Did You Know? Look after parents, get more tax deduction

Did You Know? Look after parents, get more tax deduction

The taxman nods his approval if you look after your parents. Tax laws reflect a changing society and this particular deduction shows recognition of the way contemporary Indian families live. There is a tax break for extending a health insurance cover to your parents even if they are not dependent on you.

You can claim deduction of up to Rs15,000 on behalf of your parents if your parents are below 65 years of age. This deduction is applicable over and above the Rs15,000 deduction that you are entitled to as an individual under section 80D for health insurance taken for yourself. So, in all, you can claim up to Rs30,000.

If parents are senior citizens

If you get health insurance for your parents, who are senior citizens, you can claim an additional deduction of up to Rs20,000, apart from the Rs15,000 you get on your own cover. So, in total you can claim up to Rs35,000.

If you are a senior citizen

However if you are a senior citizen, which means that you can claim up to Rs20,000 as deduction on your own policy, and are funding your parents’ health plan, then your total deduction shoots up to Rs40,000.