why taxpayers must have insurance? please explain as much as possible

why taxpayers must have insurance?

please explain as much as possible

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Expert Solution

Taxpayers are always looking for options to reduce the amount of tax paid. Insurance is one such way that helps in reducing the tax effectively. Tax-deductible insurance is Health insurance. The amount that can be deducted depends on the amount spent by you and the amount paid by the insurance company.

The premium that a person pays for Life Insurance or Health Insurance policy can be deduced, that is, it provides tax benefits, under Section 80D of the Income-tax Act. This benefit can be availed for self, for parents, spouse, or for children. But this benefit depends on the age of the people involved. In the case of health insurance, an amount of Rs25,000 can be deducted by non-senior citizens and 30,000 in the case of senior citizens.

In some cases, the Car Insurance premium can also be treated as tax-deductible if the car is used for a business purpose rather than personal usage. Apart from all these, its always good to have insurance as it provides you financial assistance in the wake of unexpected situations.

keosha answered 2 months ago

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