Save Income Tax with Health Insurance

familyFloater

Under Section 80D of the Income Tax Act you can get an annual deduction for the payment of your medical insurance premium.  You can save up to Rs. 12,000 per annum through medical insurance plan for your family.

All individuals are eligible for this deduction. The amount must have been paid using the taxpayer’s income chargeable to tax.

In case an individual is taking the deduction, the medical insurance policy can be take in the name of any of the following:

– The taxpayer or the spouse

– Parents or dependent children of the taxpayer.

Breakup :

1. The maximum deduction for self, spouse and children is Rs 15000/-

2. Additional deduction upto Rs 15000/- for parents.

3. Higher amount of Rs 20000/- in case parents are age 65 or above.

So, you can save up to Rs. 12,000 per annum in taxes if you avail of this deduction.

What are the eligible investments?

All medical insurance policies, Mediclaims and critical illness rider premiums are eligible for the 80D deduction up to the specified amount.

Please remember that the premium towards the policy cannot have been paid in cash.

Advertisements

One thought on “Save Income Tax with Health Insurance

  1. Pingback: LIC may not issue infra bonds « V-Secure Investments

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s