Winning Bizness Desk

Mumbai. As the current financial year approaches its end in March, taxpayers should begin their tax-saving measures. One of the key ways to do so is through investments, which can be mentioned while filing the Income Tax Return (ITR). Those opting for the old tax regime should take full advantage of the remaining days of this month to maximize their savings.

Tax Deduction Under Section 80D

One of the most effective tax-saving strategies is utilizing Section 80D of the Income Tax Act, 1961. Under this provision, taxpayers can claim deductions on health insurance premiums paid for themselves, their families, and their parents. If you have purchased or renewed a health insurance policy during the financial year 2024-25 (assessment year 2025-26), you are eligible for tax deductions. While filing your ITR, keep the policy documents handy, though there is no requirement to upload them.

Tax Benefits Based on Age

Individuals below 60 years can claim a tax deduction of up to ₹25,000 on health insurance premiums. Senior citizens, however, are eligible for a deduction of up to ₹50,000. If you are paying premiums for your parents' health insurance, you can claim an additional deduction based on their age—₹25,000 if they are below 60 years and ₹50,000 if they are 60 years or above. In total, you can claim tax deductions of up to ₹75,000 under this provision.

Additional Deductions for Parents' Insurance

A separate deduction of up to ₹25,000 is available for paying health insurance premiums for parents below 60 years. If your parents are senior citizens (60 years or above), this deduction increases to ₹50,000. Thus, if both you and your parents are senior citizens, you can claim a total deduction of up to ₹1 lakh under Section 80D, provided you are paying health insurance premiums for both yourself and your parents.

Maximize Your Tax Savings Before the Financial Year Ends

With only a few days left in the financial year, now is the time to make the necessary tax-saving investments. Opting for health insurance not only secures your family's future but also provides significant tax benefits. Ensure that all necessary premiums are paid before March 31 to take full advantage of these deductions while filing your ITR.