5 Ways Medical Expenses Help You Save Taxesby Rizwan Khan Professional Interior Designer
People experiencing sedentary lifestyles and chaotic routines are likely to be affected by various diseases. With health conditions deteriorating, the costs of health care are escalating each year. Well, you should know that individual medical plans can help you save taxes to a substantial extent. Buying a health insurance policy is among the top priorities for the individuals. As per the guidelines prescribed by the income tax department, investing in medical insurance results in the reduction of the taxes. It is for this reason, that buying a health insurance policy can protect your family from financial liabilities and save taxes at the same time. Browse through the medical insurance policies online and buy the plan that gives full coverage to your family. You should be starting as early as possible so that you can save more. Here, you will come to know how a medical insurance can help you save taxes.
Covering regular expenses on medicine
As for employees, they can get reimbursements for expenses incurred in purchasing medicine from the company. This value can be as much as INR 15,000, which is exempted from taxation. This expense may have taken place in the firm of medical check-ups, pharmacy bills, consultation fees with the doctors and so on. These expenses may be incurred on any member of the family of the employee. It is necessary to submit the proof, in order to claim the amount from the employer. This can help you save a good amount of money paid as tax.
Check-ups for preventive purposes
Any preventive tests for medical purposes involve certain expenses. You can claim deductions on the charges that you pay for these purposes for your family members. This amount can be up to INR 5,000. In order to maximize this amount, several pathological laboratories provide health check-ups for flat INR 5,000. The original invoice from the laboratory has to be submitted to the employer.
Disabled dependents can claim maintenance or costs for medical treatments
People who are disabled, or dependent on others can be physically and mentally painful. These people can claim a fixed deduction of INR 50,000, as per section 80DD of the Income Tax Act, 1961. The dependent person may be your child, parent, spouse, brother or sister. In case the disability is greater than 80%, you may claim a deduction up to INR 1 lakh per annum from tax. It is necessary to produce a medical certificate from a government hospital, certifying the disability. This certificate needs to be periodically renewed.
Expenses on the treatment of dependents who have specified diseases
In case your dependent family members suffer from any kind of disease, along with a level of disability crossing 40%, you can claim a deduction. You should be looking out for the best health insurance plans in India so that it keeps you secured against these costs. Section 80DDB of the Income Tax Act has a provision for this deduction and it may include specified diseases, such as chronic renal failure, AIDS, cancer, and certain other diseases. Therefore, it is necessary to get a medical health insurance policy and control your costs.
The reputed companies have designed a variety of health insurance plans that help you to save taxes. You should get the plans customized as per your needs.
Created on Sep 13th 2018 14:53. Viewed 777 times.