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.