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.
|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|
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.
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|
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:
|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.|