Tax Mediclaim Benefits

Often, one may hear the terms inpatient used when referring to a type of diagnostic or therapeutic procedure. "Inpatient" means that the procedure requires the patient to be admitted to the hospital, primarily so that he or she can be closely monitored during the procedure and afterwards, during recovery.

Tax deduction is allowed for health insurance premium payments and such tax benefits can be taken by an Individual. Tax deduction under section 80D is allowed only to an Individual or HUF (Hindu Undivided Family), a Resident or Non-resident citizen of India. In terms of section 80D, tax deduction is allowed for the premium amount paid as insurance premium to cover the health of the individual, his/her spouse, children and parents. It does not matter whether children or parents are dependent on you or not. Under this section, health insurance premiums, contributions to the Central Government Health Scheme, and preventive health check-up can be claimed for a tax deduction. The premium paid against a health insurance policy is exempted from taxation. Hence it effectively:

• Protects yourself and your family during a medical emergency by offering coverage for hospitalisation expenses and
• Saves money for you through the income tax deductions under section 80D

Table showing Maximum Amount of Tax Deduction U/S 80D

Insured’s Details	IT Deduction under section 80D	Exemption for Preventive Health Check Up	Total Eligible Tax Deduction
Self + Family	₹25,000	₹5,000	₹30,000
Self + Family + Dependent Parents <60 years	₹25,000 + ₹25,000	₹5,000	₹55,000
Self + Family + Dependent Parents> 60 years	₹25,000 + ₹50,000	₹5,000	₹80,000
Self (>60 years) + Family + Dependent Parents> 60 years	₹50,000 + ₹50,000	₹5,000	₹1,05,000