Buy a health insurance plan and get a mid-sized smart phone free! Or maybe purchase a health plan for your entire family and get a high-end smart phone free! Or may be a tablet! Probably a decent laptop!
Now this grabs your attention, right? Obviously, the matters of tax are considered to be boring and left for our CAs to handle.
The tax benefits on a health insurance plan kick in. Section 80D of the Income Tax Act offers you tax rebates for your expenses incurred in purchasing a health plan. The tax deduction that you can get is up to a maximum of Rs. 65,000/-. However, it is dependent on a lot of factors. Following are the details about how you can maximise your savings on tax while still being safe and secure under a mediclaim policy:
Health Plan for You and Family
The maximum tax deduction that you can claim for is Rs. 25,000/-. But if you are a senior citizen, you can claim a maximum amount of Rs. 30,000/- on a single policy within a given financial year.
Health Plan for Your Parents
If you buy a policy for your parents, you can avail an addition tax rebate of Rs. 25,000/-. If your parents are above 60 years of age, then the tax rebate goes up to Rs. 30,000/-. In simple words, if you pay a premium of up to Rs. 30,000/- for your parents health plan in a single year, you can claim it for tax deductions.
This is an additional benefit given to you if you get a preventive health check up done. The limit set on this tax rebate is Rs. 5,000/-. This is, however, the total limit set on the entire family’s expenditure on this account. For example, if you and your father get a preventive health check up done and the total cost comes out to Rs. 8,000/-, then you can claim for only Rs. 5000/-. Also, while other tax rebates are applicable only if payment is made in any mode except cash, for medical check-ups, even if you have paid in cash, you can still claim for tax benefits.
Therefore, the total cumulative tax saving for the premiums paid for your family, parents (above 60 years old) and preventive health check up comes down to a total of Rs. 65,000/- in a given policy term. Are you thinking of buying some flashy gadget yet?
You can save some more money by purchasing these plans online. After comparing various plans, you can find out about the policy that offers maximum benefits at the lowest possible cost. This way you end up saving money on premium too as online plans are much economical compared to offline plans. Also, you gain by buying on your own as you’ll be aware of all the policy details that come handy at the time of filing for claims.
Health plans are a must these days due to escalating health care costs. It’s a bonus to enjoy tax benefits on investments made to safeguard you and your family’s health!