This is that time of the year when most of you must
be busy in exploring investment options to get the maximum tax benefits. After
exhausting the limit of Section 80C, people are looking at Section 80D i.e., health
insurance to save tax. The premium paid towards health insurance can be availed
as a deduction up to Rs 25,000, from the total income under section 80D of the Income
Tax of India. The deduction is available with respect to premiums paid for
self, spouse, and children. For parents, an additional Rs 30,000 is allowed as
deduction if your parents are senior citizen, if they are not senior citizens
yet, then Rs 25,000 deduction is allowed.
But, should one ‘invest’ in a health insurance
policy to save tax?
Current Scenario
Given the importance of health or mediclaim insurance, India is still lagging on the health insurance penetration.
This is because people are still unaware of the benefits and importance of
having a health insurance policy. Around, 80% of the people in India are not covered under any health insurance plan.