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The global health crisis has taken a toll on people’s financial health, especially those without medical insurance coverage. Besides the lack of awareness regarding insurance policies, high premiums are another critical reason why people skip buying them.
However, with Section 80D deductions, taxpayers can save significantly on hefty hospital bills.
To make the most of these perks and benefits, you must know the little intricacies of Section 80D deductions for medical insurance. Here is everything you need to know!
Even though the claiming process will not require you to submit any proof of documentation, you must know who all will qualify for this:
You can choose any mode of payment to pay for your medical insurance premium other than cash to claim tax benefits under this section. The perks will be available for the amount paid for the treatment of senior citizens (aged 60 years and above) along with medical expenditure for a preventive health check-up.
Here is a side note for you to explain what preventive health check-up is all about. It is nothing but the annual health check-up that health professionals carry out mandatorily to curb a person’s health risk factors.
Section 80D of ITA allows you to claim tax exemptions of ₹5,000 on that for both you and your family members, and also, you can pay the amount in cash.
Look at the following 80D calculation to understand it better -
Let’s assume you are supposed to pay ₹17,000 for your medical insurance premium in a particular financial year. Plus, you have opted for the preventive health check-up for yourself or your spouse and dependent children. In that case, you will be able to avail tax deduction under Section 80D of an additional amount up to ₹5,000, depending on your expenditure.
Additionally, if you have made certain contributions to any sort of schemes launched by the Government, you will also be able to avail tax benefits under this section.
Now comes the part where you will get to know the 80D maximum limit and how much you can actually save by opting for this. However, note that it varies in terms of different scenarios.
Here are the different deduction limits according to eligibility -
Individuals cannot claim deductions under section 80D if:
He or she has made the health insurance premium payment in cash. Or any payment of medical expenses done in cash is also exempted.
He or she has made the payment on behalf of siblings, grandparents, working children, or any other relative.
He or she has group health insurance offered by the company on behalf of the employee.
As you can see, the tax benefits available under Section 80D for senior citizens is quite significant. Therefore, you can avoid being burdened with financial obligations at that age.
The nation is suffering from a financial crisis after spending a considerable amount on treatments. The Section 80D deduction facility is probably the most popular tax-saving instrument at this point. If you plan to file for ITR under this section, make sure to go through the information mentioned above beforehand to avoid any confusion.
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Disclaimer: 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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