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Contributor
Soham Velhal
Posts: 26
Registered: ‎23-08-2017

What are the tax benefits I get if I opt for Health Insurance?

What are the tax benefits I get if I opt for Health Insurance?

1 REPLY 1
Contributor
Malcolm Soans
Posts: 23
Registered: ‎28-08-2017

Re: What are the tax benefits I get if I opt for Health Insurance?

Health insurance comes with attractive tax benefits as an added incentive. There is an exclusive section of the Income Tax Act which provides tax benefits for health insurance, which is Section 80D, and which is unlike the section 80C applicable to Life Insurance wherein other form of investments/ expenditure also qualify for the deduction. Currently, purchasers of health insurance who have purchased the policy by any payment mode other than cash can avail of an annual deduction of Rs. 15,000 from their taxable income for payment of Health Insurance premium for self, spouse and dependent children. For senior citizens, this deduction is higher, and is Rs. 20,000. Further, since the financial year 2008-09, an additional Rs 15,000 is available as deduction for health insurance premium paid on behalf of parents, which again is Rs 20,000 if the parents are senior citizens.