Section 80D

Section 80D – Deduction for Medical Insurance and Health Checkup

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Health insurance plan is as good as a tax plan. When you buy a health insurance plan then you are also doing tax planning. So today we will see about section 80D – deduction for medical insurance and health checkup.

What is Section 80D?

In India majority of the population are not covered under health insurance, to promote health planning among individual the government introduced section 80D. Buy health insurance and also save tax.

Under section 80D – Every individual or HUF can claim deduction on payment made for:

  • Medical insurance premium
  • Contribution to Central Government Health Scheme/notified scheme
  • Preventive health check-up and
  • Medical expenditure (in case of senior citizens).

Who is Eligible to Claim Deduction U/s 80D?

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Section 80D deduction is eligible for:

  • Individual (Self, Spouse, Dependent Children, Dependent Parents)
  • HUF for any of the members
  • Non-resident individual (NRI) are also eligible for this deduction.

Any other person/entity is not eligible to claim deduction, for e.g. Partnership firm, Company can not claim deduction


Amount of deduction under this section

Under the following scenario, an Individual or HUF is eligible to claim deduction:

ParticularsPremium paid ₹ Deduction under 80D ₹
Self, Spouse, childrenParents
Individual & Parents
(below 60 years)
25,00025,00050,000
Individual and family below 60 years but parents above 60 years25,00050,00075,000
Both Individual, family & Parents above 60 years50,00050,0001,00,000
HUF for any of the members25,00025,00025,000
Non-resident individual25,00025,00025,000

Medical Insurance Premium paid for Yourself & Your Family

Maximum amount of deduction on the policy taken for you & your family (self, spouse, and dependent children) is Rs. 25,000/-.


Medical Insurance Premium paid for Parents

In addition to the above, you can claim deduction for the Medical Insurance Premium paid for Parents is available to the extent of Rs 25,000 if they are less than 60 years of age, or

If your parents are *senior citizens then the deduction amount will be Rs.50,000/-.

*”senior citizen” means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year;


Expenditure for Preventive Health Check-Up

  • Preventive health check-up is like a regular health check-up conducted once or twice every year by your physician or general practitioner.
  • This (section 80D) includes a deduction of ₹ 5000 for any payments made towards preventive health check-ups. This deduction will be within the overall limit of ₹ 25,000/ ₹ 50,000 as the case may be.
  • The payment for preventive health check-up can be made in cash. Section 80D deduction can also be claimed either by the individual for himself, spouse, dependent children or parents.


Medical Expenditure on Senior Citizen (aged 60 & above)

This deduction is allowed when no medical insurance is paid for the senior citizen.

The maximum deduction amount is ₹ 50,000/-

Payment made other than cash only.


Section 80D Deduction for HUF

  • Hindu Undivided Family (HUF) can claim a deduction under section 80D for a mediclaim taken for any of the members of the HUF
  • The maximum amount of deduction is Rs. 25,000/- (less than 60 years of age). If the member is a senior citizen (60 years of age or more) then the maximum deduction will be Rs. 50,000/

Frequently Asked Questions

What is Section 80D deduction in income tax?


As per this section, an individual or HUF can claim deduction (tax benefit) on payment towards medical insurance for Self, Spouse, Dependent Children, Dependent Parents.

The limit of the deduction varies according to age.



Who Can Claim Deduction Under Section 80D?

An Individual or Hindu Undivided Family (HUF) can deduction under section 80D

Including non-resident individuals (NRI’s).


What is the maximum eligible deduction under section 80D?


The maximum deduction varies according to age and different situations:

1. Individuals can claim a maximum deduction of ₹ 25000 for insurance premium paid for self, spouse, and dependent children.

2. Individual & Parents (below 60 years) – Self,Spouse, Children ₹ 25,000 and Parents ₹ 25,000 Total ₹ 50,000.

3. Individual and family below 60 years but parents above 60 years – Self, Spouse, Children ₹ 25,000 and Parents ₹ 50,000 Total ₹ 75,000.

4. Both Individual, family & Parents above 60 years – Self, Spouse, Children ₹ 50,000 and Parents ₹ 50,000 Total ₹ 1,00,000.

5. HUF for any of the members – ₹ 25,000/-

GST paid along with health insurance premium is eligible for tax deduction under 80D

Yes, the full amount paid will be available for deduction.

For e.g

Basic Premium ₹ 18,000
CGST ₹ 1,620
SGST ₹ 1,620
_____________________
Total ₹ 21,240/-

Here you can claim a deduction of ₹ 21,240

Life Insurance paid for dependent parents comes under Section 80D?

No, Section 80D is only for Medical and health insurance premium. LIC paid for dependent parents comes under section 80C.

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