Income Tax Return – Most of the people who pay income tax are aware of the deduction i.e. tax exemption available under section 80C and they also use it. If you do not know about this, then let us go into the news below in detail…
Most of the people who pay income tax are aware of the deduction available under section 80C ie tax exemption and they also use it. In this section of the Income Tax Act (Income Tax Act, 1961), the benefit of deduction is available on investment up to a maximum of Rs 1.5 lakh.
But there are many such provisions in the Income Tax Act, which can help you save tax even after the 80C limit is met. One such provision is of section 80D. You can avail separate tax deduction on the premium of medical insurance through this section. To take full advantage of this deduction, it is necessary to have complete information about it.
The benefit will be available only in the old tax regime-
You want to avail tax deduction under section 80D even after the limit of section 80C of the Income Tax Act is over. But for this you have to opt for the old tax regime. The benefit of this section is not available in the new tax regime.
What is the maximum deduction in section 80D?
Under Section 80D, the benefit of income tax deduction is available on the amount paid for paying the premium for health insurance policy during a financial year. The tax payer gets this benefit not only on the premium paid for his health insurance, but also on the premium paid for the health insurance of his wife and children. Not only this, if you pay the premium for the health insurance of your parents, then you can claim a separate deduction under 80D only.
The benefit of deduction will be available according to the age-
The amount of deduction you can claim under section 80D depends on the age of the person for whom the premium is paid for the health insurance. If taxpayers below the age of 60 years pay the premium for health insurance for themselves, their spouse and children, then under 80D, they can claim a maximum deduction of Rs 25,000 in a year.
A further deduction of Rs 25,000 can be availed on paying the premium for health insurance for parents who are below 60 years of age. That is, if the taxpayer, spouse and parents are all below the age of 60 years, then a deduction of up to Rs 50,000 in a year can be claimed under 80D.
This is how you will get deduction of 1 lakh in a year-
For senior citizens i.e. people of 60 years or more age, the deduction limit in 80D becomes 50 thousand instead of 25 thousand. That is, if the age of a taxpayer is more than 60 years and he pays health insurance premium for his senior citizen parents as well, then he can avail deduction of up to Rs 50,000+50,000 i.e. a total of Rs 1 lakh in a year. That too in addition to the deduction of Rs 1.5 lakh available under 80C. Isn’t it a matter of benefit.
