Health Insurance or Mediclaim is essential for everyone as it provides a comprehensive protection against health related medical and financial emergencies. One major advantage of buying a mediclaim is to incur tax benefits that come under Section 80 D of the Income Tax Act, 1961. The rate of income tax is different for different income levels, and thus, the income tax that we pay depends on our total earnings in a given year. Purchasing a health plan can save up this tax. Read on to know more about Section 80 D and invest your money wisely in the health plan that suits you the best.
What is Section 80D?
• Section 80D of the Income Tax Act is meant for deduction of medical insurance premium for health care of the taxpayers, whether senior citizens or otherwise.
• According to the Budget 2008-2009, several beneficial changes have been made in Section 80D of the Income Tax Act of India. This amendment is made by the Government as given in Memorandum to Finance Bill 2008.
How to save tax under Section 80D while buying a Mediclaim?
a) This section covers medical insurance policies taken for self, spouse, dependent parents and children. Section 80D is applicable only on the persons mentioned and the tax law doesn’t admit any other relatives except above in this section.
a) In case of an individual, deduction is available on the Mediclaim premium paid only by cheque (and not by cash) on his own health or health of a spouse/dependent parents/dependent children.
b) If part payment is done by self and part payment by the parent, both can claim deduction to the extent of their contribution subject to maximum allowed.
c) This section provides a deduction of Rs 15,000 for premium paid towards health insurance and also includes coverage of critical illness.
d) In a case of senior citizens, the deducible amount goes up to Rs 20,000.
a) Thus, you can get a further exemption on the health insurance covers purchased for your parents to the extent of Rs 15,000 (Rs 20,000 if they are senior citizens) along with a tax exemption of Rs 15,000 on health insurance bought for your family. This means, you are eligible for Rs 30,000, double the deduction from previous years.
We, at ICICI Lombard, bring you two innovative health plans that provide tax benefits under the Section 80D - Health Advantage Plus Insurance and Family Floater Insurance.
The Health Advantage Plus policy enables you to save tax up to Rs.4,635 while purchasing. Plus, you can claim OPD (Outpatient Department) up to Rs. 10,000 (depending on sum insured chosen and age of the insured) . It means your total savings comprise of tax savings plus OPD reimbursement.
The Family Floater Insurance policy also provides the tax benefits that come under Section D of the Income Tax Act where you save up Rs. 5099 on the tax payable. The Floater policy also features benefits such as a health check-up coupon for free and an option to pay in EMIs without any extra charges on every policy, which add up to your savings. Thus, purchasing of the plans mentioned above help you in tax planning and save both your health and money. Click here to calculate your tax, we provide you a special tax calculator, which will help you to plan your savings smartly.
Tags: health insurance tax saving, saving tax, tax benefits, tax calculator
