Under the Income Tax Act of 1961, if you are under 60 years of age, you can get a tax exemption of up to ₹25,000 on your health insurance policy premium.
2. Senior citizens are allowed a maximum tax deduction of ₹50,000 on their policy premium.
3. If the premium is paid for both individuals and parents under 60 years of age, the maximum deduction allowed is ₹50,000.
4. If the premium is paid for an individual and family below 60 years, but parents above 60 years, the maximum deduction allowed is ₹75,000.
5. If both individuals and parents are above 60 years, the premium is subject to the maximum tax deduction of ₹1 lakh.
6. Preventive health check-ups are allowed an additional deduction of ₹5,000. However, this cannot exceed the maximum deduction threshold of ₹25,000 or ₹50,000, depending on the individual insured in the health policy.
7. These deductions are provided under section 80D of the Income Tax Act, 1961.