What are the deductions available in respect of a medical insurance premium?
Medical insurance premium paid qualifies for deduction under Section 80D as follows: Premium paid upto Rs 15,000 (in a financial year) is eligible for deduction from gross total income. In case of senior citizens, the limit is Rs 20,000. Assessees who pay medical insurance premium for their parents can claim an additional deduction of Rs 15,000 under Section 80D. In other words, an individual who pays medical insurance premium for himself and his parents will be eligible to claim tax benefits to the extent of Rs 30,000 i.e. Rs 15,000 (for himself) and Rs 15,000 (for his parents).
