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Your
expense of medical insurance can also give you the opportunity to save some more tax. Under section 80D of the income tax act,
you can get the tax benefit for the insurance premium. Well, there are other tax saving
options under section
80C, But section
80D gives you additional tax benefit. You can get a tax deduction of up to
Rs 65,000 under the section 80D. Like any other tax saving
option, there are some limitations with section 80D.
Section 80D: Income Tax Saving Limit
You can claim
a tax deduction of health insurance premium. You can claim a tax
deduction for the premium payment of your family and parents
separately. But it is subject to an upper limit.
Tax Saving On The Health Insurance Premium of Your Family
You can get
a tax deduction of maximum Rs 25,000 on the health insurance premium for
self and family. If you are a senior citizen, you can claim tax deduction on
the premium of up to Rs 30,000.
Tax Saving On The Health Insurance Premium of Your Parents
In Addition to above you can further
claim a tax deduction for the insurance premium of your parents. The maximum
limit for this deduction is Rs 25,000. If the parents
are a senior citizen, the maximum limit is 30,000.
Section 80D: Preventive Health Check Up Tax Deduction
There is another tax benefit under section 80D. You can also claim a tax deduction for the expense of health check up. The maximum deduction allowed under this provision is 5,000. Health check up can be Section 80D: Who Is Eligible For Tax Benefit
Any taxpayer
can avail the tax deduction under section 80D. The medical insurance premium
can be of any or all of these family members.
·
Self
·
Wife/Husband
·
Dependent
Children
·
Parents
The cumulative
insurance premium payment of all the family members should not exceed the
prescribed limit.
If An HUF is
claiming a tax deduction under section 80D. It can add the insurance
premium of any family member, subject to the maximum limit.
Maximum Tax Saving Because Of the Section 80D
Tax saving because of the section 80D is different to different situation. Have a look at the table.
Health Check Up | Total Deduction | ||||
| You and your family | 25,00 | 5,000 | 30,000 | ||
| You and your family | 25,000 | Parents | 25,000 | 5,000 | 55,000 |
| You and your family | 25,000 | Senior citizens Parents | 30,000 | 5,000 | 60,000 |
| You (Senior citizen) & Family | 30,000 | Senior citizen Parents | 30,000 | 5,000 | 65,000 |