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Section 80D: Tax Saving Investment Options in Healthcare

  • Highlights

  • Health insurance covers you against unforeseen medical situations and offers tax benefits

  • Tax deductions on health insurance under Section 80D

  • Tax-saving options for preventive health check-ups

  • Senior citizens can get a higher tax deduction

With increasing cost of medical expenses, having a health insurance has become almost mandatory. Without insurance, getting medical treatment is very difficult and expensive. Moreover, insurance not only brings in protection but also helps you save tax under Section 80D.

Section 80D and health insurance

The Income Tax Act of 1961 has provisions for tax deductions on health insurance under Section 80D. Purchasing health plans for family members and yourself, gives you the option to claim anything between Rs. 25,000 to Rs. 100,000, depending on the family members covered.

Section 80D provides a tax benefit on premiums you pay towards health plans for yourself, your spouse, your children, and your parents. Listed below are the benefits:

- A maximum of Rs.25,000 for self, spouse and dependent children
- An additional Rs.25,000 for parents under the age of 60.
- An additional Rs.50,000 for senior citizen parents
- A maximum of Rs.100,000 for senior citizen self and senior citizen parents

Prevention is better than cure

Apart from healthcare plans, regular health check-ups are vital to understanding how your body is functioning and to catch issues early on. Section 80D also offers tax-saving options for preventive health check-ups. If you or a family member has undergone a preventive health check-up, you can get an extra rebate of Rs.5,000.

Features of a Health Insurance

This scheme was introduced to encourage people to get themselves checked from time to time. Early diagnosis and prevention can save you a lot of money in treatment costs, along with saving your life.

Additional Read: Health Insurance Plans Available In India

Bigger savings for senior citizens

Insurance providers rarely want to sell policies to senior citizens due to the high risk involved, and the plans they sell are expensive. Keeping this in mind, Section 80D has additional provisions for senior citizens. You get a higher upper limit on your tax deduction for covering senior citizen parents. Moreover, if you yourself are a senior citizen who has dependent senior citizen parents, your tax deductions will be even higher.

Thus, you can enjoy many tax benefits by protecting your health.

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