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What is the maximum tax exemption amount under Section 80D for medical insurance premiums for self/spouse/children?

A) 25000
B) 60000
C) 40000
D) 1,00,000

Answer :

The question is about the maximum tax exemption amount under Section 80D for medical insurance premiums. Section 80D of the Income Tax Act in India allows individuals to claim deductions on premiums paid for medical insurance. This is applicable to insurance taken for yourself, your spouse, children, and parents.

Maximum Deduction Limits:

  1. For Self, Spouse, and Children:

    • The maximum deduction you can claim is ₹25,000 if the insured is below 60 years of age.

  2. Additional Deduction for Parents:

    • If you are paying premiums for your parents' medical insurance, you can claim an additional deduction of ₹25,000 if your parents are below 60 years.
    • If your parents are senior citizens (aged 60 years and above), the deduction increases to ₹50,000.

Example:

  • If both the taxpayer and parents are below 60, the maximum deduction would be ₹25,000 + ₹25,000 = ₹50,000.
  • If the taxpayer is below 60 but the parents are above 60, the deduction would be ₹25,000 + ₹50,000 = ₹75,000.
  • If both the taxpayer and parents are above 60, the maximum deduction is ₹50,000 + ₹50,000 = ₹100,000.

Answer:

  • Based on this information, if the scenario allows for the maximum possible deduction under all conditions, the correct answer for the maximum exemption is D) 1,00,000.

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