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What is the tax benefit available on purchase of Health Insurance?


Health insurance tax benefit

It’s common knowledge that buying health insurance helps you to save tax. Under Section 80D of the Income Tax Act 1961, you can get a maximum tax benefit of Rs.15000 on health insurance premium paid. The exemption limits are as follows:

  • An individual can avail an annual deduction of Rs. 15000 from taxable income for health insurance premium paid for self and dependents. ‘Dependents,’ in this case, refers to spouse and children.
  • In the case of senior citizens (aged 56 years and above), the annual deduction from taxable income goes up to Rs. 20000.

 

But here’s a tidbit that might help you save more tax than you think:

  • If you are paying the premium for your parents’ health insurance policy, you can claim an additional tax benefit up to Rs.15000 under the provisions of Section 80D.
  • If your parents are senior citizens (aged 56 years and above), the benefit goes up to Rs. 20000.

 

Put together, the two facts listed above come down to this:

The health insurance premium that you pay for yourself, your dependents (spouse and children) and your parents, are all considered for tax benefit under Section 80D of the Income Tax Act 1961.

Therefore, you can claim a deduction up to Rs. 30000 on your taxable income, and if your parents are senior citizens, the deductible amount goes up to Rs. 35000.

 

However, there are a few conditions:

  • You cannot claim tax benefit on health insurance premium paid for your in-laws.
  • Proof of payment of premium has to be furnished, in order to avail the tax benefit.
  • Except cash, any mode of payment is acceptable for claiming tax benefit.
  • The health insurance premium must be paid from your taxable income of that year only if you want to claim a deduction. If you have paid the premium from your savings or from gifts of money received by you, then you will not be eligible to claim tax benefit under Section 80D.

To learn more about Bajaj Allianz Health Insurance products, click here – http://bajajallianz.com/Corp/health/health-insurance.jsp

 

Don’t buy health insurance blindly – calculate your needs and go for a policy that fulfills them best. Click here to learn more.

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Published on:23 Dec, 2010

By: | Tags: , , , , , , | Comments: 7

Comments

7 thoughts on “What is the tax benefit available on purchase of Health Insurance?

  1. Maheshmalkar Jitendra

    I need i Tax certificate urgently. How i can downlod from your site immediately. I have paid you Rs.11642/- vide cheque no 198247 of IDBI Bank Ltd Dt. 12.07.2012.

    Reply

    • CFU

      Dear Maheshmalkar,

      Thanks for writing to us.

      We request you to, kindly provide us the policy number and updated contact details so that we can do the needful.

      Thanks and Regards,
      Help and Support Team

  2. AJAY JAIN

    I have paid insurance premium for 3 year i.e. 2012-2015 of Rs.27435/- then under 80 D can i eligible for claim in next year also other then current year.

    Reply

    • CFU

      Dear AJAY,

      We request you to, kindly provide us the policy number and updated contact details so that we can do the needful.

      Thanks and Regards,
      Help and Support

    • BJAZsupport

      Dear Mr. Sandeep,
      Based on your discussion with our representative, we have mailed across the product details on your id for your perusal.

      Request you to check the same & let us know in case of any query.

      Looking forward to hearing from you.

      Best Regards,
      Help & Support Team

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