Meaning

Deduction under this section is applicable to every Individual and HUF from their total income against amount paid towards medical insurance premium in a financial year.

Eligibility under this section

Individuals and HUF can claim deduction for medical insurance premium paid for self and family and medical expenses for senior citizens.

Individuals and HUF can claim insurance premium paid for following:
a) Self
b) Spouse
c) Dependent Children
d) Parents

Payments Allowed as deduction u/s 80D

Individuals and HUF can claim deductions u/s 80D against the following payments made:

• Medical Insurance paid for self, spouse, dependent children, or parents in any mode other than cash
• Expenditure incurred on grounds of preventive health checkups
• Medical Expenditure incurred on health of senior citizens (aged above 60 years), not covered under any health insurance scheme
• Contribution made to Central Government health scheme or any scheme as notified by the government.

Maximum Deduction Allowed:

Both Individuals and Parents are less than 60 Years of age

An individual can claim deduction upto Rs. 25000 for premium paid for self, spouse and dependent children and an additional or separate deduction for parents' insurance premium paid is available to the extent of Rs. 25,000. Hence the total deduction available is Rs.50000.

Note:Medical expenses for individual family or parents aged below 60 years cannot claim deduction.(except Preventive health Checkups)

Individuals and Senior Citizen parents(Parents are more than 60 years) 

An individual can claim deduction upto Rs. 25000 for premium paid for self, spouse and dependent children and an additional or separate deduction for parents' insurance premium paid is available to the extent of Rs. 50,000. Hence the total deduction available is Rs. 75000.

Note: Medical expenses incurred for senior citizens not covered under any medical insurance, can be claimed upto Rs. 50,000. It includes Preventive Health chek up of Rs. 5000. 

Both Individuals and Parents are more than 60 Years of age

An individual can claim deduction upto Rs. 50000 for premium paid for self and spouse and an additional or separate deduction for parents' insurance premium paid is available to the extent of Rs. 50,000. Hence the total deduction available is Rs. 100000.

Note:Medical expenses incurred for Individual or Parents senior citizens not covered under any medical insurance, can be claimed upto Rs. 50,000 each. It includes Preventive Health chek up of Rs. 5000.

HUF:

• HUF can claim deduction u/s 80D for insurance premium paid for policy taken for members of the HUF
• The maximum deduction allowed is Rs. 25,000 if the persons insured are less than 60 years and is Rs.50,000 if any of the members are more than 60 years of age.

Preventive Health Checkups

This section includes a deduction upto Rs. 5000 for any payments made towards preventive health cheakups. This deduction is within the overall limit of Rs. 25000/50000. The deduction can be claimed by the individual for himself, spouse, dependent children or parents. The payment of preventive health cheakups is allowed in cash.

Single premium health insurance policies:

If lumpsum amount is paid against insurance premium applicable for more than 1 year then deduction can be claimed u/s 80D equal to the appropriate fraction of amount (Premium paid/no. of years), subject to the limit of Rs. 25000/Rs. 50000.

Deduction u/s 80D under the New Tax Regime:

This deduction is not allowed under the new tax regime.