- Health insurance also takes care of tax savings along with health and can save income tax up to ₹ 1 lakh
Health Insurance Tax Benefits: Health insurance ie health insurance is not only your companion of trouble but also helps in saving tax. Know how you can save tax from Rs 25 thousand to Rs 1 lakh through health insurance.
Income Tax rebate from Health Insurance:
Health insurance means health insurance has become very important for everyone. Health insurance is not only your companion in difficult times, but it is also very effective in saving income tax. On the other hand, if you are paying the premium for your parent’s health insurance as well, then you can get an additional exemption of up to Rs 50,000 in income tax annually. At the same time, senior citizens can get tax exemption of up to one lakh rupees through health insurance.
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25 thousand rupees discount
Under Section 80D of the Income Tax Act, if the taxpayer pays the premium for health insurance, then he gets a tax exemption. The scope of the exemption is from Rs 25 thousand to Rs one lakh in a financial year. If the taxpayer has paid a health insurance premium of Rs 25,000 in a year and is less than 60 years, then he gets a rebate. On the other hand, if the taxpayer is paying the premium for the health insurance of his parents and is below the age of 60 years, then he gets an additional exemption of Rs 25,000.
50 thousand rupees to one lakh rupees discount
If your parents are senior citizens and you are paying the premium for their health insurance, then you can get a rebate of Rs 50,000 in income tax. However, let us tell you that you and your parents should have separate health insurance. If your parents and your insurance are the same then you will not get this discount. On the other hand, if the taxpayer is a senior citizen, then the exemption of Rs 25 thousand can reach up to Rs one lakh.
Pay through
Under Section 80D, a senior citizen paying the premium for his parents’ health insurance can save Rs 50,000 on his own health insurance and Rs 50,000 on his parent’s insurance. Let us tell you that if you are paying cash policy then you will not get relief under section 80D. In such a situation, to avail of the tax benefit under section 80D, the premium has to be paid only through certain banking modes such as demand draft, cheque, debit card, or net banking.
