Section 80D

All deductions under Section 80D can be claimed for medical insurance premium for both critical and top-up health plans. Both individual and Hindu Undivided families can claim the same. The taxpayer can claim deduction for health insurance plan not only for self but for other member of the family, as applicable under Section 80D.

The eligible payments under Section 80D :

  • Any premium paid for medical insurance of dependent parents, spouse, or children.
  • Expenses incurred in preventive check-up
  • Deduction can be claimed for contribution to Central Government Health schemes
  • Claiming deduction on medical insurance premium will not be applicable if amount paid through cash

The Deductions available under Section 80D :

Expenses Self, Spouse, Dependent Children and Parents are NSC Self, Spouse, Dependent Children and Parents are SC Self, Spouse, Dependent Children and Parents are SC
Medical Insurance and Preventive health check-up Self, Spouse and Dependent Children (Prevent Check-up limit Rs.5000) Rs 25000 Rs 25000 Rs 50,000
Parent Rs 50,000 Rs 50,000 Rs 50,000
Medical Expenses Self, Spouse and Dependent Children NA NA Covered within the medical insurance and prevent health check-up for self, spouse and dependent children of amount Rs.50,000
Total Limit NA Covered within the limit of medical insurance and prevent health check-up of Rs.50,000 Covered within the medical insurance and prevent health check-up for parent of amount Rs.50,000
Parent - Rs 50,000 Rs 75000 Rs 1 Lakh

The Eligibility Tax Benefits under Section 80D :

  • Self
  • Spouse
  • Dependent children
  • Parents

Hindu Undivided Families (HUF) can also claim deductions under this section. Premium payments of any member in a HUF can be used for tax deduction subject to upper limit as per the act.

Section 80D Deduction Limit :

According to Section 80D, a taxpayer can claim deductions on health insurance premium paid for parents, family, and spouse. Apart from deductions on expenses related to health check-ups.

Cases Deduction amount for Self, Spouse, and Dependent Children Deduction amount for Parents Total
For Self and Parent below 60 years of age Rs 25000 Rs 25000 Rs 50,000
Self below 60 years and parents above 60 years Rs 25000 Rs 50,000 Rs 75,000
Self and Parents above 60 years of age Rs 50,000 Rs 50,000 Rs 1 Lakh

Example :

For instance, if a 60 years old individual is paying annual premium of Rs 32000. Apart from that, you are also paying Rs 35000 premium for your parents, who are 80 years old. As per Section 80D of Income Tax Act, you are eligible for:

  • Tax deduction of Rs.32,000 on Rs.32,000 paid as a part of health insurance premium for you and your dependents.
  • Tax deduction of Rs.35,000 for your parents (senior citizens) out of the overall payment of Rs.35,000.
  • Total tax deduction that can be claimed is Rs.67,000 out of the overall premium payment of Rs.67,000.

Difference between Section 80 D and Section 80C :

Section 80D Section 80C
Maximum limit Rs 65000 subject to conditions. Maximum Limit Rs 1.5 Lakh subject to conditions.
Section 80C includes investments made in a wide range of financial instruments such as small savings schemes, Life insurance premium, mutual funds etc Section 80D is meant exclusively for deductions on health insurance premiums paid.

Frequently Asked Questions

  • Tax claim dedications on premium paid for working children is allowed?
    No, deductions can only be claimed if the premium is paid for dependent children.
  • Can I claim health check-up deductions for all dependents?
    Yes, you can claim health-check up deductions up to Rs 5000, inclusive of all dependents in the family.
  • Can I claim tax deduction on service tax also?
    Service taxes are paid over and above the premium amount and collected by respective agencies. This amount cannot be claimed as deductions.
  • Can senior citizens claim deductions under Section 80D?
    Section 80D states that senior citizens can get a higher deduction of up to Rs.50,000 for payment of premium towards medical insurance policy and the limit is Rs.25,000 for non-Senior Citizens.
  • What if my spouse and parents are not dependent on me? Can I claim tax deduction in that case also?
    You can claim deductions in these cases.