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4.8 Star User RatingMedical emergencies can occur anytime and anywhere. It is always said that staying safe is better than saying sorry. In a medical emergency, taxpayers can claim reimbursement from their medical insurance provider for the medical expenses incurred. The reimbursed amount can be claimed as a deduction under Section 80D of the Income Tax Act, subject to the maximum limit specified. Health insurance is one of the key investments that must be included in your portfolio. The government encourages everyone to buy medical insurance and thus has allowed deductions under Section 80D.
Section 80D of the Income Tax Act 1961 was introduced to promote health planning. Under this section, taxpayers can claim deductions and tax benefits under health insurance premiums. Section 80D provides a deduction for expenditure on the:
The amount on Section 80D deduction depends upon the type of expenditure, mode of payment, and the age & relation of the person for whom expenditure has been done.
Individuals or HUF can claim Section 80D deduction for:
For claiming deduction u/s Section 80D, the premium should be paid in any mode other than cash. Although the expenditure on preventive health check-ups can be incurred in cash. The deduction for the following premiums is allowed 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 |
If you have medical insurance and want to maximize your tax savings through deductions under section 80D. Filing your Income Tax Return with us is easy and convenient and ensures a seamless process for claiming your 80D deductions.
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Note: Under the 80D deduction, Family means your spouse & dependent children.
Notes :
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.
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/-.
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
Ram(57 years) is a tax-payer. 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).
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.
No deduction on the following amounts shall be allowed under section 80D:
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 |
It's essential to be aware of these exclusions and ensure that you meet the eligibility criteria for claiming deductions under Section 80D while filing your income tax return.
When availing tax deductions under Section 80D of the Indian Income Tax Act for premiums paid on health insurance policies, it's important to keep several key considerations in mind. Here are some things to remember:
Understand Eligibility Criteria:
Differentiate Between Premiums:
Maintain Documentation:
Check Deduction Limits:
Claiming Deductions for Parents:
Check for Appropriate Policies:
Normally term insurance premiums do not qualify for tax exemption under section 80D. Still it depends on the nature of the term insurance policy you have taken.
Yes, a son can claim for their parents medical premium as per section 80D.
No, Section 80D is for medical premiums and health insurance premium.
Yes, taxpayers can claim a deduction under section 80D if they are making payments for medical and health insurance premiums.
The maximum limit u/s 80D is Rs. 25000 (in case senior citizen Rs. 50,000)and in case both assessee and parents are senior citizens, then the amount can be claimed up to INR 1,00,000.
Yes, the whole amount paid will be available for deduction.
Yes, provided your company includes that premium paid into your CTC
Section 80D allows you to claim a deduction for health checkups taken for spouses, parents, and dependent children up to Rs 5000.
No, it will not be an expense for the employee if reimbursed by the employer.
The expenditure on medical treatment outside the country can also be claimed u/s 80D as there is nothing specifically mentioned in the Act in respect of medical expenditure
Yes, the benefit of more than one insurance policy are allowed but subject to the maximum limit.
For claiming tax benefits filing of ITR is mandatory. When filing ITR you need to disclose the 80D deduction under “Deduction under chapter VI-A”.
Preventive health check-up has not been defined under the law, so we can interpret it in general terms to be an expenditure done for diagnosing, safeguarding, and minimizing the effect of the illness.
