Health Insurance is important for your health and also an effective way that saves your tax. Generally, if you and your parents are more than 60 years old, you can save tax on health insurance premium of up to a maximum of Rs 1 lakh. But do you know that you and your wife can save tax more than the limit of Rs 1 lakh on health insurance premium (assuming that you and your wife earn different taxable income).
Health insurance purchased by an employer, including parents, wives and children, can be claimed for the deduction under section 80D of the Income Tax Act on payment of premium. Where the taxpayer’s age is less than 60 years and senior citizen parents, who are more than 60 years old, in this case 75,000 rupees can be claimed for tax exemption. You can claim for tax exemption only if the institution has not paid the full premium of the policy.
A taxpayer can claim for income tax exemption for his life partner and dependent children, 25,000 for parents and an additional premium of Rs 25,000 for parents. The maximum income tax benefit from insurance premium payment is Rs. 1 lakh under Section 80D of the Income Tax Act.
On the basis of age, under the maximum limit of 25000 or 30000 rupees, a benefit of 5000 rupees is available as a Preventive Health Check-up. For example, if you pay a premium of Rs 20,000 under Mediclaim and you make a health check up to Rs 5,000, in that case you can take advantage of the entire 25,000 under Section 80D. Many large hospitals also offer the Preventive Health Checkup Package.