Hello and welcome to Part 15 of the Income Tax education series brought to you by H&R Block, the global leader in filing Income Tax Returns.
Today we will understand the tax benefit of taking a family health insurance cover.
A family health insurance can give you a huge tax benefit. The premiums that you pay for the health insurance for yourself and for your family members that include your spouse and dependent children and parents is eligible as a deduction from your taxable income. This deduction can be claimed up to a maximum of Rs. 55,000. This includes Rs. 25,000 for self, spouse and dependent children plus Rs. 30,000 for parents who are senior citizens i.e they have crossed the age of 60 years. For parents who have not crossed the age of 60 years the deduction is Rs. 25000.
Example: Vaibhav takes a family insurance policy and the premium amount for him and hiswife Shweta comes to Rs. 30,000 and for the parental policy it comes to Rs. 15,000 then the total amount allowed as deduction will be Rs.25,000 for Vaibhav and his wife Shweta and Rs. 15,000 for parental health insurance. Hence Vaibhav will receive a total of Rs. 40,000 as deduction from income under section 80D of the Income Tax Act for family health insurance cover.
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