1 lakh per annum.

However, this deduction is applicable only when the amount of premium paid does not exceed 20% of the sum assured by the insurance policy.

Now, if you want to understand the nuances of different types of policies, feel free to seek the help of InsuranceMall to select the right products based on your need.

InsuranceMall is the leading and first online insurance broker in India. With the motto to make our customer delighted and proud about their decisions, we’re always there to help them with best possible policy.

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