Think beyond Section 80C to save on taxes
Tax deduction section 80D qualifies for mediclaim policies. The premium, which is paid for medical insurance policy for self and family members to protect them from sudden medical expenses, comes under this section. The maximum amount allowed for exemption annually for self, spouse and dependent parents/children is R15,000. In case of a senior citizen, the maximum amount extends up to R20,000. If you are paying the premium for your parents (whether dependent or not), you can claim an additional maximum deduction of R15,000.
According to the Income Tax Act, if you are paying a premium to Life Insurance Company (LIC) or any other insurance company (approved by the Income Tax board) for the medical treatment of a Ďdependentí physically disabled person, you can avail exemption under the section 80DD. Here, the Ďdependentí should be none other than your spouse, children, parents or sibling. If the person is suffering from 40% of any disability, a sum of R50,000 can be claimed in a year. Similarly if the disability is 80%, the sum goes up to R1,00,000 per year. For initiating the process of deduction you need to submit the medical certificate issued by a medical
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