SEBI registration no. : ARN-113510

Expiry : 3rd AUG 2025

IRDA license no. : IMF186644360120180192

Expiry : 24th JAN 2027

Articles

Latest articles on Life Insurance, Non-life Insurance, Mutual Funds, Bonds, Small Saving Schemes and Personal Finance to help you make well-informed money decisions.

Non Life Insurance - How to claim tax benefit on premiums for multi-year health plans

10 Jun 2019

fjrigjwwe9r3SDArtiMast:ArtiCont

If the renewal date for your health insurance is falling anytime soon, you may consider buying a multi-year policy by paying a single premium. These policies will benefit you as most insurers are currently offering a discount, and you will get locked into the same rate for multiple years, provided you don’t cross the age slab that warrants a change in premiums.

But what if the amount of single premium you pay for a multi-year policy exceeds the tax deduction limit available on health insurance premiums under Section 80D? According to the income-tax law, you can claim the tax deductions proportionately over the policy term.

Under Section 80D, a resident individual can claim a tax deduction of up to 25,000 in a year for medical insurance premiums paid for self, spouse and children, and an additional25,000 for premiums paid for parents. If the parents are senior citizens and you are paying medical insurance premiums, you can claim an additional deduction of up to 50,000—taking the total deduction to 75,000.

If you were to claim tax benefit proportionately, you would get a deduction on half the premium amount or 23,125 in both years. Insurers usually issue a certificate mentioning the amount you can claim each year as deduction.

Source: Live Mint BACK

SEBI registration no. : ARN-113510

Expiry : 3rd AUG 2025

IRDA license no. : IMF186644360120180192

Expiry : 24th JAN 2024

Copyright © 2024 Design and developed by Fintso. All Rights Reserved