Do you pay medical premium?

In case you pay medical premium for yourself and your family, then you can claim a tax deduction under Section 80D.

The Income Tax Act splits the deduction under two heads. 

1. Medical Premium paid by you for your parents: Maximum available is Rs. 15,000. If your parents are senior citizens, then Rs. 20,000.
2. Medical Premium paid by you for yourself, your spouse and children: Maximum available is Rs. 15,000. If you or your spouse are senior citizens, then Rs. 20,000.

An example: In case you spent 25000 on your parent’s medical premium (who are senior citizens) and 13000 on your rest of family then you can avail deduction of Rs. 33,000. (Rs. 20,000 for parents, and Rs. 13,000).

In general, the advice is to take this deduction for both tax and welfare reasons. You never know when medical coverage might be needed.

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