Buying Health Policies is the wisest thing to do today. With the rising costs of fees and hospitalisation, the policy becomes a worthwhile investment. Your Health Insurance removes the burden of paying for medical expenses, including surgeries, hospitalisation costs, and medical reports. Moreover, the government grants several concessions and tax benefits on the premium paid towards policies.
Here are the various benefits you can claim and the money you save from investing in Medical Insurance.
Deduction under Section 80C
In this section, you can avail of exemptions on any amount paid as a premium towards the General Insurance company, depending on your age bracket.
- If you are under 60 years and paying premiums for self, spouse, and dependent children, you can claim a deduction up to 25,000.
- If you pay for the Medical Policies of your parents under 60 years, you can avail of another deduction of 25,000.
- If you and your spouse are under 60 years while your parents qualify as senior citizens, get tax exemptions of 25,000 + Rs. 50,000 (for senior citizens).
- If you are above 60 years and paying premiums for yourself and your parents, get deductions of 50,000 + Rs. 50,000, i.e. a total of Rs. 1 lakh.
Tax-saving under Section 80DDB for Critical Illness treatment
You can use your Health Insurance Policy for critical illnesses. The premium payer can avail of exemptions of Rs. 40,000 (for patients under 60 years), Rs. 60,000 (for patients over 60 years but under 80 years), and Rs. 80,000 (for patients above 80 years) for treating diseases such as cancer, cardiac diseases, renal failure etc. However, submit your doctor’s certificate while filing IT returns to claim this deduction.
Tax-saving under Section 80 U for people with disabilities
Those with disabilities are eligible for an annual deduction of Rs. 75,000 (in case of at least 40% disability) under this section. The level of disability is also considered, and those falling under the severe disability bracket, i.e., exceeding 80%, can get tax deductions up to a maximum of Rs. 1.25 lakh. Common disabilities covered include:
- Low vision
- Hearing impairment
- Locomotor disability
- Mental illness/ mentally challenged individuals
- Cerebral palsy
Tax-saving under Section 80DD for treatment of dependent with a disability
If you have bought the Medical Insurance Policy and are bearing the expenses of the person with a disability, who may be your spouse, child, or sibling, they can avail of a deduction of Rs. 75,000 to Rs. 1.25 lakh for expenses incurred towards the treatment, nursing, rehabilitation etc., of the dependant with disability.
Deduction under Section 17 for medical allowance
Your salary component also offers a medical allowance for your family members, including your spouse, children, dependant parents, and siblings. You can avail of income tax deduction of up to Rs. 3,750 per quarter or ₹Rs. 15,000 annually by submitting the medical bills.
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