80D Benefits on Medical Insurance
- 2 min read
Many of us buy health insurance policies for securing health and ensure complete protection against medical expenses. However, health insurance policies also help in saving tax up to INR 55,000. This indicates that health insurance policies act as a crucial tool to save tax.
Check out top tax-saving policies here.
Let’s understand it in a bit detail on how does the section 80D works?
All about Section 80D
It is usually referred to as Deduction on Section 80D in Income Tax Act (Tax deduction based on Health Insurance Premiums Paid) You are allowed to claim a deduction up to INR 55,000 per budgetary year for medical insurance premium installments. The premium should be for you, your spouse, and dependent children. The deduction section of 80D for medical insurance is beneficial indeed.
80D section deduction helps in saving tax every year, higher the plan Sum Insured, higher the premium amount and big savings on tax. Senior citizens and super senior citizens enjoy a much higher tax savings.
| Persons Covered | Exemption Limit | Health Check-Up Exemption | Total |
| Self and family | INR 25,000 | INR 5,000 | INR 25,000 |
| Self and family + parents | INR (25,000 + 25,000) = INR 50,000 | INR 5,000 | INR 55,000 |
| Self and family + senior citizen parents | INR (25,000 + 30,000) = INR 55,000 | INR 5,000 | INR 60,000 |
| Self (senior citizen) and family + senior citizen parents | INR (30,000 + 30,000) = INR 60,000 | INR 5,000 | INR 65,000 |
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Sandip Raichura
Executive Director, CEO Retail and Distribution
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
