Insurance is need, not luxury. You need insurance...

SAVE TAX extra upto 1,00,000 using HEALTH PLAN

Section 80D provides for tax deduction from the total taxable income for the payment (by any mode other than cash) of medical insurance premium paid by an Individual or a HUF. This tax deduction is available over and above the deduction of Rs. 1,50,000 under Sec. 80C.

save TAX save WEALTH

Under Section 80D, tax payers can avail tax exemptions for health insurance premiums of self, family and parents and for expenses incurred in preventive health check-ups.

upto 100,000 extra tax saving

  1. अपने परिवार (उम्र 59 वर्ष) के स्वास्थ बीमा पे पाएं 25 हजार तक का अतिरिक्त टैक्स बचत लाभ।
  2. अपने परिवार (उम्र 61 वर्ष) के स्वास्थ बीमा पे पाएं 50 हजार तक का अतिरिक्त टैक्स बचत लाभ।
  3. अपने माता पिता (उम्र 61 वर्ष) के स्वास्थ बीमा पे पाएं 50 हजार तक का अतिरिक्त टैक्स बचत लाभ।
  4. अपने परिवार व माता पिता (उम्र 61 वर्ष) के स्वास्थ बीमा पे पाएं 1 लाख तक का अतिरिक्त टैक्स बचत लाभ।

Applicability of Section 80D
Every individual or HUF can claim a deduction under Section 80D for their medical insurance which is taken from their total income in any given year. 

Not only can you take benefit by purchasing a health plan for yourself but also you can take the benefit by purchasing the policy to insure your spouse, or your dependent children or parent.

This is over & above the deductions claimed under section 80C/CCC/CCD.

An individual can claim a deduction of up to Rs 25,000 for the insurance of self, spouse, and dependent children. An additional deduction for the insurance of parents is available to the extent of Rs 25,000 if they are less than 60 years of age, or Rs 50,000 (as per the Budget 2018) if your parents are aged above 60.

If both the taxpayer and the parent whom the medical covers have been taken for are aged more than 60 years, the maximum deduction that can be availed under this section is to the extent of Rs.100,000.

The below table captures the quantum of deduction available to an individual taxpayer under various scenarios:

Things to keep in mind before investing

  • Contribution towards health insurance plan has to made to a scheme as specified by the Central Govt./ approved by IRDA.
  • Payment should not be made in cash for taking tax benefit.
  • Meaning of Senior citizen- Sr. Citizen means an individual resident in India who is of the age of 60 yrs or more during the relevant financial year.
  • Premium paid towards a brother, sister, grandparents, aunts, uncles or any other relative cannot be claimed as a deduction for taking tax benefit.
  • Premium paid on behalf of working children cannot be taken for tax benefit.
  • In the case of part payment by you and a parent, both of you can claim a deduction to the extent paid by each.
  • The deduction has to be taken without showing the Service Tax and Cess portion from the premium amount.
  • Group Health Insurance premium provided by the company is not eligible for deduction.

Even if your parents are adequately covered by your employer, the cover provided would cease to exist post-retirement or you being fired or due to change in expenditure policy by employer. Considering the current rate of medical inflation in India, adequate health insurance has become a must-have for each and every individual, and if the individual happens to be your parent, the need to buy a senior citizen health insurance plan becomes all the more important.

REMEBER: your employer is not bound to cover your parents health expenses. know more