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How to use Section80D to save maximum tax?

save tax under section80D

We are allowed to claim a deduction of Rs.25K from our taxable salary for the Mediclaim Insurance premium. But so many of you will be covering yourself (including spouse and kids) within Rs.10K to 15K only. You can utilize the balance benefit by purchasing an Outpatient benefit Insurance policy.
For example, let’s say your Mediclaim premium is Rs.9000. (This is the normal premium you pay for 5 lacs cover for self-+spouse+2kids.
You can now buy additional Outpatient expenses insurance policy for Rs.16K. This gives you additional two benefits
1) Outpatient expenses benefit from Rs.25K.
2) 30% tax saving on Rs.16K additional premium. (assuming you fall in 30% tax bracket)

Hence the total benefit by paying Rs. An additional 16K premium is Rs.30500.

Susheel Agarwal

Susheel Agarwal

Susheel is a certified Happiness Coach, which enables him to help organizations develop healthy and happy workplaces. Years of extensive in-depth research by interacting with various leaders of happy & not so happy organizations, attending several Happiness and Leadership programs along with his own authentic experiences, Susheel has been successful in establishing a happy workplace. He currently works as a Thought Leader and a Passionate Coach, educating corporate leaders to do the same.

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