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What is the tax penalty for no health insurance?

There is no tax penalty as it is not a compulsory one, But a health insurance plan will surely help you in saving tax. It is a great tax saving tool. It provides the insured substantial tax exemption under section 80D. Despite the medical benefits of health insurance, a policy reduces your annual income tax liability subject to the premium paid for the same. With section 80 D of Income Tax, you can claim an additional tax-saving benefit. You are eligible for a deduction of up to Rs. 30,000 per year, though. Please pay attention that if your annual income falls under the tax liability then it is essential for you to invest in a health insurance plan. It is not just because that you are eligible to get the one, but also to claim tax exemption to a certain level. In India, every health insurance allows you to avail tax benefits no matter it is related to your child, parents, spouse or yourself. When it comes to investing in a health insurance, you must make sure that you are investing in an adequate insurance plan. You must compare all available health insurance policies using an online insurance web aggregator that will help in choosing the best plan accordingly. There are many companies that you can consider for your purchase such as Max Bupa Health Insurance Religare Health Insurance Apollo Munich Health Insurance ICICI Lombard General Insurance Choose the best one that can go well with your needs of present and future as well.
Asked by Jatin Sharma on 31 Oct, 2018 in Health Insurance
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There is no tax penalty as it is not a compulsory one, But a health insurance plan will surely help you in saving tax. It is a great tax saving tool. It provides the insured substantial tax exemption under section 80D. Despite the medical benefits of health insurance, a policy reduces your annual income tax liability subject to the premium paid for the same. With section 80 D of Income Tax, you can claim an additional tax-saving benefit. You are eligible for a deduction of up to Rs. 30,000 per year, though.

Please pay attention that if your annual income falls under the tax liability then it is essential for you to invest in a health insurance plan. It is not just because that you are eligible to get the one, but also to claim tax exemption to a certain level. In India, every health insurance allows you to avail tax benefits no matter it is related to your child, parents, spouse or yourself. When it comes to investing in a health insurance, you must make sure that you are investing in an adequate insurance plan.

You must compare all available health insurance policies using an online insurance web aggregator that will help in choosing the best plan accordingly. There are many companies that you can consider for your purchase such as

  • Max Bupa Health Insurance
  • Religare Health Insurance
  • Apollo Munich Health Insurance
  • ICICI Lombard General Insurance

Choose the best one that can go well with your needs of present and future as well.

31 Oct, 2018
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I agree with the above-stated answer that there is no tax penalty if do not buy any health insurance. Until now, there is no compulsion been made by the government. Whereas in some countries like USA imposes tax penalty in case any citizen is not having health insurance. In India, there is no such requirement but you may get tax benefits if you invest in good health insurance suitable to your condition. Also, there is no possibility of a tax benefit if you pay premiums via cash. Payment must be made online through net banking, debit/credit cards, cheque, drafts etc in order to receive tax benefits under Section 80D of Income Tax Act. The quantity of tax benefit is decided with respect to the age of the policyholder who has taken health insurance. Policyholders (under 60 years) paying premiums for themselves, spouse, children, or parents can utilize the maximum deduction of Rs 25000 as a tax benefit for paying the health insurance premium. The tax benefit limit increases to Rs 30,000 if the premium is paid for the senior citizen (equal to 60 or more) as his/her parent. Overall, the maximum tax benefit you can avail is up to 60,000 which is related to your age.
31 Oct, 2018
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