The Indian market and health insurance are no more two indigestible terms together. With cost of treatment reaching towering heights, health insurance concept has become an instant hit with the masses today. The health insurance sector has undergone a massive progressive change with people understanding the importance of health insurance and the Indian government doing its bit by providing tax benefits on health insurance policies so as to encourage people to take their health seriously.
We all are on look out for tax saving investments throughout the year. Many of us may not be aware that health insurance plans also invite attractive tax benefits. The tax benefit available on premium paid towards health insurance is to the extent of Rs 15,000 under Section 80 (D) of Income Tax Act, 1961 with further benefits available for insuring parents.
Health Insurance Policy and Tax Benefits:
- Premium paid towards health insurance policy is over and above the tax benefit covered under section 80(C), which grants tax rebate for savings up to Rs 1,00,000
- An individual or a Hindu Undivided Family (HUF) can claim tax deduction benefits under Section 80 (D) of Income Tax Act.
- Tax deduction up to the extent of Rs 15,000 of an assesse towards premium paid for health insurance cover for self, spouse and dependent children.
- Additional tax deduction to the extent of Rs 15,000 if buying health insurance coverage for parents who are not senior citizens and Rs. 20,000 if parents are senior citizens.
For example, if an assessee has paid Rs 15,000 towards premium covering himself, his spouse and children and further pays a premium of Rs 20,000 towards health policy of his senior citizen parents then the assessee is eligible to get rebate of Rs 35,000 (Rs 15,000+Rs 20,000)under Section 80 (D).
Rather than investing in other tax saving schemes , it is better to invest in health insurance policies as you will reap dual benefit of saving tax over the limit of Rs. 1 lakh and securing your health as well. What more is required than the monetary benefit of insuring your health and the health of your loved ones!
Insurance is the subject matter of solicitation