What is Section 80D?

Section 80D allows for the deduction for money spent on maintaining your health and health insurance, and assumes great significance in your tax planning and personal finance.

What deductions are allowed u/s 80D?

  1. Money spent as Premium for Health Insurance Policy
  2. Money Spent on Healthcare of family members including parents

Money spent on maintaining a health insurance policy can be claimed under section 80D. The amount is limited by the age of the insured under the plan. These restrictions apply to people (insured under the policy) aged below 80 years :

Insured Deduction Amt. (`)
  Age Below 60 yrs. Age Above 60 yrs.
Self, Spouse and Children 25,000 30,000
Parents 25,000 30,000
Max Deduction 50,000 60,000
Opt: Preventive Healthcare* 5,000 5,000

Table 1: Medical Deduction u/s 80D

In the case of people over 80 years of age, health insurance is usually not available. Thus, the deduction of upto `30,000 is allowed even if money is spent on their treatment rather than on health insurance premium.

Therefore, a maximum exemption that you can claim under this section is upto `55,000, assuming:

  1. Your family falls in ‘below-60 age group’ (max deduction of 25,000),
  2. Your parents are aged above 60 years (max deduction of 30,000) and

*Preventive Healthcare Expenses: If your total insurance premium paid is less than the maximum allowed limits for any of the categories, then up to `5000 can be claimed for a preventive health check of your family in the financial year, within the said limits.

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Unlike traditional products, Unit Linked insurance products are subject to market risk, which affect the Net Asset Values & the customer shall be responsible for his/her decision. The names of the Company, Product names or fund options do not indicate their quality or future guidance on returns. Funds do not offer guaranteed or assured returns.

Tax benefit of `54,075 is calculated at highest tax slab rate of 30.9% (including Cess) on insurance premium of `1,50,000 u/s 80C/80CCC and health premium of `25,000 u/s 80D of the Income Tax Act, 1961. Applicable taxes will be charged extra as per prevailing rates. Tax laws are subject to amendments from time to time.

ICICI Pru iProtect Smart (UIN: 105N151V02)

ADVT No - W/II/1088/2016-17

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