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Section 80D Deduction | Health Insurance Tax Benefit | Save Tax under Section 80D - YouTube
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If we talk about tax savings, then Section
80C is most popular among Indians.
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Under which, there is a provision of tax deduction
up to Rs. 1.5 lakh.
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But do you know that apart from this, there
are many other tax saving options also.
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One of them is Section 80D.
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Today we will discuss this topic in our video. But
before that a quick reminder.
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If you want to watch more videos like this,
then click on the subscribe button and press
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the notification bell
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So let's get started.
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Did you know that India is also known as Diabetic capital of the world?
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And the way the number of cardiac patients are increasing day by day, soon it may become
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cardiac capital as well.
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It surely takes lakhs of rupees in the treatment of cardiac problems.
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But, if we talk about other minor diseases,
when the cost of hospitalization plus the
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cost of medicines is included, the bill goes into lakhs.
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Maybe that's why the government encourages you to take health insurance by providing
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tax deductions under Section 80D.
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Let's understand about Section 80D in detail.
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Under Section 80D, one can avail of a tax deduction on the premium paid for Health Insurance.
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This health insurance can be for you or for your family.
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Family means you, your children, and your parents.
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On the other hand, your relatives or your
siblings are not covered under this.
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But you must consider these two points regarding this.
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Firstly, you can only get deductions for the amount spent over your children and parents,
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when they are not independent but dependent on you for their expenses.
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Secondly, if you are above 80 years of age, and you don't have any active insurance policy,
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then you can claim a tax benefit upto Rs.
30,000 per annum.
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Now, let's talk about how much tax can be
saved under section 80D.
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Depending upon the number of your family members
covered and their age, you can avail a tax
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deduction between Rs. 25,000 to Rs. 1
lakh under this section.
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As per rules, if you purchase insurance for
you and your family, which don't include parents,
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then you can claim for the tax deduction for the premium paid up to Rs. 25,000.
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If your family includes even a single person whose age is above 60, the limit you can claim is Rs. 50,000
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Apart from this, if you purchase health insurance for your parents, then this limit is
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Rs. 25,000 for non-senior citizen parents and it is Rs. 50,000 for senior-citizens.
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This is over and above your family limit.
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Let's understand this through an example. Aarav is a 32 year old software engineer, who is
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earning Rs. 12,00,000 per annum.
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He purchased health insurance policy for himself,
his wife and daughter, which has an yearly
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premium of Rs. 15,000.
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Apart from this, he has also purchased a separate insurance policy for his 70-year-old mother,
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which has a premium of Rs. 33,000.
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So, Aarav can avail the tax benefits in this
way.
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Firstly, Aarav is 32 years old and has purchased the yearly insurance policy of Rs. 15,000,
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As he can claim a maximum tax deduction of Rs. 25,000 under Section 80D.
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In this case, he can claim the whole deduction of Rs.15,000.
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Secondly, he has purchased a policy for his mother, which has an annual premium of Rs. 33,000
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As the age of his mother is 70 years, which means she is a senior citizen and the maximum
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limit of premium deduction is less than Rs. 50,000. So in that case, Aarav can claim the
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whole amount of Rs. 33,000 for tax deduction.
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In this way, by combining the deduction of
both the policies i.e. Rs. 15,000 and Rs. 33,000
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he can avail a deduction of Rs. 48,000.
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As Aarav鈥檚 yearly income is Rs. 12 lakh
rupees and he falls under 30% tax slab.
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And after purchasing the policy, he is claiming
a tax deduction of Rs. 48,000.
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In this case, let's calculate how much tax he is saving.
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First, let's take out 30% of Rs. 48000,
that is RS.14,400
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Apart from that, 4% cess is also applicable
with 30% tax, which is Rs. 600.
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In this case, Aarav can save a total of Rs. 15,000.
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Now, if in the same case, had the age of her mother would have been less than 60 years,
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then for purchasing the policy of Rs. 33,000, he could have claimed deduction of Rs. 25,000.
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and a total of Rs. 40,000.
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Following the same calculation, he saves Rs. 12,400.
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Now let鈥檚 tell you about the additional
benefits covered under section 80D.
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If your expenditure on the premiums of health
insurance for yourself and your family is
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less than the maximum limit, then you can
also claim a tax deduction up to Rs. 5,000
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under Section 80D for preventive health check-ups.
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Let's understand this with an example of Aarav.
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As we discussed, Aarav paid a premium of rupees
15,000, which is less than the upper limit of Rs. 25,000
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Now if Aarav has undergone any health check-up
up to Rs. 5,000 or less, then he can also
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claim that amount for tax deduction.
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So as you saw, you can avail of a tax deduction
up to Rs. 1,00,000 under Section 80D.
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But that doesn't mean that you should purchase
any random health insurance plan.
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Because health insurance provides you safety
and you are spending money on it, so make
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sure that you purchase the plan that suits
your requirements.
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And, if you need any help in choosing the
right plan for you, then click on the link
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below and download ETMONEY.
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This app recommends the right plan as per your needs.
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Plus, you can buy that plan in just a few
minutes and that too with zero paperwork.
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