InvestorQ : Is payment towards medical insurance premium for self, spouse eligible for the deduction? What is the maximum tax deduction limit?
Purvesh made post

Is payment towards medical insurance premium for self, spouse eligible for the deduction? What is the maximum tax deduction limit?

Answer
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Tanu Shukla answered.
1 year ago


Yes, You (as an individual or HUF) can get deduction u/s 80D on the insurance of self, spouse and dependent children. The amount of deduction available shall be a maximum of Rs 25,000/-. Also, if you have taken insurance of your parents who are below 60 years, you’re eligible for another deduction of Rs 25,000/-. So, in total, you’re eligible for a deduction of Rs 50,000/- under this section. But if your parents are senior citizens, i.e. above 60 years, maximum deduction on insurance premium paid is Rs 50,000/-.
The above deduction is not a flat deduction but limiting one. For example, if you’re paying the premium of Rs 30,000 for self and spouse, you’re eligible for a deduction of Rs 25,000(maximum deduction) or Rs 30,000 (premium paid) whichever is less, i.e. Rs 25000/-.
Similarly, If insurance premium paid for senior citizen is Rs.45,000 deduction allowed would be Rs 45,000 (premium paid) or Rs 50,000 (max deduction) whichever is less., i.e. Rs 45,000/-