Buying health insurance policies for ourselves or family members is one way to save tax. However, an individual who is supporting his/her parents can also save tax by buying health insurance for them.
The 2018 Budget amended Section 80D of the Income Tax Act allows deduction for medical expenditure incurred on senior citizens. This deduction can be claimed by the senior citizen himself/herself or by his/her children, if the latter are incurring medical expenditure for their senior citizen parents.
This amendment is a tax saving measure and allows to claim deductions against the high interest insurance premiums. The main condition to claim the deduction for medical expenditure incurred is that the senior citizen should not be covered under any health insurance policy.
Here is all you need to know to claim deductions under this amendment:
Eligibility for Deduction
There are two eligibility…
