FY 2015-16; The Income Tax Deduction under Sec. 80D

The deduction under Sec 80D is also available to taxpayers who buy health insurance for their parents.

If you include your parents in your family floater plan, the deduction limit goes up to Rs. 50,000 (Rs. 25,000 + Rs. 25,000) in FY 2015-16.
If even one of them is a senior citizen, the deduction limit will be Rs. 55,000 (Rs 25,000 + Rs. 30,000).

Senior citizen taxpayers can maximize the income tax deduction when they buy a floater cover.

A cover for a senior citizen couple is about.Rs. 35,000 to Rs.40,000 a year.
In case premium is very high & both spouses have income, it will be wise to buy separate covers. This will not only give them better coverage but will help them save more income tax as the deduction limit will go up to Rs. 60,000.


"Under tax laws, the proposer, or / the person who pays the premium, of the policy gets the deduction. So, unless you buy separate covers for yourself & spouse the deduction limit stays at Rs. 30,000," says Mr. Sudhir Kaushik, CFO and Co-founder, Taxspanner.com. But, this should be done only if both spouses have taxable income. Otherwise, a simple floater cover might be more beneficial.
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