80D Medical Insurance Benefits

Besides protecting you against unexpected healthcare costs, a Bajaj Health Insurance policy is a very efficient tax saving tool. As a Health Insurance policyholder with Finserv Markets, you can avail substantial tax benefits under section 80D medical insurance of the Income Tax Act, 1961. The premium paid towards your Bajaj Mediclaim policy can be claimed as a tax deduction under the Income Tax Act helping you avail health insurance tax benefits. Moreover, the premium paid towards the Health Insurance of your family including your spouse, children and parents is also eligible for tax exemption under section 80D of the Income Tax Act. Therefore, buying a Health Insurance policy will not only help you reduce healthcare costs but also help reduce your taxable income.

Tax Benefits under Section 80D

As per Income tax laws, there are five important Health Insurance tax benefits under Section 80D of the Income Tax Act: -    

a.       The provisions under the section 80D of the income tax laws, allow you to avail tax benefits on the premium paid towards Health Insurance for your parents, irrespective of whether your parents are dependent on you or not.

b.       You can also avail tax benefits up to Rs. 30,000 including the cost of annual preventive health check-ups, based on the premium payments made for Health Insurance of your parents aged 60 years or above, provided you are below 60 years.

c.       In case you are 60 years or above and you are still the paying the premium towards your parent’s Health Insurance, you can avail 80D tax exemption up to Rs. 60,000.

d.       The provisions under the income tax laws also allow you to avail tax exemptions up to Rs. 5000 for the preventive health check-ups expenses incurred for your parents who are above 60 years of age.

e.       If you are aged 60 years or above and you pay for the cost of preventive health check-ups of your parents who are 80 years or above, you can avail tax benefits up to Rs. 65,000.

Eligibility Criteria & Documents Information

You are eligible for the 80D tax benefit for : -

1.       Either yourself or your family members

2.       Your children, spouse and parents

3.       Any other family member who is dependent on you

Documents Required

To avail the tax benefits under Section 80D mediclaim, you will need the premium payment receipt and policy copy which shows the name and age of the family members as well as their relation to you.

Illustration  

Mr. Anand is 62 years old and has purchased a Health Insurance policy for which he pays a premium of Rs. 36,000 annually. Additionally, he also pays Rs 28,000 as premium towards his parent’s Health Insurance policy. His parents are more than 80 years of age and hence they fall under the ‘super senior’ category. Here are the maximum deductions he can avail under Section 80D: -

The maximum Health Insurance tax exemption limit for senior citizens is Rs. 30,000, hence Mr Anand can claim his own Health Insurance premiums as deductions up to Rs. 30,000. Additionally, since his parents are more than 80 years old and fall in the ‘’super senior citizens’’ category he can avail a deduction of up to Rs. 30,000 on their Health Insurance policy. Hence, Mr Anand can claim the entire premium amount, which is Rs. 28,000. Therefore, the total claimable deduction for Mr. Anand will be Rs 58,000 (Rs. 30,000 + Rs. 28,000).

Pre-Requisites

Tax benefits are available to individual health insurance policy owners as well as family health insurance policy owners. 

Section 80D

Health insurance tax exempption under Section 80D are only available to Hindu Undivided Family (HUFs) and individuals. Corporate firms cannot avail these tax benefits. Also, tax benefits can only be availed when the payment of premium is made through DD, cheque or electronic means. Premium payments made by cash cannot be claimed as deductions under Section 80D.

Section 80DD

The healthcare expense incurred for the treatment of a dependent handicap can be claimed as tax deductions up to Rs 50,000 under the section 80DD. Depending on the severity of the disability, the deduction limit under this section can be further extended to Rs 1 Lakh

Section 80DDB

The healthcare expenses incurred by an individual on the treatment of certain diseases such as haemophilia, neurological disorders, Parkinson’s disease, cancer (malignant), AIDS, thalassaemia and chronic renal failure are tax deductible. The deduction limit under this section extends to is Rs 40,000 (for those aged below 65 years) and Rs 60,000 (for those aged above 65 years).

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