Budget 2012 has done some good changes to income tax savings on medical expenses for our family members and dependent parents. Now you can save more tax on income by increasing medical expenses (Hope no one fall ill in your family, the meaning of this line is not like that). Let me explain this fact clearly. So far every employee can save yearly Rs 15000/- by paying premium to a health insurance. But in case you pay less amount of premium then rest of the amount is no use for you in case of income tax saving. But Govt has provided more ways with some other benefits to salaried people to save more money on income tax.
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Now you can get a benefit of Rs 5000/- to save tax by showing your preventive health check up report. But this Rs 5000/- amount is a part of you *) D allowable limit of Rs 15000/-. Means in case you have just paid premium of Rs 10,000 as insurance premium, the rest Rs 5000/- you can save on preventive health check up. But remember to do this check up in a reputed hospital and take proper bill.
As per Sec 80D, you can max claim up to Rs 15000/- as, medical insurance premium for your parents. Now if you parents are senior citizens then you can increase the premium by Rs 5000/- more to save tax amount of Rs 20,000/-. So as per sec 80D now you can save tax on maximum of Rs 35,000/- considering both insurance premiums.
As per sec 80DDB, you can save tax on the amount spend for the medically challenged member of your family. If the member is under 60 years of age, up to Rs 40,000/- can be exempted and in case 60+ years, the amount will be Rs 60,000/-. Earlier to that only people with disability and 65 years of age were eligible for Rs 60,000 bracket.
So, now you can even plan your family medical insurance plans with more freedom and also with higher health cover amount. And definitely save more tax.
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