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Health Insurance is a crucial instrument that provides you and your loved ones financial security in times of need. Thus, whether an emergency or a planned hospitalisation, a health insurance policy ensures umbrella coverage by helping you pay for the covered medical expenses in case of hospitalisation due to illness or injury.
What’s more, other than safeguarding your finances from hospitalisation expenses, you can avail tax benefits on the premiums paid towards your health insurance under Section 80D of the Income Tax Act, subject to terms and conditions. This makes a Health Insurance plan a favourable tax-planning tool that adds a feather to the cap on your investments.
|Description||Medical Insurance Premium Paid For||Total Deduction^ Under Section 80D|
|Self, Spouse And Dependent Children||Parents (Whether Dependent Or Not)|
|No one has attained the age of 60 years||₹ 25,000||₹ 25,000||₹ 50,000|
|Assessee and his family is less than 60 years and parents are above 60 years of age||₹ 25,000||₹ 50,000||₹ 75,000|
|Assessee and his parents have attained the age of 60 years and above||₹ 50,000||₹ 50,000||₹ 1,00,000|
Note: You cannot claim premiums paid for your in-laws, brothers, or sisters.
^Tax deductions under Section 80D is as per applicable provision of the Act (including any amendments thereto) and are subject to changes in the tax laws. Source: incometaxindia.gov.in/
Health insurance tax benefits are great for your financial planning. However, here are a few things you should know to understand the tax deduction under section 80D better.
Except cash, any mode of payment is acceptable for claiming deduction under Section 80D.