SECTION 80D – HEALTH FRIENDLY NORM
The Constitution of India has vested upon us several rights and benefits that make the life of a common man in India, living and sustainable happily. Right to Freedom under Article 19, Right to Speech under Article 19(1)(a), Right to Free and compulsory education under Article 21(A) and many more.
Health Insurance Policies are an integral part of our life as it assures a happy and danger-free life ahead. They help an individual with some assistance during the case of injuries and accidents. And with the ever-increasing costs of medical facilities, there is an urgent need for some laws and norms, which provide some claims and monetary benefits.
Some of the advantages of a health insurance policy are:
- Immediate ambulance assistance and ambulance expense
- Free Hospital Admission
- Tax Deduction and money claim
The money claims and reductions in taxes are mentioned under Section 80D of the Income Tax Act, 1961.
Section 80D provides the individuals of India with some monetary benefits. By this Section, a taxpayer in India is permitted to allow the following benefits and deductions in the premium paid on health Insurance Policy.
The limit of the claim has been increased recently in the year 2015-2016.
Some of the deductions and claims are:-
1. The allowed tax deductions and money claim on medical premiums paid:
An individual is allowed to claim 25,000 rupees per annum on the health insurance premium paid. The premium should be paid by you, your dependent children, or your spouse. The money claim increases up to 30,000 rupees if any of you is a senior citizen (i.e., above 60 years of age).
2. Money Claim for Health checkups:
A taxpayer of India is also liable to claim 5,000 rupees along with 25,000 (or 30,000) rupees per annum, for health checkups.
3. Deduction on premium paid for your parents:
If a health premium is paid by an individual for his/her parent or guardian, then he/she is entitled to a total sum of 25,000 as a medical claim. If the guardian or parent is a senior citizen then, the amount may go up to Rs. 30,000. He/She is also given an extra sum of Rs. 5,000 for health checkups.
4. Money Claim for super-senior citizens:
A super senior citizen, who is above 80 years old, can claim up to Rs. 30,000 for his/her health checkups and medical assistance.
However, the benefits are accompanied along with some losses. There is no benefit on premium paid through cash. Premium paid via online transactions, debit or credit cards are entitled to medical claims and deductions.
However, the key point to keep in mind is the coverage that a Health Insurance Policy provides to the individual and not the claims and benefits. Health Insurance Policies are not merely methods to claim benefits, but they are safety measures in cases of unfortunate and life-disturbing events.
So, Advise people to choose prudent Health Insurance Policies as the premium once paid saves them for the entire 365 days.