Income Tax Benefits with Life Medical Insurance Schemes

By | January 24, 2020

If you’re an only employee in a house then you should made a policy to purchase a life insurance to give money to his family. There are many insurance policies in our country and different plans based on their age and enjoy income tax benefits of your insurance policy.

Sections under which you can claim tax deduction:

 A tax payer can get amount of 150000 under section 80C for every year and it will give 25000 of medical insurance of under section 80D and made a payment of a health checkup. Senior can get insurance of 25000 in name of a senior citizen and it can be calculated as

Taxable income = Gross total income-Tax deduction u/s 80C to 80U

Important things to know before section 80C to 80U:

Under chapter VIA, no deductions shall be allowed from following income

Long term gains of family

Under section 111A short cum gains can be covered

Under section 115BB money from winning horses, races

115A, 115AB, 115AC, 115BBA and 115D

Under section 80C an individual can claim fund.

Premiums of Life insurance

Funds in public provident funds

National savings certificate

Two children fees

Deposit scheme in post office

Tax deductions exemptions persons

Tax deduction can be done in name of a person whose is paying income tax and tax is paid in name of a person in family members and no deductions can be done to persons of other family members

Holding period to claim deduction

There is a minimum time for holding a deposits to claim deductions u/s 80C

For ULIP of UTI or LIC: 5 years should be minimum holding period

Life insurance policy: 2 years should be minimum holding period

Senior citizen scheme: 5 years should be minimum holding period

Restrictions:

Based on policy there are certain restrictions in any policy and there will be an assumption if you donate money to any organizations.

Policies issued before 31st March 2012 should have 20% tax deduction

Policies issued before 1st April 2012 should have 10% tax deduction

Policies issued before 1st April 2012 should have 15% tax deduction

Important things to know before claim money under 80D:-

Cost of medical bill paid by mode of cash

Any scheme notifies by central government

Health checkup money

Money paid on all health bill

Tax deductions exemptions persons for 80D:

Tax deduction can be done in name of a person whose is paying income tax and tax is paid in name of a person in family members and no deductions can be done to persons of other family members

Limitations under section 80D:

Maximum limit up to 25000:

In this insurance will be given up you will be 25000 in case of preventive health checkup for his dependent for children/spouse

50000 will be given in case of his death to his family members and it is small in case of elder persons.

Hindu undivided family:

Medical insurance will be increased in case of a paid in name of senior citizens and medical occurred on health of a senior citizen person.

Category: Tax

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