Section 80D Deduction of Income Tax reduces tax burden of individuals by allowing a claim of deduction of upto Rs. 25,000 per year for medical insurance premium. Section 80D Deduction can be claimed on eligible medical insurance premium paid for the individual, spouse and dependent children. This article will help you to know all facts related to the Section 80D of Income Tax Act, 1961, which will further help you to avail tax deductions for the health insurance premium.
Benefits of Health Insurance under Section 80D of Income Tax Act
A health insurance policy is a shield that protects you and your family from the financial loss at the time of hospitalisation during a medical emergency. It’s your insurer that bears the treatment cost and ensures that you avail the best medical assistance.
Read below the benefits of health insurance:
Cashless Hospitalisation
A health insurance policy offers the cashless facility to you at various multi specialty hospitals nationwide, which offer you cashless treatment. These empanelled hospitals referred to as network hospitals of the insurance company.
Ambulance Charges
The ambulance expenses incurred in case you come across an unfortunate event like a medical emergency are covered by your health insurance policy. Generally, these policies cover the complete or a share of the ambulance expense.
Domiciliary Expenses
Apart from the treatment, you sometimes are asked to avail the domiciliary treatment like the ayurveda treatment, any special therapy, or unani treatment. Your health insurance policy also covers the cost incurred for such a domiciliary treatment subject to the policy norms.
Pre existing Disease
A health insurance policy also provides coverage for certain pre-existing conditions. It also means that the policy additionally covers expenses incurred for the treatment of a disease that existed before buying the policy. A waiting period of 2 to 4 years is applicable in such a case.
Pre and Post Hospitalisation
Apart from certain hospitalisation and ambulance expenses, there are several other expenses that occur when you come across a medical emergency. A health insurance policy takes care of these expenses. It covers both pre and post hospitalisation expenses for a certain period of time. This duration is clearly mentioned in the policy wordings.
Under Section 80D of Income Tax Act, an individual can the claim deduction for the following medical expenses during the financial year:
- Medical insurance premium paid by you through any mode of payment other than cash.
- Expenses borne by you under any Central Government health schemes.
- Sum paid by you on account of preventive health checkups.
- Medical expenses incurred for the health of a super senior citizen.
Thus, Section 80D of Income Tax helps to save thousands up to Rs 25,000 to Rs 30,000 from your pocket and a relief for Taxpayers to an extent which paves way to utilise their Health insurance policy as a medium of saving in double perspective.
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