Tax involved in Mediclaim return amount


#1

Hello,

If person receives expenses which were incurred during his hospitalization from concern mediclaim authority, then amount which he has received is taxable or do he has to pay tax against received amount?
If yes, then %ge of tax?


#2

Hi,

Claim settlement receiving from mediclaim policies are not taxable. These are the expenses incurred by you for treatments, and the settlement received is therefore not taxable. As it is in the nature of a re-imbursement of the expenses,in my view, there is no element of income in the claim that you’ve recd from the company and thus should be tax-free.


#3

Thanks, If I take health insurance of premium amount Rs. 3000 per year for which I would get coverage of Rs. 300000 medical expenses for that financial year, Will I be in position to deduct 3000 from taxable income for resp financial year? if yes, then what is the max limit for FY 2015-16 which one can invest in health insurance?


#4

Hi Ashwin,

Most of the time a Health Insurance pay-out is only a reimbursement of the expenses that you have incurred. It is not deemed to be income or profit for the individual. Therefore it is not subject to taxation. This is irrespective of which year you made the claim and when you were reimbursed. So, you don’t need to include it as part of your taxable income.

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Cheers,
BB Expert


#5

Hi Ashwin,

If you have invested in Health Insurance for yourself and your family (this includes your spouse, parents and dependent children), then you can avail a good amount of tax benefits. As you might know, you can get a tax deduction of Rs. 25,000 on your Health Insurance premium under Section 80D. If the insured is a senior citizen (above 60 years of age), he/she can claim a tax exemption of Rs. 50,000. This was Rs. 30,000 earlier. For uninsured super senior citizens (more than 80 years old) medical expenses up to Rs. 50,000 is allowed as deduction. An individual can save as much as Rs. 75,000 a year by buying Health Insurance for his family.

Looking for Health Insurance? Click here.

Cheers,
BB Expert