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What are the Tax Benefits for Health Insurance you should know about

Whether you are a married person or yet to be hitched, if you want to make sure that your financial planning is right, you must have a health insurance policy. Why a health insurance plan? Well, no matter how much wealth you make, if you are hospitalized with a critical illness, a major chunk of your earned money is going for your treatment. Although we cannot predict if we ever need to get hospitalized or not but we can at least take the necessary measures for that. Therefore, one of the most important things that you need to purchase is a health insurance policy.

Although the majority of us consider a health insurance policy to be used when we are hospitalized, we often forget that it comes with tax benefits as well. Now if you want to know the several health insurance tax benefits, please spare some time and continue reading this piece of information.

Deduction Under Section 80D of the Income Tax Act

Under Section 80D of the Income Tax Act, individual taxpayers are offered a deduction on the premiums that they pay by the Government of India.

For Self and Immediate Family

You will be able to claim up to INR 25,000 in a fiscal year, which also includes the amount for you, your spouse, and your children who are dependent on you. If you and your spouse fall into the senior citizen category, the deduction limit will go up to INR 50,000. The deduction amount extends to coverage of health check-ups for up to INR 5,000, which you may undergo in that particular fiscal year.

For Parents

The medical insurance premiums that you pay for your parents are eligible for a deduction of up to INR 25,000 each fiscal year. If even one of your parents is a senior citizen, the maximum limit will go up to INR 50,000, each fiscal year.

Under this section, the maximum qualifiable amount is lower than the actual premium. This also includes the amount required for medical check-ups.

Deduction Under Section 80DD of the Income Tax Act

If a family member of yours has some kind of disability and is dependent on you, you will be able to claim health insurance benefits up to INR 75,000. This depends on the expenses that were needed for medical treatments, nursing, rehabilitation, and many more. If the disability is extreme, you will even be able to claim up to INR 1.25 lakh. In this case, the dependents can be your spouse, children, siblings, or parents. However, if you want to claim the deduction, you have to produce medical certificates that support the disability.

Deduction Under Section 80DDB of the Income Tax Act

if you are undergoing treatment for a particular disease, you will be able to claim a deduction of INR 40,000 for all the medical expenses. If you have a senior citizen on whose behalf you are claiming it, the limit of benefit is INR 1 lakh. The treatments for illnesses come under this in Rule 11DD of the IT Act. You can claim this deduction for yourself, your spouse, children, siblings, and parents.

To sum it up, you can enjoy tax benefits as you purchase a health insurance policy. Now, if you want to know more about such deductions, you can visit the website of IIFL. Apart from this, you can also find out information about the several types of health insurance policies that are available in the market and that you can opt for. you can even use the health insurance premium calculator to know about the premium amounts that you will be required to pay.

Sanket Goyal
the authorSanket Goyal