How does Tax Benefit work?

For e.g. A premium of Rs. 15,000 is fully deductible under Section 80D of the Income Tax Act. You would save Rs. 4635 on your tax payable.

Key Points to note

• Premium paid for medical insurance qualifies for rebate under Section 80D of the Income Tax Act.
• Section 80D benefit remains over and above Rs.1 Lakh benefit of 80C (ELSS, Principal component of home loan, Life Insurance etc
• Tax benefit goes to the person making payment, Persons covered can be his/her dependant (spouse, children)
• The qualifying amounts under Section 80D is maximum upto Rs 15,000/-.
• A higher amount of upto Rs 20,000/- is permitted if the person, for whose health insurance the premium was paid, was aged 65 years or more at any time during the financial year in which the premium was paid.