Health Insurance Tax Benefits You Need To Know

1. Health Insurance Tax Benefits You Need To Know Since "Health is Wealth," as is sometimes said, you must take good care of your own and your family's health. Having health insurance or a medical policy is crucial due to the escalating costs of hospitalization and medical care. It not only makes sure you don't go bankrupt after getting sick, but it also offers enough coverage. The tax advantages for health insurance are listed below for your information. You can use these to claim a tax deduction under the proper provisions.  Deduction Under Section 80D Of The Income Tax Individual taxpayers may claim a deduction for premiums paid under section 80D of the Income Tax Act from the Government of India. Even benefits on premiums paid to cover severe sickness are available. For me and my immediate family (spouse and dependent children): You are permitted to claim up to INR 25,000 in a given financial year, which includes the sum for you, your spouse, and any dependent children. If you or your spouse is a senior citizen, defined as someone who is 60 years of age or more, the deduction limit increases to INR 50,000. Any health examination you may have had during that financial year, up to a maximum of INR 5,000, is also covered by the deduction. For Parents Parents or legal guardians' medical insurance premiums are eligible for a deduction of up to INR 25,000 every financial year. The maximum limit increases to INR 50,000 per financial year if either of your parents is a senior citizen. The lower of the actual premium or the permitted limit under this provision is always the maximum amount that qualifies. The cost of the medical exam must be included in this. Deduction Under Section 80DD of the Income Tax Act You may be eligible for health insurance tax advantages up to INR 75,000 if you have a dependent who is disabled. Based on the costs associated with nursing, medical care, rehabilitation, etc. If you have a severe disability, you may be eligible for up to INR 1.25 lakh. Here, "dependents" refers to your partner, kids, parents, or siblings. However, you must provide accompanying medical records to claim the discount. Deduction Under Section 80DDB of the Income Tax Act You may deduct INR 40,000 for all of your medical expenses if you are receiving treatment for a specific illness. The personal allowance is INR 1 lakh if you are submitting a claim on behalf of a senior citizen. This contains the medical procedures for illnesses listed in Income Tax Act Rule 11DD. The self, spouse, parents/guardians, children, and siblings are all eligible for this deduction.  

2.  No Tax Benefit on Cash Payments or Group Health Insurance To be eligible for health insurance tax benefits, medical insurance premium payments must be made via internet banking, draught, check, debit card, or credit card. Cash-paid installments are not eligible for a tax deduction. However, monetary contributions and tax deductions are accepted for preventive health checkups. Furthermore, your employer-paid group health insurance premiums are not subject to tax benefits.

3. To Get In Touch Email Us:admin@policyghar.com Phone Number:1800 8900 113 Visit Us:https://policyghar.com/