Insurance: If people have medical insurance then they can gain financial strength on hospital bills etc. At the same time, benefits can also be availed in ITR through medical insurance. Let us know who can benefit from this…
Income Tax Return: It is very important for people to fill income tax return. Even if people’s income is not taxable, people can get many other benefits by filing ITR. At the same time, when people file income tax returns, they can take many measures to save tax.
People can also get benefits by filing ITR on medical insurance. At the same time, many medical insurances provide coverage to the entire family. In such a situation, it is important to know who can avail tax benefits from that medical insurance policy? Let us know about it…
Medical insurance
Deduction on medical insurance premium can be claimed under section 80D and not under 80C. The tax benefit under Section 80D is in addition to the deduction of ₹1.5 lakh available under Section 80C.
The new tax regime is the default tax regime for the financial year 2023-24 onwards and deductions under Chapter VI A i.e. 80C, 80D etc. will not be available under the new tax regime. In such a situation, people will not get tax benefits on medical insurance in the new tax regime.
Old tax regime:
If you opt for the old tax regime, you can claim deduction under Chapter VI A of the Income Tax Act. Section 80D of the Income Tax Act states that deduction on medical insurance premium can be claimed by a person who pays the premium for himself, spouse, dependent children, parents.
There is no mention of the proposer or the policy owner in the Act. It only mentions that you can claim the deduction if you “pay premium” for the policy for yourself, spouse, dependent children, parents.
This is the limit.
The maximum deduction available for self, spouse and dependent children is ₹ 25,000. In case of senior citizens, the limit increases to ₹50,000. Similarly, if you are paying medical insurance premium for your parents’ policy, you can claim an additional benefit of ₹25,000 for your parents’ medical insurance policy.
If parents are senior citizens, the limit increases to ₹50,000. To qualify for the deduction, the premium must be paid through non-cash mode. Apart from this, you can also claim a tax deduction of ₹5,000 per year on preventive health care for your family.
