(Newswire.net — December 3, 2021) —
Health is one of the most important things that we have. However, due to stress, adulteration in food, a sedentary lifestyle, high pollution levels, can result in many of us getting sick. This also leads us to visit the doctor’s clinic repeatedly. As a result, we may end up paying a lot of money for the treatment and consultation, more than we can ever imagine. This is why buying a health insurance policy is so important. Even if the hospital bill keeps getting higher, you do not need to worry at all. Everything is taken care of by the insurance company.
Is a health insurance policy all about managing the hospital bills? Well, the benefits go well beyond that! A health insurance policy can even help us a lot in saving our taxes. Wondering how? Let us discuss this in detail.
Under Section 80 D of the Income Tax Act, certain significant norms enable the policyholders to enjoy the benefit of income tax exemption. However, it completely depends upon the premiums that are paid for the health insurance policy.
As a policyholder, you can avail of a deduction of up to INR 25,000 annually, against the premium that is paid for a health insurance policy. The coverage that the policy provides can be availed of by the policyholder, his/her spouse, and dependent children. If the policyholder or their spouse is more than 60 years old, the limit of tax benefits on senior citizen health insurance policies increases to INR 50,000. The limit is further supported by an extra coverage of INR 5,000 for expenses that are required for regular health check-ups of the family members, which include spouses, dependent children, and parents.
Eligibility for Income Tax Deduction under Section 80D of Income Tax Act
The premiums paid by the policyholders towards health insurance coverage are exempted from their income tax liability for a certain financial year. If you have bought a family floater health insurance policy that covers your spouse as well as your children, the premiums that you pay for the coverage help you to lessen the income tax liability. The members who can enjoy the benefits under this section of the Income Tax Act include the policyholder himself/herself, the spouse of the policyholder, children of the policyholder, and the elderly parents who are dependent on the policyholders. Based on the premium of an individual member, which is subject to the upper limit of tax benefit under this section of the Income Tax Act, the tax benefit can be claimed by Hindu Undivided Family (HUF).
Tax saving under Section 80 DDB
Apart from offering the necessary financial support to the policyholder in paying the hospital bills, the health insurance policy also enables the senior and very senior citizens to enjoy health insurance tax benefits. Under section 80 DDB of the Income Tax Act, senior citizens can enjoy tax deduction benefits of up to INR 640,000. The very senior citizens can enjoy tax deduction benefits of up to INR 80,000. However, while filing for the income tax return, attaching a certificate that has been issued by a doctor is mandatory.
Just like this, under various sections of the Income Tax Act, tax deduction of a certain amount can be availed of by the policyholders. If you want to know more about tax saving through health insurance policies, you can visit the website of IIFL. You will not only be enlightened with this specific information but can also find several health insurance policies that you can consider. You can compare each of them before deciding on the one that suits you the best. You can also use the health insurance premium calculator to get an idea of the premiums that you would be required to pay on purchasing a policy.