The premium paid on health insurance is exempted in ITR under section 80D of income tax. In this the premium is deducted from the taxable income. This helps in reducing the tax burden.
Considering the rising medical expenses, it has become necessary to take health insurance in today’s time. Through this, you can easily cover the expenses incurred in a medical emergency, due to which there is no sudden financial burden on your family.
You can claim a deduction in your income tax return on the premium paid for health insurance. In this report, we will give complete information about it.
Exemption on health insurance in Inocme Tax
Under Section 80D of the Income Tax Act, you can claim exemption in ITR on the premium paid by you. This also reduces the tax burden on you.
The premium paid during the financial year for health insurance is deducted from taxable income under section 80D. In this, a person can claim a maximum exemption of Rs 25,000. If a person pays premium for his/her parent’s health insurance, he/she can further claim an additional exemption of Rs 50,000. Thus a person can get exemption of Rs 75,000 in a financial year.
If both the person having health insurance and his/her parents are above 60 years of age, he/she can get an exemption of Rs 1,00,000 (Rs 50,000 + Rs 50,000) in the income tax return.
How much exemption will be available according to the slab
If your income is between Rs 2.50 lakh to Rs 5.00 lakh and you pay a premium of Rs 25,000, you will get a discount of 5.20 percent or Rs 1,300. If you fall in the slab of Rs 5.00 lakh to Rs 10.00 lakh and pay a premium of Rs 25,000, you will get a discount of 20.80 per cent or Rs 5,200. Whereas, if your income is more than Rs 10 lakh and you pay a premium of Rs 25,000, you will get a discount of 31.20 per cent or Rs 7,800.
