Under Section 80D of the Income Tax Act, individuals can claim a tax deduction on the premiums paid for health insurance policies for themselves, their families, and their parents. The deduction limit varies based on the age of the individuals and the type of policy. For self and family, the deduction limit is up to ā¹25,000 for individuals below 60 years and ā¹50,000 for senior citizens above 60 years.
Who is Eligible for Section 80D Deduction?
Any individual or Hindu Undivided Family (HUF) can claim the deduction under Section 80D. The deduction is available on the premiums paid for health insurance policies for:
- Self
- Spouse
- Dependent children
- Parents (dependent or not)
Deduction Limits under Section 80D
The deduction limits under Section 80D vary based on the age of the individuals and the type of policy. The following table summarizes the deduction limits:
| Category | Deduction Limit |
|---|---|
| Self and family (below 60 years) | ā¹25,000 |
| Self and family (above 60 years) | ā¹50,000 |
| Parents (below 60 years) | ā¹25,000 |
| Parents (above 60 years) | ā¹50,000 |
Verify the current figure as these limits may change over time.
Preventive Health Check-up
In addition to the deduction on health insurance premiums, Section 80D also allows a deduction of up to ā¹5,000 on expenses incurred on preventive health check-ups. This deduction is available for self, spouse, dependent children, and parents.
Old vs New Tax Regime
The deduction under Section 80D is available under both the old and new tax regimes. However, the new tax regime has introduced certain changes to the deduction limits and eligibility criteria.
The most important thing to remember is that the deduction under Section 80D is available only on the premiums paid for health insurance policies that are approved by the Insurance Regulatory and Development Authority of India (IRDAI).
Frequently Asked Questions
Can I claim deduction on health insurance premiums paid for my parents-in-law?
No, the deduction under Section 80D is available only for premiums paid for self, spouse, dependent children, and parents.
Can I claim deduction on health insurance premiums paid in cash?
No, the deduction under Section 80D is available only for premiums paid through modes other than cash, such as cheque, credit card, or online payment.
Can I claim deduction on expenses incurred on preventive health check-ups for my parents-in-law?
No, the deduction on expenses incurred on preventive health check-ups is available only for self, spouse, dependent children, and parents.
The bottom line
Section 80D provides a valuable tax deduction on health insurance premiums, encouraging individuals to invest in health insurance policies for themselves and their families. By understanding the deduction limits and eligibility criteria, individuals can make the most of this tax benefit and ensure they are adequately covered against medical expenses.
This is general information, not professional advice ā confirm the current position for your specific case before acting.
Income Tax Filing
File your ITR the right way with a professional ā from ā¹699.
Never miss an update
Get GST, Income-Tax, TDS and MCA changes in your inbox.