Tax Exemption on Health Insurance Premium for Parents
As per the domestic tax law, an individual can avail the benefits of tax deduction up to Rs. 15000, if he/she is paying medical insurance premium for his/her parents. In case of parents who are 60 years or more i.e. senior citizen, the deduction is up to Rs. 20000. And in such cases, the payer of last premiums is not considered for any process. So, even if your parents are pensioner, you can pay their medical insurance and get tax rebate.
250+ Plans
18 Insurance Companies
₹ 5 Lakh
Coverage @ ₹ 10/day
7 Lakh+
Happy Customers
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
- Home
- Health Insurance
- Senior Citizen Health Insurance
- Tax Exemption on Health Insurance Premium for Parents
According to the norms stated under the “income from other sources”, a person is liable to pay tax on the money he receives from any individual for any fiscal, if the aggregate value exceeds Rs.50, 000. But in case of relatives, especially for blood relations like mother, the money received is not counted taxable.
In case of gift transactions, even your relative will not be liable to pay the taxes till you are not a minor assess. You need to inspect other formalities like stamp duty and documentation process in this transaction.
If you have availed any home loan for a residential property then you can even claim tax benefit in such a case. The quantum of tax rebate depends on property type i.e. self-occupied property (SOP), let out property (LOP) or deemed to be let out (DLOP).
Deduction in case of SOP is Rs. 1.5lakh per financial year and for LOP/DLOP you can claim the entire rental value/deemed rental value for deduction. If borrowed from specified lenders, you can claim for deduction under section 80C subjected to overall cap if Rs. 1lakh for any of the property type i.e. SOP/LOP/DLOP
Written By: PolicyBazaar - Updated: 23 July 2021
Search
Recent Articles
Health Insurance Companies
Aditya Birla Health Insurance
Bajaj Allianz Health Insurance
Bharti AXA Health Insurance
Care Health Insurance
Cholamandalam Health Insurance
Digit Health Insurance
Edelweiss Health Insurance
Future Generali Health Insurance
IFFCO Tokio Health Insurance
Kotak Mahindra Health Insurance
Show More Insurers
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
You May Also Want to Know About
Top Maternity Insurance Plans
Maternity or pregnancy is an important phase of life, and one needs to prepare in advance to embrace parenthood. Though rearing a child is an expensive affair and may require good financial backup to meet the requiremen...
Health Insurance Claims Ratio- Things You Should Look Before Buying Health Insurance
There has always been a doubt in customers mind about whether the private company will keep its side of the bargain i.e. it will settle the claim or not. A customer spends premium annually which will cover his medical expenses but there’s always ...
Best Health Insurance Plans for Senior Citizens in 2021
Considering the increasing percentage of medical inflation in India, it has become an absolute necessity to buy adequate health insurance for your loved ones. And if they are your elderly pare...
Covaxin vs. Covishield vs. Sputnik vs. Pfizer: Which one should you get?
Covaxin vs. Covishield vs. Sputnik vs. Pfizer: Which one should you get? Covaxin vs. Covishield vs. Sputnik vs. Pfizer, the speculation continues regarding the difference between the efficacies of these COVID-19 Vaccines against the Coronavirus. If...
Here’s the Difference between Health Insurance and Mediclaim
Here’s the Difference between Health Insurance and Mediclaim Imagine you’re looking for a job change. You get an interview call for a job. What will be your plan of action? Will you get your resume ready and prepare for the interview or you wi...