Health insurance is a growing field in every national economy as it has become a necessary decision rather than an optional one. But, the premium amount always puts a burden on a policy holder’s shoulder. Due to this burden, many people prefer to stay away from the cover of a health plan. Statistics reveal the same story. But people are unaware from that they can reduce the premium amount of their health insurance as mentioned by law. The government significantly plays an important role in cutting down the amount for your benefits.
Reduction in the premium amount is stated in Section 80D Deduction for A.Y 2016 – 17. The law provides you with the needed tax benefit to promote health insurance nationwide. This initiative is expected to bring a positive result in the form of increasing the number of policy holders.
Deduction of Super Senior Citizen
The senior citizens who are above 80 years and do not have any health insurance are eligible for deduction up to rupees 30,000 on their medical treatments and checkups in every financial year.
Deduction as per Section 80D in Income tax Act
You can claim a deduction of up to rupees 25, 000 for your medical insurance premium installment in every budgetary year. Such premium will include beneficiaries – you, your spouse, and dependant children. The deduction amount goes high up to 30, 000 rupees if either you or your spouse is a senior citizen.
Deduction on Preventive Healthcare Checkups
There is a deduction of rupees 5,000 for preventive health checkups annually. The amount is included in the total deduction of rupees 25,000 or 30,000. If you incur expenses for preventive health care, you can claim the deduction.
Deduction on health insurance premium for parents
The basic deduction of rupees 25,000 rupees is also applicable on the premium amount paid for your parents. If either one of them falls in the age tag of senior citizen, then the deduction will grow up to 30,000 rupees.
No tax benefit on cash payment
To get the tax benefit on your premium installment, you need to pay the amount through online banking, a cheque, draft, debit or credit card. The payment made by cash does not eligible for getting the stated tax benefit on your premium.
Deduction on Treatment of Special Illness
For the treatment of special illnesses like cancer, chronic renal failure and Parkinson infection, you can get a deduction up to Rs. 1, 40,000 on your medical expenses. You need to attach an endorsement from a specialist when you fill income tax forms.
Deduction for Treatment of a dependent with a disability
You can get a deduction up to 75,000 rupees for the expenses incurred in nursing, medical treatment, preservation, rehabilitation and more.
Besides the above-mentioned deduction criteria, there are still many fields that come under the deduction benefit as per the Government’s rule. To know more details, you must visit
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Published By
Subhra Bera
www.basic-healthinsurance.com
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