The current financial year 2021-22 is about to end soon. So now you need to buck up to save tax. Suppose, you have fully utilised the maximum limit of Rs 1.5 lakh under section 80C of the Income Tax Act to save tax, then you can also take advantage of tax exemption under section 80D.
Additional tax benefit is available on the premium paid for a health insurance plan under section 80D of Income Tax. Through the provisions of this section, you can claim tax exemption up to Rs 1 lakh on health insurance premium for you and your parents.
A person below 60 years of age gets a tax exemption of up to Rs 25,000 on health insurance premium. The limit is Rs 50,000 for people of age 60 years or more. If the taxpayer is below 60 years of age and buys a health insurance policy for himself and his parents who are above 60 years of age, then one can save up to Rs 75,000 on premiums.
If the taxpayer is above 60 years of age, he can save up to Rs 1 lakh on health insurance premium for himself and his parents.
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Don’t buy policy just for tax saving
Individual policies or mediclaims under section 80D, family floater plans, critical illness policies, health riders of life insurance plans and other variants of health insurance can avail tax benefits on health cover plans. However, experts believe that health insurance plans should not be bought just because of the tax benefits, but the benefits of these policies are even bigger.
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Health policy for family
Experts say that the expenditure on health is increasing continuously. Hospitalisation can prove to be very costly. In such a situation, it is necessary that adequate cover is taken for this through health insurance policy. This will not take up all your savings during critical occasions. No need to take loan. In this way, take adequate health coverage for your entire family.
