Future Generali
search

How health insurance can help you save tax

Investing in health insurance can help taxpayers reduce their tax liability. Section 80D of the Income Tax Act offers tax benefits on payments related to purchasing and renewal of health insurance plans. Here’s a closer look at the tax benefits of health insurance.

Premium paid on health insurance for yourself and your family
Section 80D provides that when you invest in health insurance for yourself or your family members, the premium paid can be deducted from your total income. This, in turn, reduces your tax liability. Here are the other key features of the tax benefits of health insurance premiums.

  • The premium can be paid to purchase the insurance policy or to keep it active.
  • Only the amount paid in the relevant financial year can be deducted.
  • For section 80D, the family includes spouse and children.
  • The maximum amount of premium that can be deducted is ₹ 25,000.
  • If you’re a senior citizen, this limit goes up to ₹ 50,000.

Premium paid on health insurance for your parents
The tax benefits of health insurance also extend to the premiums paid for insuring your parents’ health. You can claim the premiums charged and paid on your parents’ health insurance plans as a deduction from your total income. Other essential features of this tax benefit are explained below:

  • The deduction allowed for the premium paid on your parents’ health insurance is in addition to the deduction allowed for the premium paid on your own medical insurance plan.
  • Here too, the premium needs to be paid before you can claim it as a deduction.
  • The maximum amount deductible is ₹ 25,000.
  • If your parent is a senior citizen, this limit goes up to ₹ 50,000.

A summary of the tax benefits of health insurance
To better understand how the provisions of section 80D help you save tax, here’s a review.

Scenario Age of assessee Age of parents Maximum deductible  premium (paid for self/family) Maximum deductible  premium (paid for parents) Total deduction Under Section 80D
Premium paid for self/family only Below 60 NA NA ₹ 25,000 ₹ 25,000
Premium paid for self/family and for parents Below 60 Below 60 ₹ 25,000 ₹ 25,000 ₹ 50,000
Premium paid for self/family and for parents Below 60 Above 60 ₹ 25,000 ₹ 50,000 ₹ 75,000
Premium paid for self/family and for parents Above 60 Above 60 ₹ 50,000 ₹ 50,000 ₹ 100,000

Read Next

How to save tax on long-term capital gains?

How to save tax on long-term capital gains?

Long-term capital gains are chargeable to income tax @ 20%. There is no minimum exemption limit prescribed so …
Read more.

Tax Benefits

Go Beyond 80C Tax Benefits. Turn into a Smart Tax Saver.

Go beyond 80C tax benefits to become a smart tax saver. Here is a complete list of tax-free deductions availab…
Read more.

image

What is covered under 'Income from other Sources'?

The last head of Income Tax Act is - 'Income from other sources'. Find out the list of the receipts that fall …
Read more.

image

5 things to keep in mind while choosing the right tax saving plan by Future Generali India Life Insurance

To help you meet your financial goals, it is important to have a personal financial planning process in place.…
Read more.

Tax Benefits

Go Beyond 80C Tax Benefits. Turn into a Smart Tax Saver.

Go beyond 80C tax benefits to become a smart tax saver. Here is a complete list of tax-free deductions availab…
Read more.