To promote awareness and access to comprehensive health insurance plans to the masses, the government offers significant tax-deductions on the premium paid towards the health insurance policy.
Accordingly, the premium paid towards your health insurance policy is eligible for tax deduction under Section 80D as per income tax act 1961 . The quantum of tax deductions under your medical insurance plan is as below:
a) If you purchase health insurance coverage for your spouse, children and yourself, you can save up to Rs 25,000 as tax deductions.
b) By including your parents (below 60 years of age) under your health insurance coverage, you can avail of additional tax deductions up to Rs. 25,000, to take your total tax savings up to Rs. 50,000
c) In case your parents are ageing 60 years or above, the total amount of tax savings may increase up to Rs. 75,000
d) You can also avail of a deduction of Rs. 5000 towards payment of preventive health check-up of your spouse, dependent children, parents and yourself
| Covered Individuals | Exemption Limit | Health Check up Exemption Limit | Total Deduction under Section 80D |
|---|
| Self, spouse and dependent children | Rs 25,000 | Rs.5,000 | Rs. 25,000 |
| For self and family including parents (all under 60 years of age) | Rs. 25,000 + Rs. 25,000 | Rs.5,000 | Rs. 50,000 |
| For self, family including senior citizen parents | Rs. 25,000 + Rs. 50,000 | Rs. 50,00 | Rs. 75,000 |
| For self and family members including parents (all above 60 years of age) | Rs 50,000 + Rs. 50,000 | Rs. 50,000 | Rs. 1 Lakh |
*
Note: The maximum deduction for preventive health check-ups, of up to Rs 5,000 shall be allowed for payment made towards such health check-up of your spouse, dependent children, parents and self, under Section 80D
4Tax benefits as per prevailing tax laws, subject to change
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