Section 80D of the Internal Revenue Code permits you to claim tax deductions on the premiums you pay on purchasing health insurance. This provision is of critical importance to both your tax preparation and your financial management.
Under section 80D, what kinds of deductions are permitted?
- The amount of money paid each month as a premium for health insurance coverage.
- The amount of money spent on the medical treatment of members of the family, including the parents.
Under section 80D, one can submit a claim for a tax deduction for the amount spent on maintaining health insurance coverage. The maximum amount that can be paid out under the plan’s terms is established by considering the age of the insured individual.
|Age Below 60 yrs.||Age Above 60 yrs.|
|Self, Spouse & Children||25,000||50,000|
People 80 or older typically cannot obtain health insurance because it is no longer offered. As a result, the highest amount of the deduction that you are eligible to claim can go as high as Rs 75,000, provided:
- Your family is in the “below-60 age category,” which qualifies you for the maximum deduction of 25,000 rupees.
- Your parents are older than 60 years old (max deduction of 50,000)
Advice: For wiser financial planning, evaluate the benefits on health insurance premium calculator online to find the affordable plan type.
Who is eligible for the section 80D deduction?
Under Section 80D of the ITA, taxpayers can deduct the cost of their health insurance premiums and money spent on preventative medical exams.
Under Section 80D, an individual or a HUF can also claim a deduction from their taxable income. A person is eligible to receive a tax deduction for the cost of their health insurance premium and any money spent on preventative medical exams for themselves, their spouse, their dependent children, and their parents. This is contingent upon adherence to the provisions outlined in Section 80D of the Income Tax Act of 1961.
Per section 80D, what kinds of things are not allowed?
The deduction under Section 80D may not be allowed:
- If the monthly premium for health insurance is paid in cash, whcih is an unacceptable form of payment for the cost of medical care.
- If payment is paid on behalf of working children, siblings, grandparents, or any other employed relative.
- If the payment of the employee’s portion of the group health insurance is paid by the firm on the employee’s behalf
Per section 80D of the Income Tax Act of 1961, what is the maximum amount that can be deducted?
The amount that can be deducted thanks to Section 80D is capped at 25,000 Indian Rupees for everyone under 60 years old. The limit of 25,000 rupees can be coupled with 5,000 rupees for preventative medical examinations. If the insured person is older than sixty, the maximum amount that can be deducted rises to fifty thousand rupees. Be wise to compare health insurance plans prior to investing.
Tax benefit is subject to change in tax laws.
‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.