Health insurance helps a lot in saving tax. In view of the increasing cost of treatment, people’s interest in health policy has increased. If you have not bought a health policy till now, then you can save a lot of tax by buying it. However, it is important to keep in mind that deduction on the health policy is found only in the old regimen of income tax. In the new regimen of income tax, there is no deduction on the health policy. Let us know about it in detail.
Decision under section 80D
Deduction is available on health policy under Section 80D of Income Tax Act, 1961. A person can claim deduction by purchasing a health policy for himself, his family and parents. If a person’s tax is made a lot, then he can save tax by purchasing a health policy. A person can buy a health policy for himself and his family and claim deduction on his premium. A person can buy a health policy for his elderly parents and claim a premium of Rs 50,000 on his premium. If the parents are under 60 years of age, then the deduction of Rs 25,000 can be claimed.
Two benefits of health policy
Shashi Kant Dahuja, executive director and chief underwriting officer of Shri Ram General Finance, said that by claiming deduction under section 80D, you not only take health care for yourself and your family, but you also do tax-saving. In this way, buying health insurance policy has two advantages. First, this does not worry about the cost of treatment. Second, this reduces your tax liability.
Buy policy before 31 March
Experts say that before 31 March you can buy a policy and tax-sewing in FY 2024-25. If a person buys health insurance after 31 March, he will not be able to pay taxes in FY25.
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Must buy your own health policy
Experts say that people who do private jobs can also reduce their tax liability by purchasing health policy. Many people do not buy health policy because they get a health policy from the company. However, the benefit of such policy stops as soon as the company leaves. On having his health policy, the person still has health coverage after leaving the company.