In India, the majority of the people does not have health insurance and must rely on their savings or borrowing in the event of a medical emergency. Medical insurance is a must-have in your financial portfolio, since the government encourages everyone to acquire it and provides tax benefits under Section 80D.
What does Section 80D entail?
Section 80D allows any person or HUF to deduct medical insurance premiums paid in any given year from their total income. Top-up health insurance and critical sickness policies are also eligible for this deduction.
The advantage is accessible not just for purchasing a health insurance coverage for yourself, but also for purchasing a policy to cover your spouse, dependent children, or parents
The nicest aspect is that it goes above and beyond the Section 80C deductions.
Who is qualified for a Section 80D deduction?
Individuals and HUF taxpayers are the only ones who can deduct medical insurance premiums and medical expenditures for older persons.
Individual or HUF taxpayers can get insurance for:
Children who are reliant on their parents
Parents
This deduction is not available to any other organisation. A business or a firm, for example, cannot claim a deduction under this clause.
Payments that qualify for a Section 80D deduction
Section 80D allows an individual or a HUF to claim a deduction for the following payments:
A medical insurance premium paid in any form other than cash for oneself, one's spouse, one's children, or one's dependant parents.
Expenses expended as a result of a preventative health check-up
Medical costs expended on the health of a senior adult (60 years or older) who is not covered by a health insurance plan.
Contribution to the Central Government's health-care plan
Section 80D allows for a deduction for:
In a financial year, the deduction permitted under Section 80Dm is Rs 25,000. The maximum deduction permitted for older persons is Rs 50,000.
Individual:
For self-insurance, spouse insurance, and dependent children insurance, a person can claim a deduction of up to Rs 25,000.
If your parents are under the age of 60, an additional/separate deduction of Rs 25,000 is available, and if they are above 60, an additional/separate deduction of Rs 50,000 is allowed.
If both the taxpayer and his or her parents are over 60 years old and have medical insurance, the maximum deduction available under this clause is Rs 1,00,000.
Senior citizens above the age of 60 are classified as elderly and extremely senior citizens.
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