Health insurance not only protects your family but can also reduce your taxable income. Section 80D of the Income Tax Act allows a deduction for health insurance premium and certain medical expenses.
Who Can Claim 80D?
Individuals and Hindu Undivided Families can claim the deduction. The benefit is available only under the old tax regime, so check your regime before planning.
Deduction Limits
- Self, spouse and dependent children: up to ₹25,000
- If any of them is a senior citizen (60 or above): up to ₹50,000
- Parents: an additional ₹25,000, or ₹50,000 if parents are senior citizens
- Maximum total deduction can go up to ₹1 lakh in many cases
Preventive Health Check-Up
Within the overall limit, you can claim up to ₹5,000 for preventive health check-ups. This can be paid in cash.
Conditions to Follow
- Pay the premium through non-cash modes such as net banking, UPI, card or cheque.
- The deduction is for the amount paid during the financial year.
- For senior citizens with no health insurance, some medical expenses may be claimed within limits.
Example
If you pay ₹22,000 premium for your family and ₹30,000 for your senior citizen parents, you may claim ₹22,000 plus ₹30,000, totalling ₹52,000, within the allowed limits.
Tip
Keep premium receipts and payment proof. The rules and limits may change, so confirm the latest figures on the official Income Tax portal or with a tax professional.
Frequently Asked Questions
Can I claim 80D for parents who are not dependent on me?
Yes. The deduction is for premium you pay for your parents, whether or not they are dependent.
Is 80D available in the new tax regime?
No, it is generally not available in the new regime.
Can I claim both 80C and 80D?
Yes. They are separate deductions with separate limits.
