The premium you pay for your health insurance policy or mediclaim is eligible for tax deduction under Section 80D. Here are the details of the tax deductions available for medical insurance policies in specific cases.
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.
We hope you found this useful. Do share with us and others on this channel your tips related to health insurance by writing in comments section. For more such actionable personal finance information, subscribe to our channel. Also, visit our website, download our mobile app and stay connected with us on Instagram, Pinterest and Slideshare.
