Ahead of the Union Budget 2021-22, General insurers have suggested that the government increase the tax deduction limit under Section 80D of the Income-Tax (I-T) Act. This, they said, would provide fresh impetus to people to buy a comprehensive health cover.
They have also sought tax benefit to those opting for home insurance under 80C of the I-T Act. Under Section 80D, one can get tax deduction of up to Rs 25,000 for health insurance premiums for individuals below 60 years, and up to Rs 50,000 for individuals above 60 years. One can claim tax deduction of up to Rs. 25,000 for premium paid towards health insurance of their parents. In case parents are senior citizens, the tax deduction that can be claimed is up to Rs. 50,000.
