The end of financial year brings with it a series to tax deductions and you really worry to face the account statement during these months. During this financially restricted time, meeting any health emergency for which you are not prepared can be daunting. With increasing awareness of healthcare and preventive care, more and more people are opting for regular check-ups to know the status of their health or track the progression of any medical condition. This proactive approach helps in detecting diseases early to initiate the treatment on time and avert any emergency condition that is mentally and financially stressful.
Despite taking all the precautions, falling prey to certain diseases is not uncommon. Still, if you have some health insurance or policy, you are likely to get a shield against financial dents incurred in the hospitals and clinics. Many people do not understand the importance of such benefits and end up in terribly difficult situations both financially and physically being sick or unhealthy. Sudden health emergencies or a physically unhealthy population also degrades the economy of the country by pulling down the productivity and hence the performance meter.
Under such circumstances when the health of the nation matters a lot, the Indian income tax department has taken several steps to encourage timely health check-ups among people by offering some tax benefits.
Tax norms on medical insurance
Living a healthy life at any age is the right of every Indian. That is why the government of India ensures the healthy wellbeing of its taxpayers by allowing a deduction of the premiums paid for health insurance or health check-ups. Under Section 80D of Income Tax Act, whatever you pay as the premium for yourself, your children or spouse will be deducted from the taxable income. Not only this, the premium paid for super senior citizen will also be deducted from the salary of one who is paying the premiums. It is to be noted that the maximum deduction allowed is Rs 30,000.
Benefits on preventive health check-ups
With lifestyle diseases on a rise, preventive health check-ups are encouraged across organizations of all sizes. Even government offers some tax benefits to make everyone go for these preventive check-ups. The premiums paid for the check-ups can be availed under section 80D. The amount received depends on the age of the person.
How to avail tax benefits on healthcare?
The income tax rules disallow tax benefits on payments made in cash. Only cash payment for preventive health check-ups is eligible for tax benefits under section 80D. For health insurance or other policies, one should try to make payment through internet banking, cheque, draft, or credit card.
There are a number of initiatives by the government to make people take care of their health. The benefits may vary according to the age and occupation of the people. But investing in healthcare, either through an insurance or a health check-up package is really the need of the hour. In view of rising hospital cost and emergence of new types of diseases, these financial preparations help in bearing the pressure. Before choosing any plan, get the details from an informed person to take the right decision.