Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

Be Healthy, Wealthy & Wise: Get Tax Benefits from Mediclaim

Author: AN Shanbhag Sandeep Shanbhag/Wednesday, June 27, 2018/Categories: Tax, Expert View

Be Healthy, Wealthy & Wise: Get Tax Benefits from Mediclaim

While maintaining good health should be the primary focus of every individual, given the very increasing cost of healthcare in our country, buying a health insurance becomes a must too. Apart from ensuring financial preparedness at the time of medical emergency, health insurance also provides an addition benefit of tax deduction. Last week in this column, we dealt with the deductions available for individuals and HUF under section 80C and 80CCC of the Income Tax Act with a limit of Rs 1,50,000 under various schemes. This week, we turn our attention to section 80D of the Income Tax Act — Mediclaim.

Mediclaim: Sec. 80D

Health insurance premiums paid by an individual for himself and his family and by an HUF for any of its members, along with expenses incurred on preventive health check-up is deductible up to Rs 25,000. In the case of single premium health insurance policies having cover of more than one year, the deduction shall be allowed on proportionate basis for the number of years for which health insurance cover is provided. For senior citizens, the limit is higher at Rs 50,000 if they are not covered by health insurance. In view of this, it is advisable not to cover your parents in your family policy if they are senior citizens. The premium for family policy depends on the age of the oldest member of the family besides the sum assured. Getting independent covers for each family member can sometimes be cheaper.

The premium is required to be paid in any mode other than cash, except for preventive check-ups.

Before entering into a contract with an insurer, compare the premiums offered by the insurers satisfying your needs.

If you find that you will do well by porting (= shifting) your policy to another insurer you can do so 45 days prior to the renewal of the existing policy and have to complete the process within 30 days of the renewal date. Moreover, the new insurer may not be interested in taking you under its wings, unless it is absolutely sure that the health condition of all your family members is fine. You may do well to shift over to another plan suiting your needs of the same insurer.

Many individuals either have not understood the importance of preventive check-up or having understood, neglected it because of the cost. Now, this special deduction u/s 80D would prompt one to go to doctor regularly. The facility should not be misused by obtaining a fake certificate from a friendly doctor.

Mediclaim is recommended to all, taxpayer or otherwise, rich or poor, in view of the high cost of hospitalisation. Unfortunately, cover related with any stay abroad requires a separate policy.

It is better to buy a health insurance policy when you are young as there are fewer comprehensive health insurance policies available for elders.

Some policies offer a cumulative bonus of 50 per cent for every claim-free year. Consequently, even if it is a Rs 10 lakh floater policy, the sum insured doubles at Rs 20 lakh if there are two claim-free years.

Many of the employees find that their employer provides medical cover for them as well as their family members. Medical inflation is growing at such a fast rate that this cover may not be adequate. It is advisable to either buy a top-up policy or a fresh policy, which can come into play after coverage under employer's policy has been exhausted. A fresh individual health policy is advisable as there won't be any employer-provided medical cover when you shift job to an employer who does not provide the cover.

Next time we shall examine additional deductions available under additional Sections.

The authors, A.N. and Sandeep Shanbhag, are leading financial advisors. Write to them at wonderlandconsultants@yahoo.com

Print Rate this article:
No rating

Number of views (491)/Comments (0)

AN Shanbhag Sandeep Shanbhag
AN Shanbhag Sandeep Shanbhag

AN Shanbhag Sandeep Shanbhag

Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free