Best health Insurance for Tax Purposes

Health insurance plans allow you to enjoy multiple benefits within just 1 payment. Not only does it provide you with financial protection but also a whole range of coverage benefits, but also major health insurance tax benefit, which is reaped once the premium has been paid, which is under Section 80D of the Income Tax Act, 1961. Such health insurance tax exemptions, however, will not be available if the policy is purchased only for yourself, but instead when you purchase them for your kids, parents, or spouse as well. To know the best health insurance policy that can help you save taxes under 80D & is health insurance tax-deductible in all areas, read this post.

What Tax Benefits Can You Avail of From Section 80D?

If you are looking to know more about health insurance text benefit 80D, let us first help you understand what 80D entails. Section 80D basically lowers the tax liability by reducing all your taxable income, which means that the health insurance premium that you pay for yourself and for others, will easily be subtracted from the taxable income. However, that won't be deducted from the tax amounts that you’ll have to pay. Not just that, the tax benefits offered by 80D will also have to depend on the person who has been insured. There are 3 major ways in which section 80D works:

With section 80D, you can avail of a medical insurance tax benefit that gives you a deduction of Rs 25,000 under 80D on self, dependent children, or spouse. Another health insurance tax benefit can be attained within Rs 25,000 if your parents are less than 60 years, which takes your complete deduction within 50,000. If your parents are above 60, then the total deduction you get is 50,000 and the claim of the total deduction is 75,000, out of which 25,000 will be on the premium that’s paid for yourself, your spouse, and your dependent children.

If both the parents and the taxpayer are above age 60, then the maximum amount of deduction that’s available will go within 1 lakh.

Are There Any Payment Restrictions?

You can enjoy all your tax benefits only when you make your health insurance payments through any non-cash model like demand draft, cheque, debit, credit card, or online banking. Such rules are not applicable for preventive health check-ups. However, you can still avail of health insurance deduction in income tax.

Other Benefits Offered By Section 80D

Apart from other healthcare plans offered by Aditya Birla Health Insurance, you should also avail of regular check-ups to understand your health conditions and catch any early signs of health issues. Section 80D also offers you major tax-saving options for preventive health check-ups as well. If any family member of yours has gone through preventive health check-ups, under Aditya Birla Health Insurance, they can get tax rebates within 5,000 easily.

Overall, health insurance is one of the best ways to save/reduce taxes, protect your savings and prevent your hard-earned money from being wasted on any health care expenses. They also bring down tax liability and allow you to deduct approximately within 1 lakh, under the section 80D of Income Tax Act, 1961.