Tax Benefits You Get For Health Insurance

Welcome to FundooMoney, your 24X7 buddy for all your money matters. Some of us might be aware that health insurance premiums are eligible for tax deduction under Section 80D of the Income Tax Act, 1961. But what are the actual tax deductions one can avail of? We will discuss them in just a little while.

Here are some brief details of the tax benefits for paying premiums for your medical insurance policy.
 
* The maximum annual tax deduction for self, spouse and children is Rs 25,000
 
 * An additional deduction of up to Rs 25,000 is allowed for parents who are not senior citizens
 
* A higher amount of Rs 30,000 is permitted for senior citizens in the year the premium was paid.
 
So, if you are paying a health insurance premium for self, family and parents, the limit is Rs 50,000. If your parents are senior citizens, it goes up to Rs 55,000. In case your parents and you are both senior citizens, the annual tax deduction limit goes up to Rs 60,000.
 
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