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Understanding Tax Deduction on Health Insurance

Know how you can benefit from paying tax by opting for a health insurance policy for yourself, your spouse, kids and parents. Read more about tax deduction on health insurance here. https://www.coverfox.com/health-insurance/articles/tax-deduction-on-health-insurance/

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Understanding Tax Deduction on Health Insurance

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  1. Understanding Tax Deduction on Health Insurance Search. Compare. Buy

  2. What is Deduction on Health Insurance? • A ‘Deduction’ in Health Insurance is an amount a person is a eligible to claim as exemption under section 80D of The Income Tax Act, 1961. • This amount reduces a persons tax liability against the premiums paid towards his health insurance policy. • A policyholder can get tax deduction of up to Rs. 50,000 under section 80D (up to 60,000, if policyholder and parents are above the age of 60).

  3. What Deductions are Allowed Under Section 80D? Money spent on premium paid for: Self Self, Spouse, dependent children and parents Preventative health check-up

  4. Tax Deduction on Health Insurance

  5. Claim Deduction on Preventative Health Check-Ups • A preventative health check-up is a type of medical check-up done for the prevention of diseases. • It is a measure taken towards preventing hospitalisation for any kind of treatment • You can claim tax deduction up to Rs. 5000 within existing limits of section 80D. • Note: You can only claim tax deduction on preventative health check-up if your premium paid is less than the maximum allowed limit.

  6. Section 80DD in Health Insurance

  7. Section 80DDB - Deduction for Specified Critical Disease Diseases covered: • Neurological diseases • Malignant cancers • Full blown acquired immune deficiency syndrome • Chronical renal failure • Hematological diseases

  8. Section 80U - Deduction of Disability for Individual This provides tax deduction for individual who is suffering from disability Disabilities covered: • Blindness • Low vision • Leprosy-cured • Hearing impairment • Loco motor disability • Mental retardation • Mental illness • Autism • Cerebral palsy

  9. Exclusions for claiming tax deduction • No deduction is available towards premium paid for health insurance of in-laws, siblings and children who are not financially dependent on you. • In order to avail the tax benefits one has to pay the premium in any mode, except cash. You can pay through credit card, debit card and even net banking. • Recommended Read: https://www.coverfox.com/health-insurance/articles/tax-deduction-on-health-insurance/

  10. Search. Compare. Buy

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