Learn About Health Insurance Tax Benefits

1. Learn About Health Insurance Tax Benefits

2. Health insurance is a blanket that can cover you financially during a medical emergency. With medical costs on the rise, it is imperative that everyone secures themselves with adequate health insurance. • According to Section 80D of the Income Tax Act, 1961, you can avail tax benefits on the premiums paid towards your health insurance. Due to these health insurance tax benefits, you can enjoy certain deductions on your tax, which is an added advantage of buying health insurance. Now, there are certain terms and conditions to these tax benefits. To help you understand better how the tax deductions work, here’s a brief explanation of the same as per the Income Tax Act under Section 80D.

3. As per Section 80D of the Income Tax Act, health insurance premiums paid in cash are not included in the tax exemption clause. This means that you will not qualify for health insurance tax benefits if you pay your premiums in cash. However, all other modes of payment including cheque, net banking, demand draft, debit card, and credit card qualify for tax exemption. • Tax exemptions are not valid on additional charges like GST, processing fee, service charge, etc. but only on the exact amount of the health insurance premium. • Health insurance plans, including family plans that provide coverage to your children, spouse, and dependent parents, all qualify for tax deductions. • If your health insurance consists of a critical illness coverage add-on, then the premium paid for this rider can also be claimed for a tax deduction.

4. Let’s look at the specific amounts of deduction • Under Section 80D: If a person is covered by a plan that offers health insurance for their family, including themselves, their spouse, parents as well as children, then they can avail health insurance tax benefits of up to 25,000. And if a person takes health insurance for their parents who are more than 60 years of age, they can claim a deduction ofa up to Rs. 30,000.

5. Under Section 80DD: If you have paid the health insurance premium for a handicapped family member, then you can claim a deduction of up to Rs. 75,000 as per section 80DD. • Under section 80DDB: As per section 80DDB, a policyholder may claim deduction on medical costs incurred due to the treatment of a family member who is affected by diseases such as AIDS, dementia, chronic renal failure, certain cancers, and a number of other conditions. The deduction can go up to Rs. 40,000. • Under section 80U: As per the 80U section of the Income Tax Act, a disabled person qualifies for a tax deduction in the range of Rs. 75,000 to Rs. 1,25,000, depending on the severity of their condition.

6. In conclusion, buying health insurance helps lower your tax liability. So, it is a smart choice to invest in a medical insurancepolicy that provides both financial safety and tax benefits. Hope this article has helped you understand more about health insurance tax benefits. Good luck!

7. For More Details On Health Insurance Tax Benefits Or You Can Visit https://www.cocogeneralinsurance.com/health-insurance/ THANK YOU