Tipping Point: How can you claim tax benefit on a multi-year health policy?

Representative image
If your health insurance is coming up for renewal, check with the insurer if it will accept premiums for two years or more. Usually, when you pay for two-three years in advance, the insurer offers a discount. But how do you claim a tax deduction on such multi-year policies? The tax department allows deduction under Section 80D over multiple years. If you pay premiums for two years, you can claim 50 per cent deduction each year spread over two financial years. Usually, the deduction availble is mentioned in the certificate that the insurer issues.

 


Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel