Tax Deduction You Get For Your Health Insurance Premium

  Author: Jai Prakash

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? Here is a brief view of the tax deductions that are available with medical insurance policies.

Tax deduction amounts for health insurance 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.  After Budget 2018, a higher deduction amount of Rs 50,000 is now permitted for senior citizens in the year the premium was paid. This is up from Rs 30,000.

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, the tax deduction for health insurance premium goes up to Rs 75,000. In case your parents and you are both senior citizens, the annual tax deduction limit goes up to Rs 1 lakh.

Clearly, health insurance not only provides financial protection to your family from major medical expenses but also provides the tax deduction which only works to your advantage.