Here’s how you can save income tax with health insurance

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Published: January 9, 2017 10:57:08 AM

Health insurance may not be a part of the investment but should be an essential part of your financial planning. Why pay hefty medical bills when you can go cashless at hospitals? Health insurance policies come up with various other benefits, including income tax benefit, which will help you save tax.

save income tax, financial planning, hospitals,Health insurance,tax deductions, Section 80D of the I-T Act 1961, self, spouse, and children & parents,Max Bupa, Religare Health Insurance, Apollo Munich, Royal Sundaram, Bajaj Allianz, HDFC Ergo, Cigna TTK, room rent, no claim bonus, pre-existing disease coverage, restoration, co-payment, day care treatment, health check up and ambulance coverHealth insurance is an important solution for saving tax, where you can enjoy tax deductions under Section 80D of the I-T Act 1961.

Health insurance may not be a part of the investment but should be an essential part of your financial planning. Why pay hefty medical bills when you can go cashless at hospitals? Health insurance policies come up with various other benefits, including income tax benefit, which will help you save tax.

Health insurance is an important solution for saving tax, where you can enjoy tax deductions under Section 80D of the I-T Act 1961. According to this section, deductions are offered towards policies on self, spouse, and children & parents, whether dependent or not.

Under this section, deduction of up to Rs 60,000 can be claimed in respect of premium paid by any mode (excluding cash option) towards health insurance policy offered through various general insurance companies. However, payments made against health checkups can be done through any mode, including cash.
Let us understand the income tax savings available on the case to case basis.

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If the age of any of your family members is less than 60 years, then you can claim deductions up to Rs.25000 in the case of self, spouse, and children. In the case of parents, whether they are dependent or not, you can claim additional deductions of Rs.25000. The total deductions in this scenario will go up to Rs.50000.

If the age of the eldest family member is less than 60years and the parents have attained the age of 60 years or more, then you can claim deductions up to Rs.25000 in the case of self, spouse, and children. In the case of parents, whether they are dependent or not, you can claim additional deductions of Rs.30000. The total deductions in this scenario will go up to Rs.55000.

If the age of the eldest family member is 60years and the parents too are above the age of 60 years, then you can claim deductions up to Rs.30000 in the case of self, spouse and children. In the case of parents, whether they are dependent or not, you can claim additional deductions of Rs.30000. The total deductions in this scenario will go up to Rs.60000.

There are various general insurance companies like Max Bupa, Religare Health Insurance, Apollo Munich, Royal Sundaram, Bajaj Allianz, HDFC Ergo, Cigna TTK from which you can purchase health insurance either online or by visiting their websites.

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The companies listed above are ranked in term of ‘ratings’ only. The rating factor depends on room rent, no claim bonus, pre-existing disease coverage, restoration, co-payment, day care treatment, health check up and ambulance cover etc.

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