Section 80D: Income Tax Deduction for Medical Insurance & Health Checkups

Section 80D

Section 80D allows you to claim deduction on money spent as premium on health insurance policy and health care of your family members including parents. This deduction can be claimed by a taxpayer or by the close family member only.

Eligibility Criteria for Tax Benefits under Section 80D

According to section 80D of the income tax act, a resident individual can claim deduction against the premium paid for the health insurance of the following members in the family –

Self
Parents
Spouse
Children

HUF’s are also eligible to claim deduction under section 80D of the income tax act. Premium paid for the health insurance of any HUF member is eligible for tax deduction under this section.

Deduction Limit under Section 80D

There is a deduction limit specified by the income tax department for claiming deduction on insurance premium paid by the individual for self, parents, spouse or children. This deduction is different from the expenses incurred by an individual on health check-ups. The overall deduction limits are specified in the table below –

Scenario	Premium paid		Deduction under section 80d
Scenario	Self, family & children	Parents	Deduction under section 80d
Individual & parents below 60 years	25000	25000	50000
Individual with spouse & children below 60 years but parents above 60 years	25000	50000	75000
Both individual, family & parents above 60 years	50000	50000	100000
HUF members	25000	25000	25000
Non-resident individual	25000	25000	25000

Deduction for Preventive Health Check Up under Section 80D

Any payment made towards health check-up can be claimed by a tax payer up to Rs 5000 (Overall limit being Rs 25000). The overall limit of Rs 25000 has been increased to Rs 50000 w.e.f April 2018. This deduction can be claimed himself by the individual, spouse, dependent children or parents. In order to claim the deduction, the other specified condition is that the payment made by the individual for preventive health check-ups should be in cash mode only.

For example – Rakesh aged 35, paid a premium of Rs 23000 against the health insurance policy of her wife & dependent children in the financial year 2018-19. He has also done a payment of Rs.5000 for his health checkup. As specified above, Rakesh is 35 years old and hence claim only a deduction of Rs 25000 (Deduction of Rs 50000 for Senior citizens) towards insurance premium and Rs 5000 towards health-checkup under section 80D of the income tax act.