There are five very important things that you have to know about the tax benefits of health insurance plans.
What are the boundaries for claiming tax benefits for medical health insurance
There are five very important things that you have to know about the tax benefits of health insurance plans.
The premium paid in direction of medical health insurance insurance policies qualifies for deduction underneath Part 80D of the Income Tax Act. The profit is on the market to people on medical health insurance premium paid for self, partner, kids, and parents. Importantly, it doesn’t matter whether the youngsters or dad and mom are dependent on you or not.
The quantum of tax benefit will depend on the age of the person who’s medically insured. On the premium paid for self, partner, kids, and parents, the maximum deduction that may be availed is Rs 25,000 for 12 months, provided the age of the person is just not above 60.
If the premium paid by a person is in direction of health policy for his or her father or mother who’s a senior citizen of age 60 or extra, the utmost is capped at Rs 50,000. A taxpayer may, subsequently, maximize tax benefit underneath part 80D to a complete of Rs 75,000 if his age is under 60 whereas dad and mom age is above 60.
For these taxpayer people who’re of age 60 or extra and are additionally paying the medical health insurance premiums for his or her mother and father, the utmost tax benefit underneath part 80D would, subsequently, be a total of Rs 1 lakh.
Tax saved
The maximum that a person can save underneath part 80D (Rs 25,000 considered) for those paying 5.20 %, 20.8 % and 31.2 % tax is Rs. 1,300, Rs 5,200, and Rs 7,800 respectively. This shall be over and above something one saves underneath part 80C of the Income Tax Act.
Health check-ups
Inside the maximum limit of Rs 25,000 or Rs 30,000, the preventive health check-ups get an advantage of as much as Rs 5,000. This implies when you pay a premium of Rs 20,000 in direction of Mediclaim and endure a health check-up costing Rs 5,000, the overall Rs 25,000 could be availed underneath part 80D. Most outstanding hospitals provide preventive health check-up packages. With lifestyle ailments on the rise, it is all the time better to regulate one’s health.
Tax benefit accessible on all sorts of medical health insurance
Each ‘indemnity’ and ‘defined benefit’ sorts of medical health insurance plans would qualify for tax benefit. Not simply the indemnity plans such as a particular person medical health insurance plan popularly known as Mediclaim and Family Floater plans but in addition defined benefit plans similar to everyday hospital money plan and critical illness plan of any standalone medical health insurance firm or a normal insurance firm would qualify for such tax profit.
Cash payment
One could pay a premium in money, however, in an effort to avail tax benefit, the income tax guidelines disallow tax profit on the premium paid in cash. One could, however, pay by Internet banking, cheque, draft and even by bank card to get tax benefit on premium. Nevertheless, cash payment for preventive health check-up is eligible for section 80D benefit.