“Healthy citizens are the greatest asset any country can have.”
These are the words of the great British Statesman and former Prime Minister of England, Winston Churchill. You might not know the value of your health, but the Government certainly does. The Government is doing all it can, to make sure, you and other citizens, enjoy a happy healthy life. If you avail a health insurance plan for you and family, the Government gives you tax benefits. Is it not your responsibility to make sure you and your family are well protected, with a good health insurance plan? You also get tax benefits for your effort.
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Fall sick and land in hospital? The medical bills will kill you. Want to avoid this dangerous situation? Just pay the health insurance premium to an insurer and avail a health insurance plan, for you and family. You can claim a tax deduction under Section 80D of the income tax act, on the premiums paid for a health insurance policy. You get this tax benefit, for the health insurance premiums, paid for yourself, spouse/children and even parents.
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You might not be aware of this benefit; you get under Section 80D. You can claim a tax deduction on the expense you incur, on a health check up. You are allowed a maximum deduction of INR 5,000. You get this benefit on the health check up for yourself, family and parents.
Remember: This tax deduction of INR 5,000 is an aggregate deduction. You and your father both go for a health check up. The bill of your health check up is INR 10,000. You can claim a maximum tax deduction of only INR 5,000.
You get a tax deduction on the health insurance premium paid for:
Let’s understand Section 80D with a simple example. Ravi aged 61 years, works for the government sector. His father is 86 years. Ravi pays a health insurance premium of INR 29,000 a year, for a good health insurance policy for himself. He has availed a health insurance plan for his father, paying a premium of INR 35,000 a year. How much can Ravi claim as a tax deduction?
Ravi is a senior citizen and can claim a tax deduction on the total premium he pays (INR 29,000), on the health insurance plan. He can claim a tax deduction of only INR 30,000 a year, on the health insurance premium paid for his father, even though Ravi actually pays a health insurance premium of INR 35,000 a year. This is because the limit under Section 80D for senior citizens, is just INR 30,000.
Ravi can claim a total tax deduction of INR 59,000 a year, on the health insurance premium he pays for himself + father, under Section 80D of the income tax act.
“Physical fitness is not only one of the most important keys to a healthy body, it is the basis of dynamic and creative intellectual activity.”
- John F. Kennedy
Yes, maintaining a healthy body is very important. Yet, disease can strike at any time. Be prepared with health insurance. Also enjoy the tax benefits which come with your health insurance plan. Be Wise, Get Rich.
Mr. C S Sudheer is the founder and CEO of IndianMoney.com – India’s largest Financial Education Company. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
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