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 at maximum tax slab.

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 include your spouse, children and parents.
• The qualifying amounts under Section 80D is maximum up to Rs 15,000/- for self, spouse and children.
• A further deduction of Rs. 15,000/- can be saved when covering parents, and if the parents are Senior Citizens aged 65 years or more at any time during the financial year in which the premium was paid, then up to Rs. 20,000/- can be saved.