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.
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.