How to claim tax benefits on medical insurance premium
Medical insurance premium paid offers tax benefits under Section 80D of the income tax Act. The Finance Act, 2018 offers higher deductions for medical premiums paid for senior citizens.
No one over 60
In case no one in the family is over 60, the deduction is up to Rs 25,000. For medical insurance paid for parents below 60, deduction is up to Rs 25,000.
Hence total deduction one can claim is up to Rs 50,000.
Either parent over 60
In case only one of the parents is over 60, tax
benefit of up to Rs 50,000 for medical insurance paid for parents is allowed. Also, premium paid for family—self, spouse and children, enjoys Rs 25,000 deduction.
This makes the total deduction available up to Rs 75,000 in a year.
Eldest member in the family over 60
Where one family member— self, spouse or children— is over 60, one can claim up to Rs 50,000 in tax benefit on medical insurance. Additionally for parents over 60, medical insurance paid can fetch up to Rs 50,000 in tax benefit.
So, total deduction in this case can be up to Rs 1 lakh a year.