Tax Benefits
Get Health Protection for your Family – Avail Tax Deductions up to Rs. 15,000 !!
Tax planning involves not just saving. It is about making a smart choice and taking decisions that would go beyond saving tax and also provide extra protection along with additional mileage. Health Insurance decreases the risk of financial hitch during illness and hospitalisation and also reduces tax liability up to Rs. 15,000 under section 80 (D).
Buying Bharti AXA Health Insurance means owning ‘peace of mind’. It is a must for everyone to ensure complete protection during a medical emergency. Our health protection acts as an umbrella for your entire family, shielding yourself, your spouse and two children with comprehensive protection. You can also protect your lifestyle in the event of any major illness so that your financial liabilities stand protected. What’s more, our range of health insurance policies offers tax exemption!!
Choose from the below mentioned insurance policies to ensure continued health protection along with tax benefits:
- Smart Health Insurance Policy
- Smart Health Critical Illness Insurance Policy
- Smart Health Essential Insurance Policy (Hospital Cash)
| Knowledge about saving tax! Kumar, 35, a resident of Mumbai, wishes he knew more about it. Kumar like many others was oblivious to Health insurance and tax benefits under 80 (D). He falls under tax bracket wherein he has to pay 30% of his taxable income, but only saved money on 80C tax saving tools. While looking out for Health Insurance, he visited Bharti AXA and discovered that our Health Insurance covered most of his focus areas – hospitalization bills, incidental expenses & TAX! He bought Comprehensive Health Insurance for 4 Lakhs with a premium of Rs. 15,692 for himself, spouse and children and got additional benefit of Hospital cash, Critical Illness and Hospitalization expenses, thus securing his lifestyle with adequate health care protection. Above this, he also got deduction on Tax under section 80 (D). He is eligible to claim a deduction up to Rs 15,000 from taxable income. With this wise investment, he saved Rs. 4500, got a cover for Rs. 4 Lakhs, made his life secure and saved tax too! |
Find out more…
What is section 80 (D)?
Under this section in the Income Tax Act, if you invest towards medical insurance premium, you can avail deduction up to Rs.15,000/- for the medical insurance premium for self, spouse and children. There is an additional limit of Rs.15,000 for insurance on parents. And if parents are above 65 years, this limit is Rs.20,000. The maximum allowable limit for yourself, your spouse, your children and your parents is Rs.35,000 per annum. Please note that, to avail tax benefit, you should not pay the premium through cash.
How much do you save?
Insurance premium paid towards health insurance policy is deductible under section 80 (D). You can claim deduction on premium paid towards self, spouse and children. Claim deductions up to Rs.15000 of taxable income on health insurance. Only premium paying individual is eligible for tax benefit under one policy.
The illustration shows the amount you can claim as tax exemption.
| Family Definition | Tax Slab | Sum Insured (in Rs.) | Premium(in Rs.) | Eligible Deduction (in Rs.) | Tax Savings(in Rs.) |
| Mr. Kumar, his wife and his two children | 30% | 400,000 | 15,692 | 15,000 | 4,500 |
| Mrs. Roy and her son | 20% | 300,000 | 9,571 | 9,571 | 1,914 |
| Mr. Mahesh, his wife and his child | 10% | 200,000 | 13,378 | 13,378 | 1,338 |
How would it benefit you?
As per the Tax laws of the country, it is mandatory for salaried and self employed to pay Income tax depending on income levels in a given year. There are various tax saving instruments encouraged by the government offering exemptions to reduce your tax burdens. These savings in turn can be vital for continuing your lifestyle post retirement and to meet various liabilities related to health, children, marriage and education.
When should you start investing?
Start investing NOW! Health emergency can knock you down at any moment of life and it is vital to be protected during any such event. Health insurance takes care of medical cost making it much affordable at your end. The typical time to buy health insurance is between 18-45 years of age. The sooner you start investing the better because your health determines your insurability and cost, which increases with age. Buying at younger age qualifies you for health discounts on the premium.
How can you get the 80 (D) Tax Certificate?
You can find the Tax Certificate attached with the policy document after you buy the health insurance with us. Bharti AXA General Insurance offers tax deduction under section 80 (D) on Comprehensive Health Insurance, Critical Illness, High Deductible and Hospital Cash.
With Bharti AXA, you have the facility of buying your policy online instantly and getting your Tax Certificate immediately.
What should be the mode of payment of buying Health Insurance to avail tax benefit?
To claim tax deduction on Health insurance premium, the payment has to be made either by cheque or credit card. Cash premium payment does not qualify.
Income Tax slabs for Assessment Year 2011-12
| Rate | Men | Women | Senior Citizen |
| 0% | Up to 1,60,000 | Up to 1,90,000 | Up to 2,40,000 |
| 10% | 1,60,001 to 3,00,000 | 1,90,001 to 3,00,000 | 2,40,001 to 3,00,000 |
| 20% | 3,00,001 to 5,00,000 | 3,00,001 to 5,00,000 | 3,00,001 to 5,00,000 |
| 30% | 5,00,001 and above | 5,00,001 and above | 5,00,001 and above |
Please Note: Information presented here is for guidance only. It is not intended to be taken as financial advice. It has not been prepared with regard to individual investment needs and financial situation of any particular person. Insurance is the subject matter of solicitation. For more details on risk factors and terms and conditions, please read the sales brochure carefully before concluding a sale.
