new delhi a new equity savings scheme named after rajiv gandhi will provide for income tax deduction of 50 percent for those who invest rs50000 in equity and whose annual income is less than rs10 lakh finance minister pranab mukherjee said while presenting the budget 201213budget at et budget 2012 union budget live union budget blog railway budget budget news economic survey of indiaunder dtc an additional deduction of 50000 was proposed to cover payments such as life insurance premiums premium not to exceed 5 of sum insured health insurance premiums and the tuition fee the said limit has been recommended by the parliamentary panel on finance to be raised to 1 lakh and life insurance policies where premium does not exceed 10 should also be eligible for deduction further a separate deduction of 20000 is recommended for medical insurance of senior citizens another recommendation is that the payment or reimbursement of medical insurance premium be made tax free under the existing laws it is viewed as a taxable perk