Spend on health insurance and get dual benefits
Want to know how?
When covid pandemic surged, since then people have become more cautious, they have started taking every possible precaution to protect themselves from this pandemic but definitely it’s not going to provide forever health security and hence they have started investing in protective investments such as health insurance to fund sudden health mishaps.
And when pandemic is still not showing any sign of abatement, the rising second wave of covid, provides all the more reason to think for safeguarding your self’s and your family’s health by spending on health insurance.
So, by spending in health insurance, it will not only provide a safety net for your savings and your family but also save tax as you will get a deduction under section 80d, so it’s killing two birds with one stone.
Deduction under section 80d is available when individual or HUF spends on medical insurance premium, Central government health scheme, preventive health checkups or medical treatment.
The expenditure in any of these should be done for-
In case by individual- shelf, spouse, parents and dependent children
In case of HUF – any member of HUF
But there are conditions:
- that the mode of payment it should be other than cash but cash payments are allowed for preventive health checkup
- the aggregate payment for preventive health checkup of self, spouse dependent children and parents cannot exceed 5000
So, by having proper knowledge about deduction under 80d, you can spend on health insurance and save tax. Here is the table that will help you to understand easily how much to spend and how much deduction you can avail –
|Self, spouse & dependent children
|i) Medical insurance premium
|ii) CG health scheme
|iii) Preventive health checkups
|General deduction i+ii+iii
|Additional deduction (when medical insurance policy taken on the life of the senior citizen- age 60 or more)
|Medical expenditure of senior citizen & Mediclaim premium not paid for such person
|Max deduction A+B