Save tax by opting medical insurance – Sec 80D

Section 80D of the Income Tax Act provides for a deduction of Rs. 15,000 to an assessee, being an individual or a HUF. The deduction is allowed for making a payment to effect or keep in force an insurance on, –

  • the health of the assessee or on the health of the wife or husband, dependent parents or dependent children of the assessee where the assessee is an individual.
  • the health of any member of the family where the assessee is a HUF.

In case, the assessee or any other member of the family, on whose health the insurance has been effected or kept in force, is a senior citizen, the deduction allowed is Rs. 20,000. The existing provisions also have the requirements that the payment must be through a mode other than cash and should be out of the taxable income of the assessee. Additional deduction of Rs 15,000 could be claimed, on any payment made to effect or keep in force an insurance on the health of his parent or parents (Rs 20,000 if either of your 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. Tax Returns for Financial Year 2010 -11 (March 2011) has started. Request you to please visit or mail us Form16/ Salary Certificate and details of other income, at . We would take it from there to file your return of income. provides complete online taxation solutions for individuals ( Tax Returns + Tax Support + Tax Planning ) – please see this – Services Offered. Providing Complete Online Tax Solutions for Individuals, Not Just Returns.

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