Written by CA Pankaj Chhabra – 
& Megha Jain –
Are you worried about high medical expenses eating away your hard-earned income?
Section 80D of the Income Tax Act, is offering a tax deduction benefit to every individual who is opting for health insurance plans for self and their families.
Keep reading to find out how you can make the most of this little-known provision and lower your overall tax liability.
Section 80D
Section 80D of Income Tax Act, 1961, allows tax deductions for expenses incurred on medical insurance premiums. The section covers not only the taxpayer, but also their spouse, children, and dependent parents.
The maximum amount that can be claimed as a deduction under this section is Rs. 25,000 for self, spouse and children, and an additional Rs. 25,000 for dependent parents (if the insured is below 60years of age and increases to Rs. 50,000 if they are above 60years of age).
Preventive health check-ups – Section 80D also includes an additional deduction of Rs 5,000 for any payments made towards preventive health check-ups.
Related article: Deduction Under Section 80C
Documents needed for Preventive Health Checkup Tax Deduction:
The income tax department does not require any receipt for claiming this deduction while filing the income tax return. However, it is advisable to retain the proof of payment of insurance premium in your tax file.
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Deductions Under Section 80D
| Basis of Difference | Below 60 years of age
(Resident & non-resident) |
Above 60 years of age
(Resident) |
Above 60 years of age
(Non-resident) |
| Self, spouse and dependent children | Rs. 25,000 | Rs. 50,000 | Rs. 25,000 |
| Dependent parents | Rs. 25,000 | Rs. 50,000 | Rs. 25,000 |
| Preventive health check | Rs. 5,000 | Rs. 5,000 | Rs. 5000 |
| Maximum deduction | Rs. 55, 000 | Rs. 1,05,000 | Rs. 55,000 |
Who Can Claim Deductions Under Section 80D?
Every resident or non-resident Individual or HUFs taxpayer can claim these deductions for-
- Self
- Spouse
- Dependent children
- Dependent parents
However, the higher limit of deduction available to senior citizens is not available in case of non-resident senior citizens.
Points to be remembered for claiming 80D deduction
It is essential for taxpayers to keep in mind the various limits and conditions outlined in the section, in order to make the most of this provision and avoid any mistakes while filing their taxes.
- In order to claim the deduction, the taxpayer must provide the insurance company’s name and policy number to the Income Tax department.
- The premium paid must be by any mode other than cash.
- It is important to note that the deduction can only be claimed for medical insurance policies, not for critical illness or personal accident policies. Also, the premium should be paid for a policy that is issued by an insurer, which is registered with the Insurance Regulatory and Development Authority of India (IRDAI).
- Payments made on behalf of working children, siblings, grandparents or any other relative are not included in deductions under section 80D
- In case a payment is made in parts by both you and your parent, both of you can claim a deduction to the extent paid by each.
Group health insurance premium provided by the company is not eligible for deduction.
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