Everything you buy today or every service you use is in some way taxable. Tax is an important way in which the government can acquire funds from the people for the smooth working of the nation and use it towards the growth and development of the nation. However, as a person who is earning, you may want to reduce this tax and this could be done in some ways to promote some policy which government plan to enhance. One way is getting the health insurance by which you can maximise the benefits of the mediclaim policy which you have. The benefits of good health insurance are not just limited to providing exceptional health coverage but giving additional saving on the taxable income of the person.
Saving Tax on the Premium Pay-out
Now if you have a
health insurance policy
you can get a deduction of up to 25,000 annually which is subject to the premium amount you are paying and the cover that you have. This coverage can be availed by your spouse and dependent children as well. This limit increases to up to 50,000 for the senior citizen plan if you and your spouse are over 60 years above. The details of these savings could be
- Health Check-ups
There could be some saving on the income tax which depends on preventive health check-up you take during the term of your policy. The limit, in this case, is limited to 25,000 for people under 60 years and 30,000 for senior citizens. Apart from this, you can also claim an additional benefit of 5000 for preventive health check-ups per year.
- Policy or parents
Under the income tax act, you can avail benefits if the premium you are paying is for the insurance for your parents. This allows you a deduction for up to 50,000 per year. This saving depends on the premium you are paying.
- No Tax Benefit on Cash Payment
This is a tax benefit which is allowed if the transaction is made through certain banking mode such as demand drafts, cheques. This will be mentioned in the document and can get a clearer view by the insurer when you are getting the policy.
Eligibility to get Income Tax Benefit
You will get the benefit of health insurance on the tax annually. If you have floater plan that covers all of your family then your tax liability decreases. The members which can benefit from this policy is policyholder, spouse, children and dependent children. There are different terms and condition for a person with a disability and a lot of sections for this has been created under Section 80 of income tax benefit.
All of the saving depends on whether the insurance plan is individual, floater, is for your parent, children, what is policy premium, the coverage and a lot of other factors. You can get
health insurance on EMI
and save a lot when filing annual tax returns which will allow you to get the privilege thus all in all having health insurance is win-win for the insured person.