CNN Central News & Network–ITDC India Epress/ITDC News Bhopal: In today’s world, where healthcare costs continue to rise, having adequate medical insurance is not just a prudent financial decision but also a crucial aspect of ensuring one’s well-being. In India, the government recognizes the importance of medical insurance and incentivizes individuals to invest in it through tax-saving provisions under Section 80D of the Income Tax Act. Understanding these benefits and leveraging them effectively can significantly reduce your tax burden while ensuring comprehensive healthcare coverage for you and your family.
Understanding Section 80D: An overview
Section 80D of the Income Tax Act, 1961, provides taxpayers with deductions on premiums paid towards medical insurance policies. These deductions are available for various categories of individuals, including self, spouse, dependent children, and parents. The maximum deduction limits and eligibility criteria differ based on the age of the insured individuals and whether they qualify as senior citizens.
Maximizing tax benefits with health insurance
Deductions for premium payments:
Under Section 80D, taxpayers can claim deductions for premiums paid towards medical insurance policies. For individuals below 60 years of age, the maximum deduction allowable is Rs. 25,000. However, for senior citizens, this limit increases to Rs. 50,000. Furthermore, an additional deduction of up to Rs. 25,000 is permitted for premiums paid towards medical insurance for parents below 60 years of age. This limit rises to Rs. 50,000 if the parents are senior citizens.
Preventive health check-up:
In addition to premiums for medical insurance, taxpayers can claim deductions for expenses incurred on preventive health check-ups. This benefit is subsumed within the overall limit specified under Section 80D. The maximum deduction allowed for preventive health check-ups is Rs. 5,000.
