Wish to have your cake and eat it too, then health insurance is the way to go. The health cover not just offers protection when unforeseen hospitalization strikes, but also offers tax benefits upto Rs 55,000. Let us understand how this booty can be gained.
Have you been worried about health insurance costs shooting up each day? Is the deteriorating health of your parents forcing you to live frugally and save for the long hospital bills? There is an easy way out to these problems.
Seeking a health insurance cover would not just help you get rid of the hospitalization burden, but also slash your taxes. The Finance Minister Arun Jaitley just sweetened the deal a tad bit more for health insurance seekers during the Budget 2015.
The limit for deduction of health insurance premium has been increased from Rs 10,000 to Rs 25,000 (Rs 15,000 for FY 2014-15) for individuals. Those in their silvers can claim a tax benefit of upto Rs 30,000 (Rs 20,000 for FY 2014-15). So, a person paying medical premium for self and parents can claim upto a maximum of Rs 55,000 (25,000 self and 30,000 senior citizen parents) under Section 80 D.
So far there wasn’t any deduction available for the very senior citizens left out of the insurance ambit. But medical expenses still run high, inspite of low coverage for these octogenarians. Most health and general insurance companies offer a health insurance cover only for those between 18-75 years or 80-year olds.
These very senior citizens, who are left out of the health insurance umbrella, have found a special place under the Union Budget 2015. Starting financial year 2015-16, senior citizens above the age of 80 years are allowed to claim a deduction of upto Rs 30,000 spent on medical treatment.
If you have been paying a lower premium on your health insurance cover thanks to the fitness and young dependents, then there is a reason to cheer to. The next time you head for a health check-up, preserve the bills and details as these expenses on health tests too can be claimed for deduction under section 80 D.
Not just the bills for the health tests you have undergone, but the preventive medical tests conducted for your spouse, dependent children and parents during a year can be claimed under Section 80 D upto a maximum of Rs 5,000. However, this deduction is available within the overall ceiling of Rs 25,000 (15,000 for FY 2014-15), which includes medical insurance.
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