An individual premium medical insurance policy that has the coverage of at least more than 1 year then the insurance policy proposed its policyholder the required medical insurance tax deduction. This deduction shall be permissible on a balanced basis for the number of years for which the medical insurance coverage is provided to its policyholders, subject to the definite financial limit.
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This very year the union finance minister Arun Jaitley has projected to boost the limit of medical insurance tax deduction at the time of presenting the Budget of the year 2018, under Section 80D Income Tax Acts 1961. And especially for the senior citizens, the tax deduction is up to INR 30000 depending on the amount and time period of the medical insurance policy.
What is medical insurance tax deduction?
Who does not know about the term medical insurance policy in India? We all know about such policy’s existence. One of the most fascinating facilities of such kind of insurance policies is that medical insurance policy comes with a tax deduction. Unlike other insurance policies, medical insurance policy provides its policyholder monetary coverage and other families as the policy claims to do.
Medical insurance tax deduction headed for medical insurance policy does not only offer financial help just in case of medical crises but also cuts income tax charge. Medical insurance premium deduction deals with overload tax returns under Section 80D of the income tax Act 1961. This Act, 2018 gives a sophisticated supposition for medical premiums, especially for senior citizens. Here is how to get this medical insurance tax deduction easily and quickly.
The allowed medical insurance tax deduction is:
- Up to INR 20000 deduction limit for the family and another INR 20000 deduction limit for the parents if neither the person nor the parents are senior citizens.
- But in case of both the person and parents are senior citizens then the family will get INR 30000 deduction limit and the parents too will get INR 30000 deduction limit on the policy.
- In case only the parents are senior citizens but not the person then the person and family will get up to INR 25000 deduction limit for the family and up to INR 30000 deduction limit for the parents.
- In addition to these mentioned above deductions, one can also claim to get medical insurance tax deduction. One can claim such tax deduction only in case of paying their parents’ health insurance policy premium under the Section 80D in the income tax Act 1961.
What are the types of medical insurance tax deduction in India?
There are at least 4 different kinds of medical insurance tax deductions that one can claim under the Section 80D in the income tax Act 1961. These tax deductions are listed below:
- Firstly medical insurance tax deduction deals with precautionary medical check-up expenditures.
- Secondly, medical insurance tax deduction deals with the medical insurance payments paid especially for the medical insurance policy of your parents.
- Thirdly medical insurance tax deduction deals with the medical expenditures of super senior citizens ( super senior citizens are those who has completed the age 80)
- Fourthly medical insurance tax deduction deals with medical insurance payments that are especially paid for both you and your family, parents.
Keep yourself updated with this information and stay healthy.
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