Are Spouses Allowed to Split Health Insurance Premium to Claim Tax Benefit Under Section 80D?

For a couple who has brought a health insurance on a floater basis that covers a joint family, the premium may seem too large to be born by one spouse. Due to the high amount of premium under such cases, the policyholder may, firstly, not be able to pay the amount in one go. Or secondly, the premium may be higher than the maximum on which he/she can enjoy tax benefits under Section 80D of the Income Tax Act, 1961.

In such cases, a couple may be interested in splitting the premium among themselves and make partial payments individually, which is quite possible. As per the income tax experts, income tax laws do not put any restriction on splitting the payment of premiums between two persons for a single policy to save on taxes. However, the experts did not affirm if separate tax certificates can be issued to two people splitting premiums for a single policy or not.