ATK
New Delhi [India], May 20: In this present fast-paced world, ensuring your well-being and safeguarding your health is one of the most significant aspects. Hence, securing yourself financially through medical insurance policies is a wise step towards ensuring your and your family's happy and healthy life.
However, in the case of taxpayers, investing money in health insurance comes with an added benefit. For the premium that you pay for your health insurance, you get a tax deduction under section 80D of the Income tax. Therefore, it is beneficial in not only letting you maximise your savings, but also providing you with a sense of peace in your mind.
To learn more about the types of 80D deduction according to the type of health insurance plan, keep reading this article.
Section 80D Deduction for Premiums of Multi-Year Health Insurance Paid in Lump Sum
There are several individuals who prefer to opt for a multi-year health insurance plan in order to be eligible for a long-term policy discount. Even though the terms and conditions related to a multi-year health insurance plan may differ among various insurance providers, most of the companies usually offer long-term policy discounts to the beneficiaries.
Under 80D deduction, you can claim a deduction in the premium amounts of your multi-year health insurance policy. However, you can only be eligible to claim the deduction if the premiums were paid in a lump sum at the time of purchasing the policy. Similar to a one-year health insurance plan, you can claim an overall deduction of Rs. 25,000 in a year.
Section 80D Deduction for Premiums of Medical Expenses for Senior Citizens
With the increasing medical inflation rate, opting for health insurance has become a necessity for senior citizens. Since with their growing age, they tend to become more prone to diseases and injuries, it is essential for them to be under constant medical attention. Such awareness has made numerous people opt for medical insurance for senior citizens.
As a policyholder, you are eligible to raise a claim for deductions in the premium amounts under Section 80D of the Income Tax Act. Since healthcare plans for senior citizens require higher coverage, the premiums tend to be higher as well. As per the deduction mandate by the Indian Government, you are eligible to claim a maximum deduction of Rs. 50,000 in one financial year in your premium amounts.
Section 80D Deduction for Premiums for a Dependent with Disability
If you have any dependent members like spouse, siblings, parents and children who are suffering from any kind of disability, you are eligible to claim a deduction of Rs. 75,000. This should be in one financial year maximum as per the Section 80DD limit. The deduction would be on the various medical expenses of the person with a disability.
In case the dependent member suffers from more than 80% disability, the Section 80DD deduction limit can go up to Rs. 1,25,000 in one financial year. However, you can claim such a deduction if you have made a lump sum payment or annuity for maintaining the good health of the dependent person with a disability.
Nevertheless, to have access to this tax benefit, you need to provide a disability certificate. That certificate has to be issued by a medical board of the state or central government and has to be submitted at the time of filing the income tax returns.
Section 80D Deduction for Premiums for Treating Specified Illnesses
You are also allowed to claim a deduction under Section 80DDB of the Income Tax Act, on the medical expenses for specified illnesses. This includes AIDS, malignant cancers, dementia, chronic renal failure, Parkinson's disease etc.
Hence, for such specified illnesses, you can claim a maximum deduction of Rs. 40,000 in one financial year. However, this Section 80DDB deduction limit can go up to Rs. 1 Lakh if the insured member is above 60 years of age.
Nevertheless, you need to provide suitable proof, attached with the income tax returns in order to avail such deduction on the medical expenses.
The Bottom Line
To conclude, Section 80D deduction of the Income Tax Act helps you in saving a considerable amount of tax payable. However, it is essential to be aware of such deductions before you dive into the world of health insurance policies in order to make the most of such facilities. Therefore, whether you are opting for an individual healthcare plan or your family, make sure to go through the terms and conditions cautiously to learn about the implementation of this section in the policy.
To get an affordable health insurance policy with the best features and easy claim process, contact ACKO.
(ADVERTORIAL DISCLAIMER: The above press release has been provided by ATK. ANI will not be responsible in any way for the content of the same)
