Income Tax Benefit on Health Insurance U/s 80D With Automated Income Tax Form 16 Part B for F.Y. 2018-19

You may have heard stories where a genuine ailment in a family has depleted them of their riches. These are stories as well as can transpire. To make preparations for such issues – you should purchase Health Insurance. The great part is you additionally get tax cut on premium paid for Health protection. In this post, we settle what's and How's of Tax Deduction on Health Insurance sec 80D!

The amount Tax Benefit I jump on Health Insurance?

Financial plan 2018 has upgraded the breaking point of Health Insurance premium qualified for duty reasoning under area 80D for Senior natives. The point of confinement is Rs 25,000 for individuals with age under 60 years and it's Rs 50,000 for senior residents. You can likewise guarantee Rs 5,000 for Preventive Health Checkups. This is inside the Rs 25,000/50,000 point of confinement. You can likewise guarantee extra tax cut on Health protection premiums paid for your parent.

What's the Tax Benefit for Health Insurance of Parents?

You can guarantee extra duty reasoning on the premium paid for Health Insurance of your folks. This can be up to Rs 25,000 on the off chance that your folks are underneath 60 years old and Rs 50,000 in the event that any of your folks are over 60 years old.

Download Automated Income Tax Form 16 Part B for f.Y. 2018-19 [ This Excel Utility can get ready at once 100 representatives Form 16 Part B ]

Yet, simply paying premium isn't sufficient. The arrangement ought to have been purchased by you, for example, you ought to be the proposer of the approach. There are situations when individuals pay a premium for a current approach which was repurchased a couple of years by their folks and guarantee charge reasoning u/s 80D. This can arrive you stuck in an unfortunate situation. So the most ideal route is to either purchase another strategy or keep in touch with the concerned insurance agency to change the proposer at the season of reestablishment.

Would premium be able to be part among Husband and Wife for tax reduction?

Assume you purchased family floater Health protection which has a premium of Rs 35,000 which covers self, companion and kids. Presently would you be able to part this premium among a couple so both can guarantee advantage? The appropriate response is NO. The reason being there must be one proposer for a strategy and consequently, the tax reduction must be asserted by one.

To get around this you may choose two separate approaches yet remember the general premium may be higher. So do your figurings before choosing.

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Deduction 80D: Complete Detail (Updated) A.Y.2017-18 & 2018-19, Plus Income Tax Calculator All in One for F.Y.2017-18 and A.Y.2018-19

The person who paid medical insurance premium himself or spouse or parents or depended children can claim the deduction from total income of the person as per the instructions are given below. We will discuss here the complete detail about deduction under section 80D for the A.Y. 2017-18 and A.Y. 2018-19.

Who can claim deduction 80D?

Individual and HUF assessee can claim the deduction under section 80D for any medical insurance premium known as MEDICLAIM.

Note: The deduction is allowed only under an approved scheme of General Insurance Corporation of India or any contribution made to Central Government Health Scheme or any similarly notified scheme.

Maximum deduction allowed u/s 80D

Check how many deductions of medical insurance premium, you can claim for self and your parent.

·                          Download Automated TDS on Salary Calculator All in One for Bihar State Employees for F.Y.2017-18 & A.Y.2018-19

 Tax Compute Sheet + Salary Structure + H.R.A.Calculation + Form 16 Part A&B and Part B

·                          Download Automated TDS on Salary Calculator All in One for Assam State Employees for F.Y.2017-18 & A.Y.2018-19

  Tax Compute Sheet + Salary Structure + H.R.A.Calculation + Form 16 Part A&B and Part B

·                          Download Automated TDS on Salary Calculator All in One for Govt.& Non-Govt. Employees for F.Y.2017-18 & A.Y.2018-19

  Tax Compute Sheet + Salary Structure + H.R.A.Calculation + Form 16 Part A&B and Part B + Arrears Relief Calculator U/s 89(1) With Form 10e

F.Y.2017-18/A.Y.2018-19

 I – You are below 60 Years – Rs.25,000 and Your parents are also below 60 years – Rs. 25,000 then aggregate Rs. 50,000.

 II – You are below 60 Years – Rs.25,000 But Your parents are above 60 years – Rs. 30,000 then aggregate Rs. 55,000.

III – You are above 60 Years – Rs. 30,000 and Your parents are also above 60 years – Rs. 30,000 then aggregate Rs. 60,000.

Note: The maximum deduction for payment on account of preventive health check-up of self, spouse, parent(s) or depended on children, in the aggregate shall be Rs.5,000.

Important Points Related to Deduction under section 80D

·                          You must note here that the deduction is allowed only if the payment is made from your own income during the pervious year.

·                          Any premium for health insurance or Central Govt Health Schemes (CGHS) shall be made by any mode except cash. However, cash payment shall be accepted if paid during preventive health check-up.

·                          Payment made via credit card/internet banking shall also be eligible for deduction.

·                          The main and important point of Deduction for Medical Insurance Premium (MEDICLAIM) under section 80D is that it does not include in a deduction under section 80C (Rs.1,50,000 in total). In simple words, you can get deduction under section 80D extra over section 80C.

·                          Now, it is immaterial that parents are dependent on you or not. You can claim the tax deduction for medical insurance premium paid for your parents whether they are dependent on you or not.  The condition of dependency of parents is eliminated w.e.f. A.Y. 2009-10.

Tax Planning by MEDICLAIM (Medical Insurance Premium) Under Section 80D

·                          So it is a good strategy to pay your medical insurance premium yearly for you, wife/husband, children, and parents.

·                          You can get tax deduction of up to Rs.65000 under section 80D including preventive health check of Rs.5000 (self + family)

·                          The other thing you must note that medical insurance premium paid for parents having more benefits. It is immaterial that parents are depended or not.

Thats’ all readers, If you would like to buy any health insurance policy then please do your research or consult with your tax professional. Always compare your policy premium, features, benefits, claim etc before buying any health insurance policy. There are some health insurance policies to claim deductions under section 80D (MEDICLAIM). Please ask any query related to health insurance policy, mediclaim, deduction under section 80D through comment form give below. We’ll also suggest you some good health insurance policy if you really want to buy with tax planning.

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