The Income Tax Act 1961 offers various provisions for all taxpayers. It lessens the tax burden on individuals who pay the tax regularly. Section 80D provides plenty of income tax deductions on health insurance policies. Therefore, it provides a tax exemption on health insurance policies.
Moreover, the section provides more tax deductions for Hindu undivided families. There are plenty of tax saving options under this section. The health insurance claims towards your family are exemptible under this section.
Let’s explore in detail the tax savings options available under Section 80D.
The provisions under Section 80D
Under Section 80D, individuals can select any health insurance policy to enjoy tax benefits. Further, medical emergencies are sudden. You can cope with these emergencies by selecting health insurance plans of your choice. Also, health insurance not only provides tax benefits but other benefits as well.
The different tax-saving investments under Section 80D
●The premiums paid for the health insurance policy are exemptible under Section 80D. Further, the expenses on preventive health checkups are tax-free under the section.
● The policyholder can get tax exemptions for health premiums paid for parents. Also, the tax deduction limit depends on the age of the parents.
● The different types of health-based insurance riders receive the same tax deductions. Moreover, it is possible to get extra benefits from a critical illness rider.
The tax deductions available under Section 80D
Section 80D of the Income Tax Act is related to only health insurance policies. Under this section, all the health insurance policies come with tax saving options.
● For individuals and families
When paying health insurance for self and family, the maximum tax deduction is INR 4,50,000/- per annum. While senior citizens can avail a tax deduction of up to INR 50,000.
● For parents and other family members
The health insurance policyholder can claim a tax benefit of INR 25,000/- for paying the parents’ health premiums. Also, this benefit can only be availed if you have parents below 60 years. Moreover, if the parent is a senior citizen, then the claimable limit is INR 50,000/-.
The tax benefits on the different health insurance policy
● For preventive health care checkups
If you are a health insurance policyholder, you are eligible for tax deductions. The limit on health checkup is not more than INR 5,000/-. Further, the claimable amount for senior citizens is INR 7,000/-.
● The deduction on health premiums payments
Under section 80D, there are tax exemptions for premiums paid for health insurance. You can receive deductions up to INR 25,000/- for premium payments for children, spouse, father, and mother.
● The health premiums on a single policy
If you are a single health premium policyholder, then there are tax deductions available for you. That is, if the taxpayer pays premiums in a lump sum, then there are tax exemptions for these payments. However, the limit of tax deduction available on single health insurance is INR 25,000/- or INR 50,000/-.
Conclusion
The health insurance policy is the best tax saving option under section 80D. As a taxpayer, try to invest in exceptional health insurance policies to enjoy the tax benefits.
Keep reading this technology blog for latest updates on or you can submit technology guest posts.
No comments:
Post a Comment