Health insurance can be part of how you plan for medical expenses. What you may also want to know is whether the premium you pay can help when you file your taxes. Section 80D of the Income-tax Act, 1961, allows eligible taxpayers to claim a deduction for certain health insurance premiums and other healthcare expenses. The amount you can claim depends on certain factors.
How Does Section 80D Apply to Your Health Insurance Payments?
Section 80D allows eligible individuals to claim a deduction for specified health insurance premium payments made for themselves, their spouse, dependent children, and parents. Separate limits apply to the self-and-family category and the parents’ category.
Under Section 80D, the deduction limits are:
| Category | Age Criteria | Maximum Deduction Limit |
| Self, spouse, and dependent children | Below 60 years | Up to ₹25,000 |
| Self, spouse, and dependent children | Senior citizen (60 years or above) | Up to ₹50,000 |
| Parents | Below 60 years | Up to ₹25,000 |
| Parents | Senior citizen (60 years or above) | Up to ₹50,000 |
If you are a senior citizen and your parent or parents are also senior citizens, the total deduction can be up to ₹1,00,000, subject to the applicable conditions.
Can Preventive Health Check-Ups Also Qualify For Section 80D?
You can claim up to ₹5,000 for eligible preventive health check-ups for yourself, your spouse, dependent children, or parents. This amount remains part of the applicable overall Section 80D limit.
For example, if you pay ₹20,000 towards an eligible health insurance premium and ₹4,000 towards a preventive health check-up, the combined amount is ₹24,000, subject to the applicable conditions and limit.
There is also a difference in payment mode. Cash payment can qualify for preventive health check-ups, while health insurance premium payments need to be made through a mode other than cash.
Does Section 80D Apply Under the New Tax Regime?
This is an important detail you need to check before factoring a health insurance tax benefit into your calculations.
Section 80D is a Chapter VI-A deduction, and the deduction is available under the old tax regime. The new tax regime does not allow a Section 80D deduction.
What Other Medical Expenses Can Fall Under Section 80D?
Section 80D also provides for certain medical expenditure incurred on a senior citizen where no premium has been paid for health insurance coverage for that person. The deduction limit for this medical expenditure is up to ₹50,000, subject to the applicable conditions.
What Details Should You Keep Ready for Your Tax Return?
If you are claiming a Section 80D deduction, keep the details of your health insurance payments ready before you start filing your return. You may need information such as:
- Name of the insurer
- Policy number
- Amount of health insurance premium paid
- Details of the person covered, such as yourself, your spouse, dependent children, or parents
- Payment records showing that the eligible premium was paid during the relevant financial year
If you are also claiming a deduction for eligible preventive health check-ups or medical expenses for a senior citizen, keep the related payment records as well. Check that the details entered in your return match your policy and payment records, particularly the premium amount and policy details. This can help you provide the required information correctly when filing your return.
Conclusion
Section 80D can reduce your taxable income. The deduction you can claim depends on who the health insurance covers, their age, and the type of payment. Keep your premium receipts, policy details, and payment records ready when you file your return. This makes it easier to enter the right details and claim the deduction you are eligible for.