Having a health insurance policy does not only help cover your medical expenses, it also gives you relief from tax liabilities. Section 80D of the Income Tax Act 1961 allows taxpayers to claim deductions for health insurance premiums paid for insuring self, spouse, dependent children and parents. The maximum tax deduction that can be claimed under this section is Rs. 25,000. If any of the persons specified is a senior citizen, the maximum deduction amount is Rs. 50,000.
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