The maximum that one can save under Section 80D (Rs 25,000) for those paying 5.20 percent, 20.8 percent and 31.2 percent tax is Rs. 1,300, Rs 5,200, and Rs 7,800 respectively. This will be over and above anything you can save under Section 80C of the Income Tax Act.
Health insurance Tax Benefit for Senior Citizens
Health insurance premiums for senior citizens are always on the higher side. Insurance companies may also be disinclined towards providing medical insurance for those who are old or suffer from pre-existing ailments.
However, Budget 2018 came with some relief for senior citizens who have high medical expenses and are unable to buy health insurance policy due to pre-existing ailments or can't afford to pay high premiums.
The Budget has amended Section 80D which allows a deduction for medical expenses incurred on senior citizens. This deduction can be claimed by the senior citizen himself/herself or by his/her children if the children are incurring medical expenses for their senior citizen parents.
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What documents do I require to claim the deduction?
The only documents required to claim the deduction is your premium payment receipt and your insurance policy copy which shows the name of the family members and their relation and age. In case of premium paid for parents policy, the proposer should ask for 80D certificate from the insurance company by providing the payment details in his name.