Section 80D – Medical Insurance

Section 80D – Medical Insurance

Any amount in any given year, for the payment of medical insurance from the total income by any individual or HUF (Hindu undivided family), is liable to claim for deduction under Section 80D.

The advantage of the deduction is available not only for self but, one can take advantage of medical insurance policy to cover spouse, children, parents, or your dependents.

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Eligibility To Claim Under Section 80D?

  • Any individual or HUF taxpayer can claim deduction on behalf of senior citizens whose premium is paid for medical insurance.
  • Insurance can be availed for by an Individual or HUF
  1. Self
  2. Spouse
  3. Dependant parents
  4. Dependent children
  •  No company can claim deductions under section 80D

Eligibility Of Payments As A Deduction

Any individual or HUF can claim deductions under section 80D for the given payments.

  • Any premium or amount paid for medical insurance for self, children, or dependent parents in any mode other than cash.
  • Any expenditure incurred in the event of preventive health checkup of the medical insured person.
  • Any medical expenditure which is incurred on the medical facilities of any senior citizen (above 60 age ) who is not covered under any health insurance.
  • Any expense made towards the central govt. health scheme (CGHS), or any government scheme.

Amount Of Deduction Under Section 80D

  • The amount of deduction that is allowed under Section 80 D is Rs25000 in a single financial year and the same amount can be claimed under any given financial year.
  • The senior citizens can claim deductions of the amount of RS.50,000 in any given financial year.
Who can avail of deductions? Amount of Premium paid (Rs)   The deduction is available under section 80D (Rs)
For Self, family, children Parents
Any Individual and parents below 60 years 25,000 25,000 50,000
Any Individual and family below 60 years but parents above 60 years 25,000 50,000 75,000
Both individual, family, and parents above 60 years 50,000 50,000 1,00,000
Members of HUF(Hindu undivided family) 25,000 25,000 25,000
Non-resident individual (NRI) 25,000 25,000 25,000

 1- For Individuals

  • The individuals can claim deductions up to Rs 25,000 for medical insurance premiums paid for self, spouse, children, or dependent parents.
  • An additional amount of deduction can be claimed which is up to 25,000 for the insurance which covers parents under 60 years of age and up to RS 50,000 for parents above 60 years of age.
  • If both the taxpayer and the parents are above the age of 60 years then they can claim deductions up to RS 1,00,000.

 2- For HUF( Hindu undivided Family)

  • Deduction by HUF can be claimed under section 80 D for any member of HUF.
  • The amount of deduction can be RS 25,000 if the insured member of the family is under 60 years whereas, RS 50,000 can be claimed for the member whose age is above 60 years.

 3- Understand this with an example

Ankita is aged 35 years, and his father is aged 65 years. Ankita has taken a medical cover for herself and his father for which she pays an insurance premium of Rs 30,000 and Rs 35,000 respectively.

What Would Be The Maximum Amount We Can Claim By Way Of A Deduction Under Section 80D?

Ankita can claim up to Rs 25,000, for the premium paid on her policy, and the policy taken for her father, who is a senior citizen can claim up to Rs.50,000. In the given case, the deduction is Rs 25,000 and Rs 35,000. Therefore, the total deduction that she can claim for the year is Rs 60,000.

Important Points To Remember

  • A tax deduction can be availed on any health insurance plan or family plan. premium paid towards the health insurance for self, spouse, children, or dependent parents.
  • No claim is eligible for a medical premium paid for a working child. can only claim deductions when a male child is unemployed till the age of 25 and for the female unemployed child till she is unmarried.
  • Premiums paid for the health insurance of siblings are not counted for deduction under Section 80 D.
  • Any mode of payment is accepted except payment in cash
  • No document is required for claiming deduction while filing ITR. however, for the sake of records, one should keep the receipt of payment as proof of payment.

Nikita Dhyani

Nikita Dhyani is a Content Writer at Ionic Digitech. A passionate content writer and has been using her content writing skills to develop various content related to financial and business-related topics. She has done BAJMC (Bachelors in media and mass communication and journalism) from Graphic Era University. Her specialties include - Content creation, Content development, Media managing, Communications skills.

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