If you’ve been working for a while, you’re aware of this. However, there are numerous other lesser-known health insurance tax advantages. Failure to be mindful of these may disqualify you from receiving tax benefits on your policy, so think ahead and keep reading to learn more about health insurance income tax deductions. **
What are the tax advantages of having health insurance?
Health insurance is one of the most important investments anyone can make to ensure complete security for themselves and their families during medical emergencies. Health insurance plans do more than help you save money on medical expenses; they also provide appealing tax benefits. Many people invest for tax advantages, even in life and health insurance. So, is health insurance taxable? ** ##
It certainly is! The premium amount paid for health insurance is tax deductible. Section 80D of the Indian Income Tax Act allows you to deduct your health insurance premiums. The amount you pay for health insurance premiums can be deducted from your taxable income (subject to certain limits).
This reduces your taxable income and, as a result, your applicable tax.
Tax advantages in health insurance through tax income tax act, section 80D –
Health insurance plans for family or self are a sound investment at any age. It is a low-cost way to protect yourself and your family from unexpected medical expenses. You can choose from various health insurance policies depending on your specific needs.
Because the health insurance income tax deduction is substantial, it reduces the money outflow for taxes in the fiscal year for which taxes are calculated.
Critical illness premiums paid and riders –
The premium paid for family floater plans, which typically cover your spouse, children, and dependent parents, is tax deductible. It’s also worth noting that any insurance add-ons or ‘riders’ purchased with your existing policy and critical illness coverage can be claimed as part of your overall health insurance tax benefit. **
How much health insurance tax benefit can you claim under section 80D?
The Income Tax Act specifies deductions for premium payments to encourage people to choose adequate health insurance coverage in india: a policy for self and family and a policy for dependent parents. As a result, medical insurance premiums paid under 80D can be claimed on individual and family health policies. **
Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) can also claim health insurance income tax deductions for policies purchased in India.
The deduction lowers taxable income. The health insurance tax credit under Section 80D is expected to raise public awareness of the importance of health insurance coverage. **
Many people need clarification on whether health insurance is tax deductible or how much the health insurance tax benefit under Section 80D is. **
Let’s see how much of an income tax deduction you can get for health insurance:
- The mediclaim deduction limit is determined by the primary policyholder’s age.
- You may claim an income tax deduction for an individual/family floater policy purchased for you/you and family and a separate health insurance policy purchased for dependent parents for which you pay the applicable premiums.
- Non-Resident Indians (NRIs) who purchase a health insurancepolicy in India for themselves or their parents can claim a maximum deduction of 25,000 (regardless of age).
- The Preventive Health Checkup (PHC) allowance is only available if you do not meet the mediclaim deduction limits mentioned above.
- The PHC limit is 5000 for policyholders under 60 years old and 7000 for senior citizens.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
