Filing Income Tax Return? Get mediclaim and avail tax exemption on up to Rs 75,000 investments
Under the Income Tax Act Section 80D, one can claim tax exemption up to Rs 75,000 on individual mediclaim premium payments.
Folks going to file Income Tax Return or ITR would be looking for avenues to save income tax, which they would be paying. For their knowledge, having an individual mediclaim policy can help them save their hard earned money that they might be paying as income tax. According to the tax and investment experts, if an income tax payer has an individual mediclaim policy for his or her family, he or she can claim up to Rs 25,000 investments in such policy. However, if they are paying the mediclaim of their parents, who are below 60 years of age they can claim, an additional Rs 25,000 income tax exemption. If their parents, whose mediclaim policy premium the income tax payer has paid, this Rs 25,000 additional exemption limit gets enhanced up to Rs 50,000 as senior citizen's health policy premiums are quite high.
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Speaking on the income tax exemption that an income tax payer can claim if they have taken an individual mediclaim Balwant Jain, a Mumbai-based tax and investment expert said, "It's always advisable to invest than to pay income tax because you won't get anything in return after paying a high income tax. So, those falling under the income tax slab must check about the mediclaim exemption even after they have availed Rs 1.5 lakh deduction under Section 80C. Under Section 80D, an income tax payer can claim up to Rs 25,000 mediclaim premium payments for his or her family in a financial year. If the person pays mediclaim premium of his or her parents, the exemption limit will increase to an additional Rs 25,000 if the parents are below 60 years of age and in case of parents being a senior citizen, this additional exemption gets enhanced to Rs 50,000. So, in total, an income tax payer can claim up to Rs 75,000 with subject to some terms and condition under Section 80D."
Elaborating upon why the mediclaim premium payments for parents are exempted from income tax, SEBI registered tax and investment expert Jitendra Solanki said, "A senior citizen parents are not eligible for a standard deduction of Rs 50,000 that a salaried person can avail. So, that standard deduction is passed-on to the son or the daughter who is paying for the individual mediclaim premium for his or her parents." He said that by this income tax norm, the government is not losing money but by paying the mediclaim premium of the parents, an income tax payer can save some of his money.