Section 80D- Medical Insurance premiums
The deduction benefit is available not only for a health insurance plan for self but also for buying the policy to cover spouse, or your dependent children or pare
Who is eligible
Individual or HUF taxpayers, insurance can be availed for :
- Self
- Spouse
- Dependant children
- Parents
Payments eligible as deduction
- A medical insurance premium paid for self, spouse, children or dependent parents in any mode other than cash.
- Expenditure incurred on the account of preventive health check-up
- Medical expenditure incurred on the health of senior citizen (aged 60 years or above) who is not covered under any health insurance scheme.
- The contribution made to the Central Government health scheme or any scheme as notified by the government.
Maximum Deduction Limit Computed Below
| No. | Particulars | Individual | HUF | |
| Amount Of Deduction | Self, Spouse, Dependent Children | Parent | Member | |
| A. | i. Medical Insurance Premium | Yes | Yes | Yes |
| ii. Central Government Health Scheme | Yes | No | No | |
| iii. Preventive Health Check up | Yes | Yes | No | |
| Total deduction | Max 25,000 | Max 25,000 | Max 25,000 | |
| iv. Medical Insurance Premium On Senior Citizen( Age > 60 Years) | Max 25000 | Max 25000 | Max 25000 | |
| B. | Medical Expenditure of Senior Citizen (Medical Insurance not paid) | Max 25000 | Max 25000 | Max 25000 |
| C. | Maximum Deduction Allowed u/s 80D | 50,000 | 50,000 | 50,000 |
Deduction for HUF
- HUF can take medical insurance policy or incur medical expenditure on senior citizens in absence of any policy for any member of the family.
- The maximum amount of deduction is Rs. 25,000/-. If the member is a senior citizen then the maximum deduction will be Rs. 50,000/-.
- HUF is not eligible to claim deduction for preventive health check-up.
Preventive Health Check-Up Expenditure
- It is like a regular health check-up conducted once or twice every year by your physician or general practitioner .
- The cumulative amount of deduction for this check-up is maximum Rs. 5,000/- for yourself,
- your family and parents. Even cash payment for this expenditure is eligible for 80D deduction.
Notes
- Where the medical insurance premium is paid in lumpsum for more than 1 year , deduction shall be allowed = Lumpsum Premium/ Previous Years in which Insurance in force
- Example: Mr Pratyush paid health insurance premium to star health of Rs: 60000 for 5 years on 01/11/2021. Policy tenure is 5 years i.e from 01/11/2021 to 31/10/2026. Calculate deduction to be allowed in PY 2021-22.
- In this case deduction allowed in 6 previous years i.e from previous year 2021-22 till previous year 2026-27, so deduction for previous year 2021-22 is 6000/6 years = 10,000.
- Aggregate payment for preventive health check of self, spouse , dependent children & parents cannot exceed Rs: 5,000.
