A massive amount of income is spent on medical treatments and hospital bills in India. Every individual pours his hard-earned money in health care, which eventually exhausts his savings. Hence, the rising medical costs have made an investment in health insurance a need of the hour. It is a basic necessity to not only cover for the medical expenses but also to save money by offering tax benefits.
A mediclaim policy falls under Section 80D of the Income Tax Act, 1961. Before availing a health plan for you and your loved ones, take a look at the health insurance tax benefits under Section 80D mentioned below:
About section 80D tax benefit:
- Under section 80D of the Income Tax Act, 1961, a policyholder can claim a tax deduction of Rs. 25,000 for a health insurance premium along with check-ups for himself and his dependents.
- On purchasing a medical policy for parents, a policyholder will receive an additional deduction up to Rs. 50,000. That way, he/she can avail a tax-saving benefit up to Rs. 75,000.
- If the policyholder’s parents are below 60 years, he/she can claim a deduction of Rs. 25,000. Hence, the maximum deduction amount one can obtain on purchasing a health plan is up to Rs. 50,000.
- When the policyholder’s parents are above 60 years, the additional deduction amount obtained is Rs. 50,000. That way, he/she is eligible to receive an additional deduction up to Rs. 1 Lakh.
How to maximize tax benefit on the entire family’s income?
In India, a majority of times, it is observed that both the partners are working professionals. Hence, when the spouse is an earning member as well, he/she can also claim a deduction of Rs. 50,000 under 80D tax exemption. That way, the other partner can help in reducing his/her taxable income and of the entire family with ease.
For instance, if the supporting partner is the wife, then she will not only purchase a health insurance policy for the entire family but also claim a deduction for herself, her husband, her kids, and her parents. In the same way, both the partners can buy a separate health insurance plan for their entire family and their respective parents and save tax on the whole family’s income.
How to claim the maximum deduction in case of a single parent?
There are times when a single parent is the breadwinner of the house. When an insured partner dies, the other parent can continue to hold the same policy. In that case, the policyholder can renew the plan under the single partner’s name and claim a deduction based on the premium or of Rs. 50,000 (whichever is lower).
To sum up, taxes are no longer the most dreaded part of an investment. However, while availing tax benefits, an individual must seek professional help to avoid any confusion in the future. Bajaj Allianz health insurance available on Bajaj Finserv MARKETS offers tax-savings benefits to all the buyers for saving more money for a brighter future. Not just tax benefits, there are several other health insurance benefits you should be aware of to fully make use of your policy. Head to Bajaj Finserv MARKETS to get a free quote today!
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