Here are the details of tax benefits in Budget 2015 when you purchase health insurance. These are applicable for financial year 2015-16.
- Deduction under section 80D for self, spouse, dependent children – Rs 25,000 (preventive health check up of Rs 5,000 included)
- Deduction under section 80D for parents (who are senior citizens) – Rs 30,000 ((preventive health check up of Rs 5,000 included). This deduction is allowed for both dependent and non-dependent parents.
- In case your parents are super senior citizens (more than 80 years old) and are uninsured you can claim a maximum of Rs 30,000 as deduction in your income towards their medical expenses.
Therefore you stand to claim a total deduction of Rs 55,000 when you buy health insurance for yourself and your parents and save significant tax. The amount to be considered for this deduction is the pure premium amount exclusive of service tax.
The insurance purchased by you should be approved by IRDA (Insurance Regulatory & Development Authority). Beginning Assessment Year 2014-15 this deduction will also be allowed on contribution towards health schemes of Central & State Governments.