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You can continue to claim deduction from taxable income in India for medical insurance premium paid even if you are outside India or qualify as a non-resident in India
Under Section 80D of the Income-tax Act, 1961, an individual may claim deduction for medical insurance premium paid in India as follows:
a. Medical insurance premium paid by the individual for the benefit of self, spouse and dependent children up to Rs25,000; and
b. Medical insurance premium paid by the individual for the benefit of parents of the individual up to Rs25,000.
In case the medical insurance premium has been paid for the benefit of a senior citizen (aged 60 years or more), the deduction available is up to Rs30,000. Budget 2018 had proposed to increase the limit for deduction from Rs30,000 to Rs50,000 in case of senior citizens with effect from 1 April 2018. Given the above, you can continue to claim deduction from taxable income in India up to the monetary limits specified above for medical insurance premium paid even if you are outside India or qualify as a non-resident in India.
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