There is no secret that everyone tries to minimize their tax burden as possible by investing in some favorable scheme. In this regard, Section 80C of the Income Tax Act of 1961 becomes the best alternative for taxpayers since it allows them to claim deductions on provident fund payments, investment for Sukanya Smriddhi Yojana, principal amount payment towards house loans, and other expenses. But, did you aware that Section 80D, enables you to claim deductions for health insurance premiums? Since the majority of Indian residents do not have health insurance and need to rely on savings or loans during a medical emergency, thus the section is often overlooked. To gain knowledge about the benefits of the section on income tax reduction, you may contact CA Chandan Agarwal & Co. in Kolkata further.
Before that let us first convey the scheme's perks to you.
A Quick Overview of Section 80D - Under section 80D, any individual or Hindu Undivided Family can claim a deduction for medical insurance premiums for both top-up health plans and critical illness plans (HUF). Section 80D allows taxpayers to claim a deduction for health insurance plans not only for themselves but also for other members of their family.
Benefits Under the Scheme
• The maximum deduction for health insurance premiums paid for yourself, your spouse, and your children (under the age of 18) is Rs. 25,000.
• If the taxpayer or his/her spouse is over the age of 60, the maximum deduction they can claim is Rs. 50,000/- per year.
To Sum Up,
When claiming a tax deduction under Section 80D, it is best to assess your health insurance needs and obtain appropriate coverage rather than chasing the upper limit blindly. To clear up any confusion about the benefits, please get in touch with a knowledgeable CA firm like CA Chandan Agarwal & Co. who can provide you with proper information always.
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