Respect Senior Care Rider: 9152007550 (Missed call)
Sales: 1800-209-0144| Service: 1800-209-5858 Service Chat: +91 75072 45858
Thank you for visiting our website.
For any assistance please call on 1800-209-0144
A health insurance policy not only keeps you guarded against medical emergencies, but also offers certain tax benefits. Section 80D of the Income Tax Act of 1961 allows you to avail of certain deductions from your taxable income for the premium paid towards your medical insurance plan.
Section 80D offers tax exemptions to individuals as well as Hindu Undivided Families (HUF) from the total taxable income for the health insurance premium payment. An individual can avail of these tax benefits if they are paying health insurance premiums for self, spouse, dependent parents, or children. *
Under Section 80D, if an individual is paying health insurance premiums for self as well as his/her family, they can claim a tax deduction of up to ₹ 25,000 from the taxable income. Additionally, the policyholder can get an extra tax exemption of ₹ 25,000 if the premium is paid for parents who are less than 60 years of age. However, if the taxpayer’s parents are senior citizens, i.e., above 60 years of age, the tax deduction for parents is available up to ₹ 50,000. **
For taxpayers above the age of 60, the cumulative tax benefits can be as high as ₹ 1,00,000. The breakdown is such that the senior citizen policyholder is entitled to tax deductions of up to ₹ 50,000 for paying health insurance premiums for self, spouse, and dependent children, whereas an additional deduction of ₹ 50,000 can be availed of against the premiums paid for their parents.
The expenses made on preventive health care check-ups are also eligible for tax deductions, up to a limit of ₹ 5,000. This tax benefit is well within the overall limit of ₹25000 or ₹ 50,000, as applicable. **
Health insurance, hence, should form an extremely vital component of one’s financial planning. Apart from providing financial security against medical contingencies, the extra edge that it offers in terms of tax benefits makes it one of the most profitable avenues to include in your financial portfolio.
Explore more Health Insurance Features.
Share Your Details
Section 80D of the Income Tax Act allows the premiums paid towards health insurance policies and the expenses incurred towards preventive health check-up as a deduction from your income tax return. **
The deduction under Section 80D can be claimed by an individual and a Hindu Undivided Family (HUF) from their taxable income. Thus, the medical insurance premiums paid for self, spouse, dependent children, and parents can be claimed as a deduction along with the expenses incurred towards preventive health check-up. **
Here’s a table that summarises the deduction available under Section 80D:
Category |
Premium paid for and the maximum deduction available |
Aggregate deduction as per Section 80D |
|
Policyholder, spouse and children |
Parents, whether dependent or not |
||
All beneficiaries not classified as senior citizens |
Up to ₹ 25,000 |
Up to ₹ 25,000 |
₹ 50,000 |
Policyholder, spouse, and children are below 60 years, whereas parents are over the age of 60 years |
Up to ₹ 25,000 |
Up to ₹ 50,000 |
₹ 75,000 |
Either the policyholder or their spouse is a senior citizen and parents are also senior citizens |
Up to ₹ 50,000 |
Up to ₹ 50,000 |
₹ 1,00,000 |
While the above points describe the coverage, it is essential to be aware of the exclusions too:
● No deduction is available for payment of premiums in cash. However, the payments for preventive health check-up by cash is available as a deduction. *
● The payment of premiums for non-dependent children, siblings, grandparents, or other relatives, cannot be availed of as a deduction. *
● No deduction is available for the premiums paid for a group health insurance policy on behalf of the member of the group. For instance, you will not be able to claim the deduction of the premium of your group insurance plan paid by your employer. *
* Standard T&C Apply
** Tax benefits are subject to change in prevalent tax laws.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
Written By: Bajaj Allianz - Updated: 25thApril 2024
Disclaimer
I hereby authorize Bajaj Allianz General Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back at a convenient time. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) under either Fully or Partially Blocked category, any call made or SMS sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business. Furthermore, I understand that these calls will be recorded & monitored for quality & training purposes, and may be made available to me if required.
Please enter valid quote reference ID