Tax Saving Through Insurance: Section 80C & 80D

Section 80C (up to ₹1.5 lakh)

• Term insurance premiums qualify under 80C (subject to limits and rules).
• Other options within the same limit: PPF, ELSS, EPF, principal on home loan, etc.

Section 80D (health insurance)

• Self + family: up to ₹25,000 deduction; parents: additional ₹25,000 (₹50,000 if senior citizens).
• Preventive health check-up within overall limit.

Illustration

A family paying ₹18,000 as term premium and ₹28,000 for health floater and ₹30,000 for parents can claim ₹18,000 under 80C and ₹58,000 under 80D (subject to limits)—reducing taxable income accordingly.

Important

• Don’t buy policies only for tax saving; ensure they fit your plan.
• Pay premiums through banking channels to claim deductions.
• Rules can change; verify latest provisions before filing.