Your Money: Know tax sops on health insurance, medical costs
February 1, 2021 12:45 AM
Adequate health insurance plan will not only secure you and your family during unforeseen circumstances, but can also help save tax
An adequate health insurance plan will not only secure you and your family during unforeseen circumstances, but it is also the wisest way to save tax.
By Pankaj Verma
It is always this time of the year, i.e., the last quarter of the financial year when many individuals are looking for sound advice on financial planning. One significant option that most financial advisors will definitely suggest is health insurance. An adequate health insurance plan will not only secure you and your family during unforeseen circumstances, but it is also the wisest way to save tax.
Deduction under Section 80D You can claim a deduction of up to Rs 25,000 per budgetary year for medical insurance premium installments. The premium should be for you, your spouse, and dependent children. On the other hand, if there is a chance that either you or your spouse is a senior citizen (60 years or above) the limit goes up to Rs 50,000.
Medical insurance premium paid for guardians additionally qualifies for deduction up to Rs 25,000 every year. If your father or mother or either of them is a senior citizen, the maximum limit goes up to Rs 30,000 a year.
You get deduction on preventive health checkups annually. You can avail up to Rs 5,000 for the cost incurred for preventive health checkups.
Super senior citizens If your father is a super senior citizen and mother is a senior citizen with no insurance, you can claim a tax deduction of Rs 30,000 towards medical treatment for guardians, medical coverage and registration of both guardians.
Deduction under 80DDB You can claim deduction up to Rs 1.4 lakh (Rs 60,000 for senior citizen and Rs 80,000 for super senior citizen) for medical expenses incurred for determined ailments. For example, cancer, chronic illness, renal failure, etc. It can be claimed for spouse, siblings, guardians and children.
Deduction under 80DD You can claim the benefit up to Rs 75,000 based on the expense incurred for nursing, training, medical treatment, preservation, and rehabilitation for a dependent with special abilities disability (up to Rs 1.25 lakh).
Deduction under 80U In case of a family member or self with special abilities, you can claim benefits of Rs 75,000. In case of severeness of the disability, it can be claimed up to Rs 1.25 lakh.
The writer is head, underwriting, SBI General Insurance