Having medical insurance for your safety is extremely necessary as it will also save you from the financial crisis during the difficult times. However, at times it can be a costly affair to pay the premiums of your already bought health insurance plan. After reaching halfway, you cannot quit but still be in dilemma of not having the financial freedom to bear the amount. A little knowledge about tax deduction can save some of your money. But for that, you first need to know when you can be eligible for the tax deduction for your medical insurance plan. There can be circumstances when you don’t fall under the tax deduction criteria during which you cannot claim for tax deductions.
Who can Claim for Tax Deductions in Medical Insurance?
In case you are self-employed, you are eligible for the tax deduction. Although an employer covers your spouse, you are eligible for the tax deduction as you are self-employed. All the premiums that have been paid for the health insurance plan qualify for tax deduction under section 80 D as per the Income Tax Act of India.
The individual has the right to claim the tax deduction for health insurance premiums paid for self, spouse, and children whereas the HUF can claim the tax deduction for any member of the family that has been insured under health insurance plan by him.
You can claim the tax deduction against the premium you paid for your parent’s up to 25000 INR. However, if either of the parents is above 65 years of age, the tax deduction can be claimed up to 30000 INR.
The service tax that has been paid on the premium of the health insurance policy is not deductible.
If you are below 65, you can claim the tax deduction benefit up to 25000 INR for the health insurance premium that has been paid by you for yourself, your spouse and your children.
If you are above 65, you can claim the tax deduction benefit up to 30000 INR for the health insurance premium that has been paid by you for yourself, your spouse and your children.
The tax deduction cannot be claimed in every situation on the premiums that you pay for the health insurance policy. There are cases when the health insurance plan is tax deductible and when it is not tax deductible.
Conditions in which Tax Deduction Claims get rejected
The health insurance premium is tax deductible only when you have paid it from your pocket. If your employer is paying your premiums, you are not qualified for the tax deduction against your premiums that have been paid for your health insurance premium.
If the premiums for your health insurance policy are partially paid by you and partly by your employer, you can claim the tax to be deducted for your part of the premium that you have paid.
Which can be the best option to have maximum tax benefit?
Bajaj Finserv can help you avail Best Medical Insurance Policy with tax benefits on the premiums paid for your medical insurance policy. These premiums can be for the medical insurance of any member of your family, and Bajaj Finserv helps you to find all the possible tax deductions to save your money. This tax deduction takes place under section 80 D. With Bajaj Finserv’s medical health insurance policy, you can avail the maximum tax benefits apart from the additional benefits.