Tax Benefits offered by Arogya Sanjeevani Policy
In times when healthcare costs are staggeringly high, a health insurance policy works as a safety cover for a family’s savings. Having a health policy helps a family attain savings in more than one way. It also allows policyholders for tax benefits on the premium paid, as per Section 80D of Income Tax Act, 1961.
The government has been spearheading efforts to ensure people have access to good health coverage. The Arogya Sanjeevani Health Insurance Policy, which is a standard health insurance policy launched by the Insurance Regulatory and Development Authority of India (IRDAI) in April 2020, aims to provide a basic and affordable health cover for people.
The Arogya Sanjeevani Policy offers a host of benefits for the policyholders. Firstly, it comes with sum insured with Rs 5 Lakh which provides a basic financial cushion for a family’s medical needs. It includes various features such as:
- Hospitalisation cover up to sum insured
- AYUSH Treatment up to sum insured
- Pre-Hospitalisation Medical Expenses Cover for 30 days
- Post-Hospitalisation Medical Expenses Cover for 60 days
- Cataract Treatment up to 25% of SI or Rs.40,000/- per eye, whichever is lower
- Ambulance cover up to specified limit
- Cover for pre-existing disease subject to waiting period of 48 months
- Cumulative Bonus for the claim-free policy year
- Lifelong renewability feature
- Individual policy and family floater option
- Furthermore, this policy too enables the insured to claim tax deduction under section 80d.
Tax Benefits under Arogya Sanjeevani Policy
Indian citizens having taxable income are responsible for paying income tax to the Government of India. However, there are certain provisions that allow taxpayers to claim tax deductions. For instance, individuals and HUFs who pay the premium for their respective health insurance policy are eligible for tax deductions under Section 80D.
Tax deduction under section 80d is applicable in case of the following scenarios:
- If you opt for Arogya Sanjeevani Health Insurance Policy which covers you, your spouse and dependent children, you are eligible for a deduction of up to Rs 25,000. It is applicable only if the insured persons are aged below 60 years.
- If you or your spouse is above 60 years, then you get a higher deduction of Rs 50,000 on the premium you pay for self, spouse and dependent children covered in the policy. If your parents who are below 60 years of age are covered in the same policy, you can avail an additional deduction of Rs 25,000 in a financial year. Your total deduction comes out to be Rs 50,000.
- If your parents are senior citizens and are covered in the policy, you are eligible to get a deduction of Rs 50,000 in a financial year. This makes your total deduction up to Rs 75,000.
Consider the below table to understand the various deductions applicable:
|Premium Paid under Arogya Sanjeevani Policy||Scenarios||Total Deduction|
|For Self, Spouse and Dependent Children||All insured persons are below 60 years of age||Rs 25,000|
|For Self, Spouse, Dependent Children and Parents||Self, spouse, dependent children and parents all are below 60 years||Rs 25,000 + Rs 25,000 = Rs 50,000|
|For Self, Spouse, Dependent Children and Parents||Self, spouse and dependent children all are below 60 years. Parents are above 60 years of age||Rs 25,000 + Rs 50,000 = Rs 75,000|
|For Self, Spouse, Dependent Children and Parents||Spouse and dependent children are below 60 years. Self (assesse) and parents are above 60 years of age.||Rs 50,000 + Rs 50,000 = Rs 1,00,000|
Things to Note
Policyholders under Arogya Sanjeevani Policy must keep in mind the following points that will help them avail the tax benefits without any hassle.
- To avail the tax benefits, the premium must be paid through payments modes like cheque, debit/credit cards or net banking. Policyholders should avoid payment of premium through cash as the tax benefits will not be available then.
- The deduction amount of Rs 50,000 for senior citizens in above scenarios is available for the category of senior citizens that includes super senior citizens aged 80 years and above.
- Tax deductions are not applicable if the premium is paid on behalf of working children, siblings or any member of extended family.
- Tax deductions under Section 80D are subject to the Income Tax Act including amendments in the tax laws.
- Protect your family from the burden of unexpected medical emergencies. Choose Arogya Sanjeevani Policy, Religare Health Insurance and avail tax deduction under section 80d of I-T Act.
**Disclaimer: Information above is just for reference. Kindly read T & C of policy thoroughly
Do refer IRDAI guidelines for tax exemption conditions