To get relief from the high medical bills these days, health insurance is a must. This saves money during hospitalization as well as saves some tax. Let us go through them..
According income tax law section 80D, health insurance premium for policies taken individually, total family, and parents is exempted from tax. Even if you’re a member of a group insurance policy, you can claim for tax relief if you pay it yourself. This is not possible if the company pays it.
For the financial year 2016-17, the limit for this is 25000 for people below 60 years and 30000 for above 60. Along with this, there is exemption for parents of 25000 if they are below 60 years and 30000 if they are above 60. Premium should be paid through cheque.
You can get exemption for an extra 5000 under this section. You have to undergo medical tests prior to taking this policy. This is applicable to medical tests for you individually, your life partner, children, your parents. Remember this is not 5000 per person but in total.