Calculation of Tax Deduction Under Section 80D
Mr. Akash is 62 years old. He has a medical insurance policy on his name for which he pays premium of Rs. 36,000 annually. He also pay premiums amounting to Rs. 28,000 annually for the health insurance policy of his parents who are above 80 years of age. How much tax deduction can he get under section 80D?
Since he is a senior citizen (above 60 years), he can get a deduction up to Rs. 30,000 only for paying premium amounting to Rs. 36,000 since the maximum deduction limit is Rs. 30,000.
His parents are super senior citizens and therefore he is eligible for tax deduction of Rs. 28,000 out of the maximum possible deduction of Rs. 30,000 since the premium paid is only Rs. 28,000.
So, the total deduction that he can claim is Rs. 30,000 + Rs. 28,000) = Rs. 58,000.