Deduction u/s 80 D eligibility on term plan premium with critical illness rider
9 months ago
I paid max life term insurance premium of Rs 38000 (including 4000 for critical illness rider), I want to know the amount of eligibility of deduction us 80 D is it 38000 or 4000.
A.Dear Client,
If the term insurance policy offers a health rider and you have opted for the rider, then the premium on such a rider can be claimed for deduction from taxable income under Section 80D of the Income Tax Act 1961. However, the premium amount of the term insurance would need to be claimed under Section 80C of the Act. The premium payable against a Term Insurance plan comes under the purview of Section 80C of the Income Tax Act. Under Sec. 80D, Health Insurance, and Critical illness plans are considered for tax savings. So, a premium of Rs 38000/- paid against the Term Insurance Policy shall come to u/s.80C and a Premium of Rs.4000/- paid for critical illness rider come to u/s.80D of the Act.
If the term insurance policy offers a health rider and you have opted for the rider, then the premium on such a rider can be claimed for deduction from taxable income under Section 80D of the Income Tax Act 1961. However, the premium amount of the term insurance would need to be claimed under Section 80C of the Act. The premium payable against a Term Insurance plan comes under the purview of Section 80C of the Income Tax Act. Under Sec. 80D, Health Insurance, and Critical illness plans are considered for tax savings. So, a premium of Rs 38000/- paid against the Term Insurance Policy shall come to u/s.80C and a Premium of Rs.4000/- paid for critical illness rider come to u/s.80D of the Act.
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A.Dear client,
The deduction under section 80D of the Income Tax Act is available for premiums paid towards health insurance policies, including critical illness riders. However, it is essential to note that section 80D provides separate deductions for health insurance premiums for self, family, and parents.
the maximum deduction available under section 80D for health insurance premiums is as follows:
For self, spouse, and dependent children: Up to Rs 25,000 per year
For parents (either self or parents are above 60 years of age): Up to Rs 50,000 per year
In your case, since the premium includes Rs 4,000 for the critical illness rider, the eligibility for deduction under section 80D would be the amount of the health insurance premium, which is Rs 38,000 (excluding the critical illness rider premium).
So, the amount eligible for deduction under section 80D would be Rs 38,000. However, please keep in mind that tax laws may change over time, and it is always advisable to consult a qualified tax professional or refer to the latest tax regulations to ensure accurate and up-to-date information for your specific situation.
The deduction under section 80D of the Income Tax Act is available for premiums paid towards health insurance policies, including critical illness riders. However, it is essential to note that section 80D provides separate deductions for health insurance premiums for self, family, and parents.
the maximum deduction available under section 80D for health insurance premiums is as follows:
For self, spouse, and dependent children: Up to Rs 25,000 per year
For parents (either self or parents are above 60 years of age): Up to Rs 50,000 per year
In your case, since the premium includes Rs 4,000 for the critical illness rider, the eligibility for deduction under section 80D would be the amount of the health insurance premium, which is Rs 38,000 (excluding the critical illness rider premium).
So, the amount eligible for deduction under section 80D would be Rs 38,000. However, please keep in mind that tax laws may change over time, and it is always advisable to consult a qualified tax professional or refer to the latest tax regulations to ensure accurate and up-to-date information for your specific situation.
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