What are the deduction limits under section 80D for health insurance?

You are eligible to avail a tax deduction up to Rs. 25,000 in a financial year, under Section 80D for the premiums paid against a medical insurance policy. The deduction is available on the health plan premiums paid to cover yourself along with your spouse and children, provided none of the beneficiaries of the plan is above 60 years of age.

In case, you are paying the health insurance premium for your parents (ageing 60 years or more), you can claim tax savings up to Rs. 50,000 in the given fiscal year. Thus, you can accrue tax deductions up to Rs. 75,000 as deductions under 80D, if you are paying a health insurance premium for both your family and senior citizen parents.

Further, you are also entitled to receive tax reduction on preventive health checkups annually. Therefore, you can claim any expenses incurred for preventive health checkups for your family and parents, up to a maximum of Rs. 5,000 for each financial year. This way, you can maximise your tax savings under Section 80D. The complete breakdown of the total amount of tax benefits that you can avail under the section is depicted in the table below:

Description Health Premium Paid For Maximum Deduction U/S 80d
Self, Spouse and Dependent Children Parents Parents
All family members age less than 60 years Rs. 25,000 Rs. 25,000 Rs. 50,000
You and your family are below 60 years of age while your parents have attained the age of 60 years or more Rs. 25,000 Rs. 50,000 Rs. 75,000
You and your parents have surpassed the age of 60 years or more Rs. 50,000 Rs. 50,000 Rs. 1,00000
Consult us