As FY 2024-2025 is nearing an end, it’s important for the policyholders to understand and explore different ways to optimise their tax liabilities beyond section 80C of the Income Tax Act when opting old tax regime. While most taxpayers are aware of the tax benefits associated with section 80C, many of them might have still not explored the several other sections that could have significantly reduced the tax outgo.
In this piece, we explore some of such tax-saving opportunities in detail.
Section 80D
Under this section, the policyholder can claim deductions while filing the investments for the premiums paid towards the health insurance plans for themselves, spouse, parents and children. However, the deduction amount differs for self, spouse and children (go up to Rs 25,000), parents (below the age of 60 years), and senior citizens (60 years or above the age of 60 years – could go up to Rs 50,000).
Rakesh Goyal, Director at Probus, said, “Senior citizens are generally eligible for higher deductions as compared to the younger ones under this section. In this case, if Rohit (a 32-year-old IT professional) opts for a health plan for himself, his spouse and his senior citizen parents, he can make a total claim worth Rs 75,000 under this section. In addition to this, deduction claims can be made up to a specific amount spent on preventive health checkups. Section 80D is considered to be one of the most effective options beyond 80C to optimize one’s tax liabilities.”
