Tax Benefits on Health Insurance: If you have fully utilized the maximum limit of Rs 1.5 lakh under section 80C of the Income Tax Act, then you can also take tax benefits under section 80D.
Tax Benefits Beyond Section 80 C : You have a chance till March 31, 2022 to save tax in the current financial year 2021-22. In order to save tax, even if you have fully utilized the maximum limit of Rs 1.5 lakh under Section 80C of the Income Tax Act, you still have a legal way to save more tax. You can enjoy more tax benefits under section 80D even after the 80C limit is over. Additional tax benefit is available on premiums paid for health insurance plans under Section 80D of Income Tax. Through the provisions of this section, you can save a lot of tax on health insurance premium for yourself and your parents.
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Taxes can be saved up to a maximum of Rs 1 lakh
Pankaj Arora, MD and CEO, Raheja QBE General Insurance Company, says that people below 60 years of age get tax benefits of up to 25 thousand rupees on health insurance premium. For people of age 60 years or more, this limit is 50 thousand rupees. This means that if you are below 60 years of age and buy a health insurance plan for yourself and your parents who are above 60 years of age, then you can save up to Rs 75,000 in tax on their premiums. On the other hand, if the taxpayer is above 60 years of age, then they can get tax benefit of up to Rs 1 lakh on health insurance premium for themselves and their parents.
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Benefits can be found on all these health cover plans
Individual plans under section 80D or health cover plans like mediclaim, family floater plans, critical illness plans, health riders of life insurance plans and other variants of health insurance can avail tax benefits. Although experts believe that health insurance plans should not be bought only because of the tax benefits, but the benefits of these policies are even bigger. Health expenses are increasing day by day, hospitalization can prove to be very costly financially, so it is important to get adequate coverage through health insurance. With this, the existing savings will not be exhausted on such critical occasions and there will be no need to take loans from friends and relatives. Arora says that adequate health coverage must be taken for the entire family.
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