Health insurance buyers to enjoy increased tax benefits

Health-2BInsurance
In line with popular expectations Finance Minister Arun Jaitley announced a hike in tax benefits available to insurance buyers in union budget announced today. An increase in deduction limit under section 80D to Rs 25000 should benefit the health insurance buyers from extant Rs 15000.  Health insurance premium payment eligible for deduction is raised to Rs 30000. Health insurance premium eligible for tax deduction was at Rs 15000 and was not revised for long.
There was a constant demand by industry and health insurance buyers to revise it upwards. Rising health care costs was the main reason behind the demand for raising the tax deduction eligibility limit. Also more evolved health insurance products, offering a wider range of benefits, pushed up the premium in recent years. It has set a perfect stage for the hike in health premium limit under section 80D. Increased tax sops are aimed at helping tax payers to buy enhanced covers for themselves. Senior citizens above 80 years of age with no health insurance cover are allowed a deduction of Rs 30,000 towards expenses incurred for health care.
Deduction available under Section 80DDB for senior citizen has been hiked up to Rs 80,000 from extant Rs 60000. The deduction now stands at Rs 80,000 or actual which ever is lower. However the finance minister did not offer any tax deduction to the premium paid towards home insurance policies and personal accident insurance policies. Even the limit available under section 80C remained untouched, leaving not much scope for additional benefit for life insurance buyers.  Also senior citizens were asking for a tax deduction of Rs 50000 for health insurance premium payment. The prayer was heard partly, as FM opted to hike it to Rs 30000 from extant Rs 20000.

 

1 Comment on "Health insurance buyers to enjoy increased tax benefits"

  1. Superb post Sir !!! The concept of comparison between section 80D and Section 80DDB is just simply awesome. Can you please give more information about Section 80DD ???

Comments are closed.