Health Insurance Tax Benefits

Health insurance tax benefits are great for your financial planning. Health insurance plans, including family floater plans that covers your spouse, children and dependent parents, makes you eligible for tax benefits.

Tax exemptions are valid only on the health insurance premium and not on additional charges, such as GST, service charge, etc. If your health insurance is comprised of critical illness cover add-on, then the premium paid for the add-on can also be claimed for tax deduction.

As per the income tax section 80D, health insurance premiums paid in cash are excluded from the tax exemption clause. All other modes of payment such as demand draft, cheque, net banking, debit and credit cards are eligible for tax exemption. Health insurance premiums should be paid by only a taxpayer as the tax benefits cannot be claimed by a third party.