Section 80D – Medical Insurance & Health Check up Deductions

section 80D income tax act

Section 80D of Income Tax Act, 1961 helps us to claim deductions for medical insurance premium payments made for the financial year for self, spouse, children and parents. Also it includes the payments made for preventive health check up in case the amounts are within the limits. The limits of deductions depend on the age of the insured family members. This option helps us to save income tax with Old Tax Regime.

Below is the table of deduction limits under Section 80D of Income Tax Act:

InsuredAge below 60 YearsAge above 60 Years
Self, Spouse and ChildrenRs. 25,000Rs. 50,000
ParentsRs. 25,000Rs. 50,000
Maximum DeductionsRs. 50,000Rs. 1,00,000
Preventive Healthcare ExpensesRs. 5000Rs. 5000
Section 80D Deductions of Income Tax Act Table

What is Section 80D Exemption?

  • Section 80D includes deductions or exemptions that can be claimed with Old Tax Regime for Medical Insurance Premiums and Preventive Health Check ups
  • Medical insurance helps you to avoid uncertain medical or hospitalizations expenses that can occur anytime as an emergency
  • You must have medical insurance for your family members to avoid such uncertain expenses
  • The insurance company provides you with required medical aid in case of expenses occurring due to hospitalization of insured person. To get this benefit, you need to have medical insurance for that person for which you pay premiums regularly.
  • This payment of premiums can be claimed as deduction or exemption every year under Section 80D with above mentioned limits

ALSO READ: Section 80C Deductions list and limits

Section 80D Features and Benefits

Section 80D allows you to have following features are benefits:

  • It helps you to save income tax based on the medical insurance premiums paid by you
  • Also, preventive health check up expenses are also covered under Section 80D with limit of Rs. 5000, provided the sum of all expenses are within mentioned maximum limits
  • Medical Insurance provides you the cushion in case of any emergency, you don’t have to touch your Emergency Funds during such cases due to medical insurance in place.
  • It is important to note that the deduction can be claimed only with Old Tax Regime. New Tax regime does not allow this deduction to be claimed.
  • Deduction Limits are different based on the age of the insured:
    If insured person is below 60 Years – Maximum Rs. 25,000 deduction allowed
    If insured person is above 60 Years – Maximum Rs. 50,000 deduction allowed
  • In this way, maximum of Rs. 1,00,000 can be claimed if insured people are above 60 years of age in same family
  • You must have the bills of medical expenses in order to claim the amount. Cash transactions are not allowed.
  • Paying health insurance premiums in full helps you to save tax throughout the tenure of insurance period every year

Ensure that you stay up to date with latest news about Income Tax Act as these rules are subjected to change with time.

ALSO READ: Old vs New Tax Regime – Which is Better?

What Deductions are allowed under Section 80D?

There are mainly two types of deductions allowed under Section 80D:

  • Money spent on medical insurance premiums paid for the financial year
  • Money spent on the preventive health check ups

The limit for preventive health check up is Rs. 5000 which must be included within the above mentioned limits.

So if all members in family (self and parents) are below 60 years of age, they can claim maximum of Rs. 50,000 under Section 80D as medical insurance premiums and preventive health check up expenses included for the year.

Medical Insurance Benefits for Senior Citizens

  • Senior citizens get extra benefits in Section 80D
  • The limit for deduction is Rs. 50,000 for their medical insurance premiums paid
  • You can claim this deduction for yourself or your parents if they are senior citizens

Exclusions under Section 80D

There are few things that are not included under Section 80D:

  • Bills paid in cash will not be considered under Section 80D deductions
  • Only Old Tax Regime allows to claim deduction under this section
  • If payment is made on behalf of working children, spouse or parents, then it is not allowed to be claimed for yourself
  • Group health insurance premium paid by company cannot be claimed by you

Some more Reading:

Frequently Asked Questions

What Investments come under Section 80D?

Medical Insurance premiums and preventive health check up expenses are covered under Section 80D of Income Tax act. The limits are based on the age of the insured family members.

What are the limits of Deductions under Section 80D?

If your age is below 60 years, maximum of Rs. 25,000 can be claimed. And if the age of insured in above 60 years, maximum of Rs. 50,000 can be claimed as deduction under Section 80D in a financial year

Can we claim 80D without Bills?

No. Bills need to be presented to claim deductions under this section. Cash transactions might not help you to claim exemptions.

How to Save Tax on 80D

The premiums paid for medical insurance by you for self, spouse, children and parents can be claimed under Section 80D of Income Tax Act.

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