When it comes to benefits, medical insurance surely has many. It can support in tough times, elevate the financial support that ensures quality treatment and reach better medical services. While everyone is aware of its ability to support impromptu and severe medical conditions, only a few know that these can also save one from taxes. This is what section 80d of the income tax department of the Indian government is.
Under 80d medical insurance, the tax liability of the insurance payee reduces, and it relieves the burden of tax from the insurance bearer’s shoulder. In other words, it includes and excludes medical insurance expenses from premium amounts depending on age, income, and tax.
Let’s dig deeper into these tax benefits:
What is the 80d Medical Insurance Act?
80d medical insurance is government of India’s Income tax department’s provision. It allows an insurance bearer to claim the income tax deductions from their taxable earnings. This also provides them with tax deductions on the premium amount of medical insurance. This is applicable for the medical insurance for spouses, dependent children, dependent parents, etc. But all this depends primarily on the insurance bearer’s age and income. The deduction is also applicable for super-top health plans.
Therefore, to successfully avail the maximum benefits of tax deductions, it is important to comprehend the inclusions and exclusions under the 80 D medical insurance act.
Deductions Under the 80d Medical Insurance Act
The 80d medical insurance provision allows some inclusions and some exclusions. It allows a deduction of 25000 in a financial year. The rules are quite different for senior citizens policies and the allowed limit is Rs 50,000.
According to the 80d medical insurance act, an individual can claim a deduction of up to Rs 25000. This is applicable only for self, spouse, and the dependent children insurance. And if parents are less than 60 years of age, one can claim Rs 25000 and if over 60 years of age, a claim of Rs 50000 can be made.
How to Claim the Tax Benefit Under Section 80d Medical Insurance?
Generally, filing a claim settlement seems daunting but by following a few steps and knowing the balanced approach, one can make sure to get the process done seamlessly. Here are few simple steps to go through the claim settlement process under the 80d medical insurance act easily-
- Visit income tax department’s official website.
- On the official website, navigate to the e-file section and click the “Income tax return” option.
- Fill up the ITR form and select the appropriate assessment year.
- Click on ‘original/Revised return’ under ‘filing type’ and then click on ‘prepare and submit online in the submission mode option.
- Verify your bank details and data you just filled in. Click ‘continue’.
- Upload DSC or digital signature certificate and submit the application.
Apart from these simple steps, one needs to keep a few more things in mind for getting a successful claim settlement and these are-
- The premium that is paid by parents on the behalf of children that are working is not considered for tax return.
- Always remember to file your ITR before the deadline.
- If one pays a premium amount for siblings, relatives, and unrelated persons, it would not be considered a tax deduction.
- Cash payments are not applicable under 80d medical insurance. Therefore, to make sure, you avail its benefits, always pay through net banking or credit/debit cards or any other online methods.
Get your Tax Benefits from Medical Insurance!
Along with other long listed benefits of medical insurance policies, if you also want to avail of the tax benefits, contact your insurance provider now for complete guidance. One example of such insurance provider is Care Health insurance. It has a high claim settlement ratio and a stable reputation with 24*7 customer support.
It can also guide you through the 80d medical insurance act and can make sure you get the most out of your medical insurance.