Updated on : Sep 23, - PM. Medical emergencies always take us by surprise. It is always better to be safe than sorry, and it is no different when it comes to medical insurance.
The majority of the population in India are not covered under health insurance and depend on their savings or borrowing in times of medical emergencies. A must in your investment portfolio, the government encourages everyone to buy medical insurance and allows you to avail tax deductions on it under Section 80D.
Every individual or HUF can claim a deduction from their total income for medical insurance premium paid in any given year under section 80D. This deduction is also available for top-up health plans and critical illness plans. The deduction benefit is available not only for a health insurance plan for self but one can also take the advantage of buying the policy to cover spouse, or your dependent children or parent. The best part is that it is over and above the deductions claimed under section 80C.
Deduction for medical insurance premium as well as medical expenses for senior citizens is allowed to the Individual or HUF category of taxpayers only. Any other entity cannot claim this deduction, For example, a Company or a firm cannot claim deduction under this section. An individual or HUF can claim deduction under section 80D for the below-mentioned payments:.
The amount of deduction allowed under section 80Dm is Rs in a financial year. In the case of senior citizens, the deduction limit allowed is Rs. The below table captures the amount of deduction currently available FY and FY to an individual taxpayer under various scenarios:. You can now attach the supporting proofs and documents so that the IT department can verify your deduction.
Premiums paid in cash are not eligible for tax deductions. Also, you need to have the supporting documents and proofs to claim the deduction successfully. The tax deductions on health insurance premiums can only be claimed for a particular financial year. No deductions can be claimed for premiums that you have already paid in the last financial year or will be paying in the following financial year. You are eligible for claiming the tax benefits as per the limits and conditions discussed above.
Always file your ITR at least a few weeks before the due date to avoid the last-minute rush. This will ensure that you have adequate time to provide accurate details of your health insurance and claim the applicable deductions in a hassle-free manner. Find out the detailed information on the importance of health insurance plans! Download Our App:. Before claiming for tax benefits on health insurance premiums, you need to seek clarity on the following points: Invest in Right Health Insurance Policy and Save taxes Who can claim tax deductions on health insurance?
What is the maximum tax deduction limit? ET Engage. ET Secure IT. Tax How to file ITR. Tax Saving. ITR Forms. Income Tax Refund. Tax Exemption Limit. Income Tax Slabs. Insure Life Insurance. Health Insurance. Motor Insurance. Other Risk Covers. Personal Finance News. Mutual Funds. Tax-deductible medical costs include payments to doctors, dentists, surgeons, inpatient hospital care, acupuncture treatments, participation in weight-loss programs, and more.
The Internal Revenue Service has a list of examples of deductible medical expenses on its website. Examples of non-tax-deductible medical expenses include funeral or burial expenses, nonprescription medicines, toothpaste, toiletries, cosmetics, and more. Additionally, self-employed people may deduct premiums even if they don't exceed 7. A qualified medical expense is generally one that can also be deducted as a medical expense on a yearly income tax return, such as doctors' visits, lab tests, and hospital stays.
It depends. You can claim only those qualified medical expenses that are greater than 7. The amount you may deduct is calculated on Schedule A Form If you are enrolled in an employee-sponsored plan, your premiums are likely already tax-advantaged.
However, in some limited circumstances, you may be able to claim a tax deduction when you purchase your own insurance plan. For example, you can deduct the amount you spent on your health insurance premiums if your total healthcare costs exceed 7. Kaiser Family Foundation. Internal Revenue Service. The New York Times. Health Insurance. Retirement Savings Accounts. Your Privacy Rights.
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