Health Insurance Tax Benefit

Tax Benefits of up to ₹25,000 with Digit Health Insurance

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Health Insurance 80D Tax Benefits - Save Up to ₹31200/- Annually

Imagine! You get two benefits with just one easy step; how wonderful, right? Such is the thing with having a health insurance plan; you get both financial security in medical circumstances, along with tax benefits! The Health insurance premium paid offers tax benefits under Section 80D of the Income Tax Act.

How Much Tax Benefit Can I Get on Health Insurance?

The Health insurance premium offers tax benefits under Section 80D of the Income Tax Act.

Scenario	Maximum Deduction under 80D
Self and Family (All members below 60 years)	₹25,000
For Self and Family + Parents (All members below 60 years)	₹25,000 + ₹25,000) = ₹50,000
For Self and Family (all members below 60 years) + Senior Citizen Parents	₹25,000 + ₹50,000 = ₹75,000
For Self and Family (with eldest member above 60 years) + Senior Citizen Parents	₹50,000 + ₹50,000) = ₹1,00,000

Rs 5000 for preventive ‘health check-up’ is included in the above maximum limits.

The maximum that one can save under Section 80D (Rs 25,000) for those paying 5.20 percent, 20.8 percent and 31.2 percent tax is Rs. 1,300, Rs 5,200, and Rs 7,800 respectively. This will be over and above anything you can save under Section 80C of the Income Tax Act.

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Health Insurance Tax Benefit for Senior Citizens

Health insurance premiums for senior citizens are always on the higher side. Insurance companies may also be disinclined towards providing medical insurance for those who are old or suffer from pre-existing ailments.

However, Budget 2018 came with some relief for senior citizens who have high medical expenses and are unable to buy health insurance policy due to pre-existing ailments or can't afford to pay high premiums.

The Budget has amended Section 80D which allows a deduction for medical expenses incurred on senior citizens. This deduction can be claimed by the senior citizen himself/herself or by his/her children if the children are incurring medical expenses for their senior citizen parents.

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Know more about

What Documents Do I Require to Claim the Deduction?

The only documents required to claim the deduction is your premium payment receipt and your insurance policy copy which shows the name of the family members and their relation and age. In case of premium paid for parents policy, the proposer should ask for an 80D certificate from the insurance company by providing the payment details in his name.

Important Points to Remember:

Go through tax exemptions in your policy carefully.
Avoid payment of premium in cash.
The maximum deduction under section 80D can be Rs 1,00,000 in case you buy Health insurance for yourself or your parents and both you and your parents are senior citizens.
HUFs (Hindu Undivided Family) can also claim this deduction for premium paid for insuring the health of any member of the HUF.
To avail deduction, the premium should be paid in any mode other than cash. However, the payment for Preventive Health check-ups can be done in cash.
Benefits under Section 80D are available over and above the limit of ₹1.5 lakh under section 80C.
The amount available for senior citizens’ deduction can also be spent on medical expenses.
A Health insurance premium paid at one go allows tax benefits for the number of years of insurance cover.

Health Insurance other than safeguarding your pocket from medical expenses, you can avail tax benefits on the premiums paid towards your health insurance under Section 80D of the Income Tax Act. This makes a health insurance policy a beneficial tax-planning tool which is definitely a wise investment to make for your future.

We hope we have answered all the questions that come to your mind. If you have more questions, feel free to get in touch with us. A piece of expert advice is always helpful!

Tax Benefits of Health Insurance

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FAQs About Health Insurance Tax Benefits u/s 80D

All

Can I Claim 80D for my Siblings?

No. Siblings or relatives, who are not a direct dependent of the taxpayer are not eligible for deduction under Section 80D.

For the Corporate Health Insurance Provided by my Company, the Premium is Paid by the Company and not Recovered From my Salary. Can I Claim the Said Premium as Deduction Under Section 80D?

Section 80D allows premium paid as deduction in computation of total income. In your case, since there is no deduction from your salary, the said premium cannot be said as to be paid by you. Thus, you will not be eligible for deduction under Section 80D while computing your tax liability.

The Premium on my Health Insurance Provided by my Employer is Recovered From my Salary and Shown in the Pay-Slip. Can I Claim the Said Premium as Deduction Under Section 80D?

Yes. Since the premium is recovered from your salary, it can be claimed under Section 80D.

Download Health Insurance Policy Wordings

Click here for Policy wordings | Digit Health Care plus policy - Benefit illustration

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Disclaimer #1: *Customer can choose options at the time of availing insurance. Premium amount may vary accordingly. Insured is required to disclose any pre-existing condition or on going treatment before policy issuance in the proposal form.

Disclaimer #2: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.

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