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Lower Your Tax with Health Insurance Plan

18 February, 2015

Despite of all the freedom we enjoy, we are still not free from the shackles of stress free life and obligations such as payments of taxes.

There are several ways for living a healthy, stress-free life free from all worries and troubles, which you can adopt to stay fit and fine. However, no one is ready to face the trouble of unexpected medical emergencies and health problems. To get the cost of healthcare treatment reimbursed, purchasing a Arogya Sanjeevani health insurance policy is recommended. Now, what if you come to know that the same health policy can save you from taxation troubles?

To keep the towering costs of medical treatment in check, insurers such as Royal Sundaram have launched comprehensive health insurance plans. To promote awareness of such plans and to safeguard health of its citizens, Indian Government has started providing tax benefits on such policies.

Most of us will not be aware of the available tax benefits provided by these plans. Here is a detailed summary of benefits offered.

  • Under Section 80 (D) of the Income Tax Act 1961, provides tax benefits for premium paid towards health insurance. Such benefits can range up an amount of Rs. 15,000 on deductions done towards premium payment.
  • If you are availing such policy for your dependent parents, which are older than 60 years of age, then such benefit can go up to Rs. 20,000.
  • Under Section 80 (C) of the Income Tax Act, you can avail tax benefits if deductions are up to Rs. 1 lac.
  • Royal Sundaram Lifeline health insurance provides tax benefits for annual deduction of Rs.15000 from taxable income for health insurance premium paid for self and dependants (spouse and children).

Thus, if you want to avail tax benefits as well as gain investment benefit, then purchasing a health insurance policy is recommended.