Health Insurance 80D Tax Exemption


 Section 80D of the Income Tax Act, 

Which pertains to deductions related to medical Health insurance:

  1. What is Section 80D?

    • Section 80D allows individuals and Hindu Undivided Families (HUFs) to claim a deduction for medical insurance premiums paid during the financial year.
    • This deduction is additional to the deductions claimed under Section 80C (up to Rs 1.5 lakh).

  2. Eligibility for Deduction:

    • Who can claim this deduction:
      • Individuals and HUFs are eligible.
      • Companies or firms cannot claim this deduction.
    • What can be deducted:
      • Medical insurance premiums paid for:
        • Self
        • Spouse
        • Dependent children
        • Parents
      • Preventive health checkups (cash payment allowed) up to Rs 5,000.

  3. Deduction Limits:

    • For individuals and HUFs:
      • Up to Rs 25,000 for health insurance premiums (excluding cash payments).
      • Up to Rs 50,000 if family members or parents are senior citizens (aged 60 years and above).
    • For senior citizens:
      • The deduction limit is Rs 50,000 for both health insurance premiums and medical expenses.

  4. Additional Notes:

    • Contributions to CGHS (Central Government Health Scheme) or any other notified scheme are also eligible for deduction (up to Rs 25,000).
    • Contributions made on behalf of parents are not eligible for this deduction.