Today health care services are the most expensive industry. It is nearly impossible to stay healthy and fit in the polluted environment that gives birth to the number of health problems in such case we need to live a safe and secure life. This is one of the major reasons for buying Health insurance, but we cannot ignore this aspect that is one of the best ways to tax investment option of the current trend. Life can never be peaceful when the person loses either the health or the wealth. Health insurance has multiple benefits for example it helps you financially at the time of medical emergency and also have tax benefits under section 80D of income tax on the premium paid.
Tax saving section 80 D of Income Tax Act, 1961 is the key benefit of investing money in health insurance. It is subject to a limit of Rs. 15, 000 if the policyholder is below the age of 60 years. The maximum amount of deduction for premium paid goes up to Rs. 20, 000 if the individual is above the age of 60 years.
Read below tax benefits of health insurance available for specific medical expenses that incurred in the treatment.
1.) Premium Paid for Health insurance
The policyholder can claim deduction up to Rs. 25,000 for the premium paid for medical insurance policy (bought for self, spouse and dependent children) in the financial year. In case, the person or their spouse is above the age of 60 years the deduction limit can be increased to 30,000 per financial year. For preventive health checkup, it provides claim deduction up to Rs. 5,000.
2.) Premium paid for health insurance of parents
Premium paid for health insurance that is bought for your parents is also eligible for deduction up to Rs. 25,000 per financial year. It also provides a deduction up to Rs. 5000 for preventive health check-ups. The payment for premium should not be done in cash. It should be done through banking channel. However, these tax benefits are not eligible if the premium is paid for health insurance that is bought for your siblings.
3.) Medical expenses for uninsured very senior citizen
If the person is of 80 years or above and do not have any health insurance he or she can avail deduction for medical expenses up to Rs. 30,000 per financial year. Preventive health checkups are also eligible to provide tax benefits up to Rs. 5,000 per financial year.
4.) Specified Illness Treatment cost
The policyholder can claim deduction up to Rs. 40,000 per financial year for medical expenses that incurred in the treatment of specified illness. It can be claimed for spouse, parents, children and siblings.
In case, the amount is spent for the treatment of senior citizen who is 60 years and above 8- years you can claim the deduction amount up to Rs. 60,000 and 80,000 respectively per financial year. It is not eligible in the case when you have already claimed the reimbursement under any health insurance policy. There are some important documents required to claim for this purpose.
5.) Deduction for treatment of Disability
In case, a person is bearing the cost of treatment of a dependent who is disabled he or she can claim deduction up to Rs. 75,000 per financial year for the same under section 80DD. There are several expenses which are related to the disable person for example nursing, training and rehabilitation. The dependent can be the spouse, children, parents or siblings.
6.) Deduction for the policyholder disability
In case, the person who is paying the tax is disabled he can claim for additional deduction up to Rs. 75,000 per financial year under section 80U. This limit is increased up to Rs. 1.25 lacs per financial year in case of severe disability.