Section 80D – Deduction for Medical Insurance and Health Checkup

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).

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

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

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Amount of deduction under this section

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

Particulars	Premium paid ₹		Deduction under 80D ₹
	Self, Spouse, children	Parents
Individual & Parents (below 60 years)	25,000	25,000	50,000
Individual and family below 60 years but parents above 60 years	25,000	50,000	75,000
Both Individual, family & Parents above 60 years	50,000	50,000	1,00,000
HUF for any of the members	25,000	25,000	25,000
Non-resident individual	25,000	25,000	25,000

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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/-.

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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;

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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.

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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.

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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/

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Frequently Asked Questions

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