The correct answer is B.
Section 80D of the Income Tax Act allows a deduction of up to Rs. 50,000 in a financial year for the premium paid for a health insurance policy for self, spouse, and dependent children. The deduction is available for both individual taxpayers and Hindu Undivided Families (HUFs).
The premium paid for a health insurance policy for parents is also eligible for a deduction under Section 80D, but the limit is lower at Rs. 25,000.
The deduction under Section 80D is available only for policies that meet certain conditions, such as the policy must be issued by a registered insurance company and it must cover at least hospitalisation expenses of Rs. 2 lakh.
The deduction under Section 80D can be claimed while filing the income tax return for the financial year in which the premium was paid.
Option A is incorrect because Section 80C allows a deduction for investments in certain specified schemes, such as provident fund, public provident fund, and life insurance policies.
Option C is incorrect because Section 10(10D) allows a deduction for interest on loans taken for certain specified purposes, such as education and housing.
Option D is incorrect because Section 80E allows a deduction for interest on education loans.