Deductions Under
Section 80D
What is Section 80D?
Section 80D of the Income Tax Act, 1961 offers deduction for money spent on health insurance and maintaining your health, and is significant for your tax planning and personal finance.
What deductions are allowed u/s 80D?
- Money spent as premium for health insurance policy
- 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. Below 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 |
25,000 | 50,000 |
| Parents | 25,000 | 50,000 |
| 50,000 | 1,00,000 | |
| 5,000 | 5,000 | |
Table 1: Medical Deduction u/s 80D
In case of people over 80 years of age, health insurance is usually not available. Thus, the deduction of
Therefore, the maximum deduction that you can claim under this section is
- Your family falls in ‘below-60 age group’ (max deduction of
25,000), - Your parents are aged above 60 years (max deduction of 50,000)
*Preventive Healthcare Expenses: If your total insurance premium paid is less than the maximum allowed limits for any of the categories, then up to `5,000 can be claimed for a preventive health check of your family in the financial year, within the said limits.
Health Insurance Tax Benefits for Senior Citizens
In India, senior citizens can avail of the health insurance tax* benefits under Section 80D of The Income Tax Act, 1961. These benefits can be claimed by the senior citizen themselves, or their children if they are paying for the health insurance of their senior citizen parents.
Section 80D offers tax deductions on health insurance premiums of up to a maximum limit of ₹ 25,000 in a financial year. You can claim deductions for a policy bought for yourself, your spouse and your dependent children. If you invest in health insurance, you can get deduction up to ₹ 25,000 under Section 80D for yourself and your family (₹ 50,000 if age of insured is 60 years or above) and up to ₹ 25,000 (₹ 50,000 if age of insured is 60 years or above) for your parents. Further, you can also claim a tax deduction of ₹ 5,000 per annum on preventive healthcare for your family.
Important Points to Remember
Below are a few things to note when availing of tax deductions under Section 80D:
- The benefits under Section 80D are in addition to the tax benefits available under Section 80C
- Hindu Undivided Families (HUFs) can also claim tax deductions under The Income Tax Act, 1961
- It is important to carefully review the tax exemptions included in your health insurance policy
- To qualify for the deduction, the premium must be paid through a non-cash method, except for preventive health check-ups
- Paying a health insurance premium in full offers tax benefits for the entire duration of the insurance policy
- It is important to be up to date with the latest tax laws at all times, as they are subject to change
COM/DOC/Apr/2023/244/2848
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