1. Implementation of Direct tax code has again been deferred and won’t be applicable from 1st April, 2012.
2. Service tax rate increased from current 10% to 12%. This would mean life insurance premium will go up.
Currently it is necessary that in order to derive the relevant tax benefits on a life insurance policy (u/s 80C and u/s10) the annual premium payable could not exceed 20% of the actual capital sum assured. This threshold has been reduced to 10% for policies issued on or after April 1, 2012. Benefit for existing policies will continue. This change is not applicable for pension plans.
1.The overall limit u/s 80D has not changed. Within the existing limit for deduction allowed for health insurance, Rs.5000 deduction for preventive health checkup is allowed. But what is called as preventive health check-ups not yet defined by FM.
2.As per Section 80D, one can claim tax relief on health insurance premium of up to Rs 15,000 on health insurance premium paid for self, spouse and children.
One can also claim tax deduction of additional Rs 15,000 if he/she is paying premiums for parents’ health policy. If the individual (or parents) are senior citizens, this limit goes up to Rs 20,000. The Budget – 2012 has lowered the age to 60 years.
Source – economictimes.com