NEW DELHI: Covid-19 not only caused mental strain on people, but also put a lot of people under financial stress given the high cost of treatment. However, having medical insurance can facilitate this to some extent. Apart from this, there are certain tax deductions that you can claim on the expenses incurred for the treatment of the covid which can help you reduce the tax payable.
If you plan to file taxes, be sure to claim these deductions.
Covid health insurance: You can claim a tax deduction of up to Rs25,000 under section 80D against the premium paid for a health insurance policy. This includes a health insurance policy taken out specifically to cover expenses related to covid-19.
â€œBesides medical insurance policies, some policies are also started by insurance companies that only cover crown related expenses. Premiums paid for these policies can also be deducted under Section 80D, at provided the premium is paid by any other mode Therefore, we can say that an individual can claim a deduction under section 80D for the insurance premium paid on the coronavirus insurance policy up to up to the amount specified in said section, â€said Kapil Rana, Founder and President of HostBooks. Ltd.
If you paid the premium for your parents’ health insurance policy, an additional deduction may be claimed. “In the event that the parents are over 60, an additional deduction of up to â‚¹50,000 can be claimed, â€said Sujit Bangar, founder of Taxbuddy.com. This can be claimed under section 80D.
Financial aid: In the event that a person has received financial assistance to cover medical costs related to covid-19 from the employer or any other person, they will be exempt from tax according to the last notification from the tax service. According to the notification, there is no upper limit on this. In the event that an employee’s family members receive an ex gratia payment from an employer, it will be exempt from tax while in the case of others, the payment â‚¹10 lakh will be tax exempt.
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