Both my wife and I are in our sixties and have taken a health insurance plan recently. Can both of us claim tax deduction for the premium paid on this policy?
-Gurudas Roy, Kolkata
According to the Income Tax Act, individuals can claim tax deduction on premiums paid towards health insurance under Section 80D. The deduction can be availed on premium payment for self, spouse, dependent children and parents, subject to prescribed conditions.
In case of senior citizens, during a financial year, the deduction is Rs.30,000, which includes Rs.5,000 towards preventive health check–up. As you are paying the premium for yourself and your wife, only you can claim the maximum deduction of a combined Rs.30,000 for both of you. Remember, you do not get this tax benefit if the premium is paid by cash.
