News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
General »
 Generation/Allotment/Quoting of Document Identification Number in Notiee/Order/Summons/letter/correspondence issued by the Income-tax Department
  Who all need to file their tax returns
 How to link your Aadhaar number with your income tax return
 How tax dept is using data to increase revenue collection
 Companies seek clarity on buyback tax from finance ministry
 Will the rich outsmart the taxman?
 Income tax benefits on NPS explained in 5 points
 Why new tax surcharge has stunned foreign portfolio investors
  How to set-off short-term capital gains?
 Tax receipts growing but not fast enough for new government
 How Modi government's budgets have reduced your income tax burden

How to make full use of section 80D to save tax on health insurance?
June, 05th 2019

Health insurance is a necessity that can also help you save taxes. Generally, you can save tax on health insurance premium for a maximum of Rs 1 lakh in case you and your parents are above the age of 60 years. But did you know that you and your spouse can save more tax on health insurance premium beyond the Rs 1 lakh limit (assuming that you and your spouse earn independent taxable income)?

Under section 80D of the Income tax act, a deduction of Rs 25,000 can be claimed for health insurance premiums including preventive healthcare check-up costs for yourself, spouse and your children. Further, if you buy health insurance for your parents, you can get an additional deduction up to Rs 50,000 from your income if your parents are senior citizens. This way you can get tax-saving deduction benefit up to Rs 75,000.


If your parents below 60 years of age, then you can get an additional deduction of Rs 25,000. Hence, the maximum tax-saving deduction that you can get on buying health insurance is up to Rs 50,000.

On the other hand, if the policyholder and his/her parents' age is above 60 years, then he/she can get an additional deduction of Rs 50,000. Thus, in such a case, the policyholder can get a maximum deduction benefit for Rs 1 lakh.

How can you maximise tax benefit on the entire family's income?
If your spouse is also an earning member, then he/she can also claim deduction from income of up to Rs 50,000 by buying health insurance for his/her parents. This way your spouse can help in reducing his/her taxable income and therefore, of the family as a whole.

Rajat Mohan, Partner, AMRG & Associates said that, suppose the taxpayer is female and married, she can also buy health insurance policy covering family members and can claim deduction under section 80D for premiums paid for herself, her husband, her children, and her parents. "Hence, in a similar manner you and your spouse can buy separate health insurance policies for your family and respective parents and claim deductions under section 80D and save more tax on your overall family's income," said Mohan.

However, Archit Gupta, founder and CEO, Cleartax.in said, "You can only claim deduction under section 80D on health insurance bought for your parents and not for your parents-in-law. Also, the deduction is available irrespective of whether your parents are financially dependent or not," he added.

This way, your spouse can buy health insurance for her parents and thereby help in maximising the overall tax-saving deduction benefit on the entire family's income. You can save taxes for up to Rs 1.5 lakh or more (in case you and your parents are above the age of 60).

Here's how much a married couple can save on taxes under section 80D during a particular financial year.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions