Many of us buy health insurance policies for securing health and ensure complete protection against medical expenses. However, health insurance policies also help in saving tax upto Rupees. 55,000. This indicates that health insurance policies act as a crucial tool to save tax. Let’s understand it in a bit detail on how does the section 80D works?
All about Section 80D
It is usually referred as Deduction on Section 80D in Income Tax Act (Tax deduction based on Health Insurance Premiums Paid) You are allowed to claim a deduction up to Rs. 55,000 per budgetary year for medical insurance premium installments. The premium should be for you, your spouse, and dependent children. The deduction section of 80D for medical insurance is beneficial indeed.
80D section deduction helps in saving tax every year, higher the plan Sum Insured, higher the premium amount and big savings on tax. Senior citizens and super senior citizens enjoy a much higher tax savings.
Persons Covered | Exemption Limit | Health Check-Up Exemption | Total |
Self and family | Rs.25,000 | Rs.5,000 | Rs.25,000 |
Self and family + parents | Rs. (25,000 + 25,000) = Rs. 50,000 | Rs.5,000 | Rs.55,000 |
Self and family + senior citizen parents | Rs. (25,000 + 30,000) = Rs. 55,000 | Rs.5,000 | Rs.60,000 |
Self (senior citizen) and family + senior citizen parents | Rs. (30,000 + 30,000) = Rs. 60,000 | Rs.5,000 | Rs.65,000 |
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