Save tax from health insurance premium – 80D

Deduction of maximum Rs. 40,000 can be availed through section 80D. Salaried individual restrict their tax saving investment to section 80C, but one should be aware of this section also whose investments also qualify for tax deduction. Qualifying Investments Investments made towards payment of health insurance premiums or medical Insurance Premium or Mediclaim Insurance Policy qualifies for deduction u/s 80D. Who can avail this deduction?  Individuals (may be resident or non-resident) and Hindu Undivided Family (HUF) (may be resident or non-resident) Policy on the Health of Individuals – On the health of self, spouse, parents or dependent children. HUF – On the health of any member of the family. Mode & Source of Payment Premium should be paid by any mode other than cash and out of income chargeable to tax. Quantum of Deduction Deduction for policy taken on the health of self, spouse or children or parents (less than 65 years of age)Amount of premium paid or Rs. 15,000, whichever is lesser. Deduction for policy taken on the health of senior citizensAmount of premium paid or Rs. 20,000, whichever is lesser. Additional deduction – Deduction of Rs 15,000 could be claimed, for health insurance policy taken on the health of parents (Rs 20,000 if either of parents is a senior citizen). This is irrespective of whether they’re dependent on you or not. No deductions can be claimed for in-laws. Deduction in case of partly contribution If part payment is done by self and part payment by parent then both can claim deduction to the extent of their contribution subject to maximum allowable amount but the amount should be paid directly to insurance company and through mode other than by cash. provides full fledged comprehensive tax planning service wherein we suggest the best investment and tax saving plans, which would minimize your total tax on income.

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