The Section 80D of the Income Tax Act allows a taxpayer to claim deductions of up to ₹25,000 for individuals and ₹50,000 for senior citizens. 80D tax deductions include medical insurance premiums for self, parents, dependent children, and spouse. The idea is to encourage people to secure themselves and their families against unexpected medical expenses.
Section 80D tax benefit is is your financial partner designed to help you escape high taxes and an easy method of maintaining good health with money. Unlike intricate tax codes, this section is your one-stop solution, which provides a straightforward approach for securing your insurance premiums.
What is Section 80D of the Income Tax Act?
Section 80D of the Income Tax Act allows individuals or HUF to claim a deduction for medical insurance premiums paid in a financial year. Section 80D provides a deduction for expenditure on the:
- Medical insurance premium
- Contribution to CGHS(Central Govt Health Scheme)/notified scheme
- Preventive health check-ups, and
- Medical expenditure (in case of senior citizens).
Section 80D offers tax deductions up to Rs. 25,000 for health insurance premiums paid by individuals and HUFs in a financial year. The deduction increases to Rs. 50,000 for senior citizens aged 60 and above.
| Insured | Amount of Deduction (in Rs) | |
|---|---|---|
| Age Below 60 years | Age Above 60 years | |
| Self, Children, Spouse | 25,000 | 50,000 |
| Parents | 25,000 | 50,000 |
| Max Deduction | 50,000 | 1,00,000 |
| Preventive Healthcare | 5,000 | 5,000 |
Who is eligible to claim Tax deductions under Section 80D?
Individuals or HUF can claim Section 80D deduction for:
- Self
- Spouse
- Parents
- Dependant Children
What is the maximum deduction that can be claimed under Section 80D?
| Type of Expense | Premium Paid |
|---|---|
| Medical insurance premium paid for individuals and families. | Rs. 25,000, Rs. 50,000(in case of senior citizen) |
| Medical insurance premium paid for your parents. | Rs. 25,000 Rs. 50,000(in case of senior citizen) |
| Expenditure on preventive health check-ups. | Rs.5,000 |
| Medical expenditure of senior citizens or super senior citizens. | Rs.50,000 |
| Contribution to CGHS/notified scheme. | Rs.25,000 Rs.50,000(in case of senior citizen) |
| Maximum amount of deduction (A+ B+C+D+E) Non-senior citizens(Self & family and Parents) Senior Citizens (Self & family and Parents) Self & family (Non-senior citizens)Parents(Senior Citizens) | Rs.25000+Rs.25000=Rs.50,000 Rs.50000+Rs.50000=Rs.1,00,000 Rs.25000+Rs.50000=Rs.75,000 |
A. Medical Insurance Premium: For Yourself & Your Family
- The maximum amount of deduction on the policy taken by you for self & for family is Rs. 25,000/-.
- In case of a senior citizen or any of your family members is a senior citizen(aged 60 years or more), the deduction amount will be Rs. 50,000/-.
Note: Under the 80D deduction, Family means your spouse & dependent children.
B. Medical Insurance Premium: For Parents
- In addition to the above, you can claim a deduction of the medical insurance premium paid u/s 80D for your parents as well.
- The maximum amount of deduction is Rs. 25,000/-. If your parents are senior citizens, the deduction will be Rs.50,000/-.
Notes :
- Parents for 80D include father and mother(whether dependent or not). Father-in-law and mother-in-law are not included.
C. Preventive Health Check-Up
Preventive Health check-ups identify the illness and work at the initial level through regular health check-ups. It is conducted once or twice yearly by your physician or general practitioner. The government introduced deduction under preventive health checkups to encourage people to be more proactive towards health. It was implemented in the year 2013-14.
The cumulative deduction for this check-up is a maximum of Rs. 5,000/- for yourself, your family, and your parents. Even cash payment for this expenditure is eligible for an 80D deduction.
D. Deduction of Medical Expenditure on Senior Citizens (aged 60 & above)
The expenditure is allowed for the deduction when no medical insurance premium is paid for the senior citizen. The term medical expenditure has not been defined under the income tax act, but generally, it will include medical expenses such as medical consultation fees, medicines, impairment aid, etc.
The maximum deduction amount is Rs. 50,000/-.
E. Contribution to CGHS/notified scheme
Contribution to Central Govt Health Scheme(CGHS) or any other notified scheme is allowed to individuals for themselves and their family for Rs.25,000.
Any contribution for parents is not allowed for deduction.
Section 80D: Amount of deduction comparative chart for current & previous years
*Preventive Health Check up is included in overall limits
*Family includes spouse and dependent children
Deduction Available Under Section 80D
The deduction allowed under Section 80D is Rs 25,000 in a financial year. In the case of senior citizens, the deduction limit allowed is Rs 50,000.
The table below captures the amount of deduction available to an individual taxpayer under various scenarios:
| Policy for? | Deduction for self & family | Deduction for parents | Preventive Health check-up | Maximum Deduction |
| Self & Family (below 60 years) | 25,000 | – | 5,000 | 25,000 |
| Self & Family + Parents (all of them below 60 years) | 25,000 | 25,000 | 5,000 | 50,000 |
| Self & Family (below 60 years) + Parents (above 60 years) | 25,000 | 50,000 | 5,000 | 75,000 |
| Self & Family + Parents (above 60 years) | 50,000 | 50,000 | 5,000 | 1,00,000 |
| Members of HUF (below 60 years) | 25,000 | 25,000 | 5,000 | 25,000 |
| Members of HUF (a member is above 60 years) | 50,000 | 50,000 | 5,000 | 50,000 |
*The deduction for preventive check-up of up to Rs 5,000 will be within the overall limit of Rs 25,000/50,000. Please note that ‘family’ under this section includes only the spouse and dependent children.
What is a preventive health check-up under Section 80D?
Under Section 80D of the Income Tax Act in India, taxpayers can claim a deduction for medical insurance premiums paid for themselves and their family. In addition to the deduction for health insurance premiums, the section allows a deduction for expenses incurred on preventive health check-ups. Preventive health check-ups involve medical tests and examinations aimed at early detection of illnesses and monitoring an individual’s health status. Such check-ups help identify health risks early on, potentially preventing serious health issues.
- Tax Deduction: The Income Tax Act provides a tax deduction under Section 80D for expenses incurred on preventive health check-ups. Taxpayers can claim up to ₹5,000 per financial year for themselves, their spouses, children, and parents.
- Overall Limit: The deduction for preventive health check-ups is part of the overall limit for medical insurance premiums paid under Section 80D. For individuals below 60 years, the overall limit is ₹25,000, and for senior citizens (60 years or older), the limit is ₹50,000. This means that the deduction for preventive health check-ups is not separate from the limit for health insurance premiums—it is included within the total limit.
Example for the Calculation of 80D Deduction
Ram(57 years) is a taxpayer. Other members of his family are Sita(55 years old, Ram’s wife), Lav and Kush (dependent children), and his Parents. The following expenditures incurred by Ram for FY 2023-24:
| Ram, Sita, Lav & Kush | Parents | |
| Medical insurance premium paid by cheque | 22000 | – |
| Medical Expenditure paid by cheque | – | 47,000 |
| Medical Expenditure paid by cash | 7000 | 5000 |
| Preventive health-check-up | 8000 | 4000 |
80D Deduction Amount
| Ram, Sita, Lav & Kush | Parents | |
| Medical insurance premium paid by cheque | 22000 | – |
| Medical Expenditure paid by cheque | – | 47,000 |
| Medical Expenditure paid by cash | Not eligible since available for senior citizen, for whom medical policy not taken | Not allowed cash expenses. |
| Preventive health-check-up | 3000(maximum limit is 25000 since 22,000 is utilized, only 3000 can be claimed ) | 2000(maximum limit is 50000 since 47,000 utilized, remaining 3000. However, preventive health check-up has an overall limit of 5000, out of which 3000 are used for self and family, so only 2000 can be claimed now) |
| Total 80D deduction that Ram can claim is Rs. 74,000 | 25000 | 49000 |
Notes : *The amount of deduction u/s 80D will remain the same for the FY 2022-23 and FY 2023-24 (old income tax slab).
Section 80D Tex Deductions for HUFs
- A medical claim can be taken under Section 80D for any of the members of HUF.
- The maximum amount of deduction is Rs. 25,000/-. If the member is a senior citizen, then the maximum deduction will be Rs. 50,000/-.
- HUF is not eligible to claim a deduction for a preventive health check-up.
Deduction on Single Premium Medical Insurance Policies
In such policies, a one-time lump sum payment is made against the regular installment for the complete policy tenure. Since the payment is a one-time payment, the deduction will be allowed on a proportionate basis.
- Amount Eligible under section 80D = Single Premium Paid / Number of years for which policy has been taken.
- The limit of 25,000 for individuals below 60 years of age and Rs 50,000 for others shall also apply in this case.
Mode of Payment under Section 80D
| Expenses | Modes of Payment Allowed |
|---|---|
| Health insurance premiums | All payment modes are accepted except cash |
| Preventive health check-ups | Debit card, cheque, UPI, credit card |
What is the difference between sections 80D, 80DD, 80DDB, and 80U?
Sections 80D, 80DD, 80DDB, and 80U are different sections under the Indian Income Tax Act that provide deductions to taxpayers for various medical and disability-related expenses. Here’s a brief overview of each section:
| Particulars | 80D | 80DD | 80DDB | 80U |
|---|---|---|---|---|
| Purpose | Medical Insurance & Medical expenditure | Medical treatment of a disabled dependent | Medical Treatment of Self/Dependant for specified diseases | Medical treatment of disabled assessee (self) |
| Maximum Limit | 1,00,000 | 75,000(non-severe disability) 1,25,000(severe disability) | 40,000(age < 60) 1,00,000 (age 60 or above) or amount spent whichever is less | 75,000(non-severe disability) 1,25,000(severe disability) |
| Type of assessee | Individual/HUF | Resident Individual/ HUF | Resident Individual/ HUF | Resident Individual |
FAQs
Can a son claim tax exemptions for his parents Medical Premium paid by him?
Yes, a son can claim for their parents medical premium as per section 80D.
Does LIC premium payment for dependent parents come under section 80D?
No, Section 80D is for medical premiums and health insurance premium.