Prajna Capital - An Investment Guide

HEALTH, THOUGH important, is by far the most neglected aspect when it comes to health expenses. Notwithstanding the rising medical expenses - thanks to the hectic lifestyle - not many people in the country today have adequate insurance covers. While the public may not be concerned, government ensures that citizens protect themselves and their dear ones with adequate medical cover by giving tax breaks on expenses incurred for getting health insured. Premium paid up to Rs 15,000 on a medical insurance policy is exempted from tax under section 80D of the Income Tax Act. A tax-payer paying premium toward insurance cover of dependant parents shall be entitled to an additional tax benefit of up to Rs 15,000. If the parents are senior citizens, then this limit gets enhanced to Rs 20,000. Thus, the maximum tax benefit that a taxpayer can now avail by insuring the health of his/her entire family (including dependant parents) is Rs 30,000 or Rs 35,000 as the case may be. MEDICAL EXPENSES S...