Life today is immensely different from a few years ago. In a short period, our way of living has gone through a significant transformation. Our daily routine, including eating, sleeping habits, is affected by the environment that surrounds us and vice versa. As we move forward, these changes are inevitably going to amplify. At such times, health insurance is an assurance of support. The number of people being affected by illnesses at a young age has become alarming. Heart conditions and other diseases that were usually associated with older age are now affecting 20-30-year-olds. Health insurance is an essential purchase to support you in case of a medical emergency financially.
Most people don’t buy health insurance since it can be a financial strain in the present. However, the bitter truth is that medical emergencies always take us by surprise. The need for health-related care is only going to increase as we grow older, along with the costs for their treatment. Medical treatment today requires massive expenses, and they are only going to increase in the future. For a simple procedure, a person has to shell out a considerable amount that can burn a hole in their pocket.
The Mediclaim 80D offers an opportunity to tax-paying individuals to save their hard-earned money. It provides an option to reduce the financial pressure of purchasing a health insurance policy in the present as well as secure the future against medical emergencies. Under section 80(D) of the Income Tax Act, the annual premium paid for health insurance is eligible for a tax deduction. It is a source of significant relief for tax-paying individuals.
An individual who has recently become a taxpayer can find it somewhat challenging to understand the Income Tax procedure. It is in their best interest to be aware of the terms and conditions to maximize their tax benefits. The Mediclaim 80D tax deduction applies to policies securing the health of an individual, their spouse, parents or dependent children. There is a maximum cap on the amount that can be saved as tax benefits under Mediclaim 80D. It depends upon the type of policy as well as the insured person’s profile. Additionally, there is also a provision to claim expenses incurred as part of preventive health-care check-ups upto a specific limit.
The Mediclaim 80D provides certain tax benefits, but it is subject to a set of requirements. Following are a few circumstances that are not eligible for tax deduction:
Mediclaim 80D states that the health insurance premiums that are paid in cash are not qualified for a tax deduction. Any other mode of payment, such as credit card, debit cars, netbanking, are the acceptable modes of payment for tax benefit.
The service charges levied on the health insurance premiums do not come under the Mediclaim tax benefits, and the taxpayer has to pay them in full amount.
The health insurance premium paid on behalf of any siblings will not be liable for a tax deduction under the Mediclaim 80D section of the Income Tax Act.
If your child is above 18 years of age and employed, the premium paid on behalf of them will not be eligible for a tax deduction.
Group health insurance policies are not eligible for a tax deduction under the provisions of Mediclaim 80D. However, in case an additional premium is paid by the taxpayer to improve the group cover, the extra amount can be claimed for tax benefits.
Purchasing health insurance for yourself or your family members has several benefits. It guarantees a financial cushion at the time of crisis and eliminates financial stress along with tax benefits to save money.
A tax-paying individual is always on the lookout to save their hard-earned money. Mediclaim 80D is nothing short of a blessing to individuals saving for the future. The tax exemption can be utilized effectively by the tax-payer to fulfil other financial requirements. To avail of the tax benefits under Mediclaim 80D, you must plan well so that you are ahead of the deadlines. Keep your relevant documents intact to utilize the Mediclaim tax exemption adequately.