Which of the following options is correct?

A. Premium paid by a client for health cover enjoys income tax deduction under section 80C of the Income Tax Act

B. Premium paid towards health cover earns income tax rebate under section 80D of the Income Tax Act

C. Premium paid for a health cover does not qualify for tax benefit under any provision of the Income Tax Act

D. There is no upper limit to sum assured in a health insurance policy

Answer: Option B

Solution(By Examveda Team)

Section 80D of the Income Tax Act deals with rebates. Tax Benefits of Health Insurance Under Section 80D. Health insurance premium paid for self, spouse, dependent children or parents qualifies for tax deduction up to Rs.25,000. This limit has been increased from Rs.15,000 from the previous year to Rs.25,000.