From FY 2011-12, For senior citizens, the qualifying age reduced to 60 years and exemption limit raised to Rs 2.50 lakh.Similarly very senior citizen category is created whose age is 80 and above. The income tax site (http://law.incometaxindia.gov.in/DIT/Xtras/taxcalc.aspx) also specifies the same for income tax calculations for various Assessment years including for AY 2012-12 (FY2011-12)
The salary earners can also enjoy impressive tax benefits on premium paid for a health insurance policy to self, wife, children, parents.
The income tax benefits on mediclaim policies under Sec.80 D are as follows:
1. Upto Rs 15000 for premium paid on the policy providing coverage to you and your family. If this is provided free, then it is not eligible.
2. Upto Rs 15000 for premium paid on the policy providing coverage to your parents, Rs 20000 in case the parents are under senior citizen category. It is enough if one is under senior citizen category among parents.
Thus one can avail a maximum tax benefits of upto Rs 35000 on purchase of a health insurance for self and family. For claiming the tax deduction the premium payment has to be either by cheque or credit card. Cash premium payment does not qualify.
The same is applicable for FY2012-13 also.
C.R. Venkata Ramani