Income Tax Return – Most of the people who pay income tax are aware of the deduction i.e. tax exemption available under section 80C and so they additionally use it. For those who have no idea about this, then let us go into the news below in detail…
Most of the people who pay income tax are conscious of the deduction available under section 80C i.e. tax exemption and so they additionally use it. In this section of the Income Tax Act (Income Tax Act, 1961), the good thing about the deduction is available on investments up to a most of Rs 1.5 lakh.
However, there are lots of such provisions in the Income Tax Act, which can assist you to save tax even after the 80C restriction is met. One such provision is section 80D. You can avail of separate tax deductions on the premium of medical insurance using this section. To take full benefit of this deduction, it’s crucial to have full details about it.
The profit shall be available only in the previous tax regime-
You need to avail of tax deduction under section 80D even after the restriction of section 80C of the Income Tax Act is over. However, for this, you have got to decide on the outdated tax regime. The good thing about this section will not be available in the new tax regime.
What’s the most deduction in section 80D?
Under Part 80D, the good thing about income tax deduction is available on the quantity paid for paying the premium for health insurance coverage throughout a monetary year. The taxpayer will get this profit not only on the premium paid for his health insurance but in addition on the premium paid for the health insurance of his wife and children. Not solely this, those who pay the premium for the health insurance of your parents, then you can claim a separate deduction under 80D only.
The good thing about deduction shall be available according to age-
The quantity of deduction you can claim under section 80D is determined by the age of the individual for whom the premium is paid for the health insurance. If taxpayers under the age of 60 years pay the premium for health insurance for themselves, their partner and their kids, then 80D, can claim the most deduction of Rs 25,000 in a year.
An additional deduction of Rs 25,000 can be availed on paying the premium for health insurance for parents who’re under 60 years of age. That’s if the taxpayer, partner and parents are all below the age of 60 years, then a deduction of up to Rs 50,000 in a year can be claimed under 80D.
That is how you’ll get a deduction of 1 lakh in a year-
For senior residents i.e. people of 60 years or extra age, the deduction restriction in 80D turns into 50 thousand as a substitute of 25 thousand. That’s if the age of a taxpayer is greater than 60 years and he pays the health insurance premium for his senior citizen parents as well, then he can avail a deduction of up to Rs 50,000+50,000 i.e. a complete of Rs 1 lakh in a year. That too as well as to the deduction of Rs 1.5 lakh available under 80C. Isn’t it a matter of profit?