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Life is full of uncertainties. You never know what does your future holds for you.
With the passage of time, things change.
The luxury of good health may also fade with time.
We may not enjoy the comfort of a healthy body for a lifetime.
Though, we may not have a cushion for all the uncertainties.
But we surely have some good alternative to secure the risk of ill health vide health and medical insurance.
Having health and medical insurance, not only provides buffer funds to meet your future hospital bills, it also provides you the benefit of deductions under Section 80D, 80DD, 80DDB, 80U of the Income Tax Act, 1961.
The amount of premium paid on your health and medical insurance which is an expense in your books gets a benefit of deduction under the abovementioned sections.
This means that the amount expended as the premium is reduced at the time of tax computation.
Know More: How To Choose A Best Health Insurance Plan?
In this article, we will briefly discuss the benefits falling under different sections of the Income Tax Act, 1961 for health and medical insurance of self as well as family members.
- Section 80D
- The benefit of premium paid for health insurance policy.
- For self – you can claim tax deduction upto Rs. 25,000/- and for senior citizens – you can claim deduction up to Rs. 50,000/-
- The benefit of deduction under this section is available for the premium paid by cheque or credit card.
- Premium paid by cash does not qualify for deduction under this section.
- The deduction available herein is over and above the deduction under section 80C of Rs. 1,50,000/-
- Section 80DD
- A benefit of premium paid for health insurance of handicapped relative
- Deduction available only for a handicapped dependent relative.
- In case if 40%-80% disablement, the amount of premium up to Rs. 75,000/- can be claimed. For more than 80% of disability- the tax deduction is available up to Rs. 1,25,000/-
- Section 80DDB
- Benefit for expenses spent on medical treatment of a relative suffering disease.
- Expenses spent on the medical treatment of your relative on specified diseases as mentioned in the section is subject to deduction.
- Amount of deduction is available up to Rs. 40,000/-
- Also, the amount of deduction available in case of a senior citizen is Rs. 60,000/- and for a very senior citizen is Rs. 80,000/-
- Section 80U
- Amount expended on self-suffering disability can be claimed under this section.
- In case if 40%-80% disablement, the amount of premium up to Rs. 75,000/- can be claimed. For more than 80% of disability- the tax deduction is available up to Rs. 1,25,000/-
For having a detailed understanding on the deductions under the abovementioned sections, you can also visit this site and follow the following steps:
Step 1:
Under this section : click on Acts under Tax Laws and Rules
Step 2:
The following window will open. Click on Income-tax Act, 1961 as shown below:
Step 3:
Then mention the section no.
On the left side of the screen enter the section no. and enter search
You will get the details of all the required sections
Health and medical insurance not only shield you against any the consequences future mishap but also provides you a relief of having financial stability.
So without any further delay, go ahead and plan a healthy future for yourself as well as your family members. Enjoy the benefits of deduction as well as the benefit of a secured future.
Happy Learning!!
