Insurance

What Are The Income tax benefits on medical treatment and health insurance

adminComments(609)

From the past few years, expenditure incurred on healthcare has been on the rise, encompassing expenses on preventive medical check-ups, medical insurance, etc. Income-tax Act, 1961 (the Act) provides certain tax deductions for an individual in respect of such expenditure happened on self or dependents, which have been discussed in this article. Medical claim/Health insurance premium For individuals, deduction is allowed for premium paid under a medical insurance policy covering his/her own health or his/her family’s (i.e., spouse and dependent children) up to Rs 25,000 per year. Further, an individual can claim a deduction for the premium paid under a medical insurance policy covering his/her parent or parents up to Rs 25,000 per year.

“In case the individual, spouse or dependent parents are resident senior citizens (i.e., of the age 60 years or more), then the aforesaid deduction limit is enhanced to Rs 50,000 per year. Expenditure incurred on preventive health check-up of up to Rs 5,000 per year for self and family and/or parents, respectively can also be claimed as a deduction. This deduction is irrespective of the individual’s age and within the overall limits mentioned above.“

In the case of a salaried employee individual, it is possible that medical insurance coverage is possible by providing the employer (either by way of direct payment under a medical insurance policy with the insurance company for the employee or reimbursement of such premium to the employee for the coverage of the employee and his/her family).  Such premiums paid/reimbursed by the employer are tax-free perquisites for the employee. The employee may also opt for a expensive coverage, upon being given a choice by the employer, by paying a top-up premium at his/her own expense. Such premium would be eligible for a deduction under Section 80D of the Act.  The employer have to consider such a deduction while deducting tax at source (TDS) on taxable salary.


admin

Related Articles
Insurance

Digital Insurance companies to launch ‘Pay-at-drive’ motor vehicles, add-on

admin

Motor vehicle insurance is most commonly used insurance by everyone in the country. we can not even imagine Indian individual without two -wheeler and followed by insurance. Now Private insurance company has announced the launch of ‘Pay-as-you-drive’ add-on feature to its motor insurance product portfolio. It benefits vehicle-owners with low usage to earn a discount […]
Insurance

This Types of Car Insurance Policies Are Mostly Taken in India

admin

Car insurance is a tool meant to protect you against the financial losses which may occur due to an accident or any unfortunate event involving your car. It is crucial to own a basic cover of car insurance as it is regarded as compulsion as per the Indian Motor Tariff.However, before opting for an insurance cover for your […]
Insurance

The government aims to plan country’s insurance industry to reach its highest by 2027

admin

Insurance one of the most commonly requirement of an every individual, India’s life insurance industry is expected to grow at a compound annual growth rate (CAGR) of 10.9% through 2026, driven by growing awareness and positive regulatory landscape and in terms of gross written premiums. In 2022, many financial analysts stated that ages between 18 […]

609 thoughts on “What Are The Income tax benefits on medical treatment and health insurance”

  66. Pingback: bahis siteleri