The much awaited budget 2018 brought many expected and unexpected turns and twists. But most importantly, it set a perfect time to save tax. The budget 2018 proposed by Finance Minister Mr. Arun Jaitely on 1st February 2018 desires to set a trend among Indians to take up health insurance and secure their precious lives as a strong healthcare is a pillar to strengthen the economy and an indicator of a developed nation, too.
With the announcement of ‘world’s largest’ health insurance scheme as flagship national health protection scheme set to benefit 10 crore Indians, it is aimed at insuring every poor family by ₹5 lacs. The benefit from health insurance to middle class tax payers comes from extension of deduction in sections 80C, 80D and 80DDB.
Under section 80C
Medical insurance premium paid by individual for himself, his spouse or dependent parents is allowed to avail exemption under section 80C. The limit for individual or spouse medical insurance is ₹25000 but extends to ₹50,000 for senior citizens i.e. for everyone beyond the age of 60. But if the assesse has taken medical insurance for his parents then further deduction of ₹25,000 can be availed. But in case of assesse being a senior citizen limit extends to ₹50,000.
Further, deduction of ₹5,000 can be taken for preventive health check-up and most prominent hospital provide such facilities. But it is inclusive in overall limit of section 80C. Thus, it is advisable to buy an effective health insurance policy!
Under section 80D
Deduction under section 80D is for health insurance premium, preventive health scheme or medical expenditure in respect to senior citizens is increased to ₹50,000 from previous limit of ₹30,000. In case of single premium policy having cover for more than 1 year, the deduction shall be available on a proportionate basis for the period.
Under section 80DDB
Deduction under section 80DDB (medical treatment of specified disease for senior and very senior citizen) is also enhanced from ₹60,000 and ₹80,000 respectively to ₹1,00,000.
Further, this budget focuses on overall betterment of health care facilities in India and incentivising the lower middle class and poor citizens to purchase health insurance.
It’s vital to take up a health insurance policy not just to save tax but for a healthy and better living. Fulfill your dual objectives – its like hitting two birds with a single stone. We may not be able to judge whether budget 2018 satisfies all expectations or not, but it totally wins the hearth of potential health insurance takers. Come, let’s get a health insurance policy today!