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I pay health insurance premium of ₹35,000 for my senior citizen parents every year. I also pay ₹30,000 as health insurance premium for myself, wife and two kids. Can I claim both amounts for tax deduction, that is ₹65,000?
Dinanath
In response to your query, as per section 80D of the Income-tax Act, 1961, (‘the Act’), a deduction shall be allowed from the total income as below:
a) The health insurance premium paid, for assessee or his family, where the deduction shall not exceed ₹25,000 and;
b) The health insurance premium paid, for assessee’s parents, where the deduction shall not exceed ₹25,000
Further, where the amount of health insurance is paid for any person specified above and who is a senior citizen (i.e. 60 years or more of age), the amount of ₹25,000 is replaced by ₹50,000.
Basis the facts given, it is being assumed that you and your wife are below 60 years of age and your parents are senior citizens. Thus, in this case, you can simultaneously claim the deduction for health insurance premium paid for your parents as well as yourself and your family as below:
The author is a practising chartered accountant
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