I am planning to take a health insurance policy for my parents. The policy will be in the name of my parents, but I will be paying the premiums. Will I get tax deduction on the premiums?Yes, you are eligible for tax deduction in respect of the premium paid for medical insurance of your dependent parents under Section 80D of the Income Tax Act, 1961. The condition is that your parents should be financially dependent on you. Also, the payment of medical insurance premium should be through cheque and not in cash to be eligible for this deduction. The payment should be made out of taxable income and not from exempt sources such as agriculture income or any other source of income which is exempt from tax. The maximum tax deduction for the actual amount of premium paid is Rs 15,000.
