Section 80D lets you deduct premiums paid for health insurance from your taxable income, separately from the Section 80C limit. Like 80C, it is available only under the old tax regime.
The limits
- Yourself, spouse and children: up to ₹25,000 a year (₹50,000 if you are a senior citizen).
- Parents: an additional ₹25,000 (₹50,000 if either parent is a senior citizen).
- Preventive health check-ups: up to ₹5,000, within the limits above.
An example
If you are 40 and pay ₹22,000 for your family floater, and ₹38,000 for a policy for your senior-citizen parents, you could claim ₹22,000 + ₹38,000 = ₹60,000 under 80D.
Points to remember
- Pay premiums by any mode other than cash to claim the deduction (cash is allowed only for preventive check-ups).
- Keep premium receipts for your employer or your return.
- Buy health cover for its protection first; the tax saving is a bonus.
Read health insurance basics or Section 80C explained.
This article is for general education only and is not personal financial, tax or legal advice.
Tax rules change from year to year. Figures here reflect the rules at the time of writing; please verify the current rules or consult a tax professional before acting.