Section 80D Deduction

Health insurance is becoming increasingly important as disease incidence and medical expenditures rise. The government provides a number of health and term insurance tax benefits to encourage the purchase of health insurance. Section 80D of the Income Tax Act of 1961 is one such tax break. The tax benefits mentioned in the article may not apply if you opt for the new tax regime since many tax exemptions and deductions have been scrapped within the new regime. They are also subject to any changes in the law.

In most cases, we are unprepared for medical emergencies. As a result, it is always better to be safe than sorry regarding health insurance. What is term insurance? It is a form of insurance that provides you with protection in case of the untimely demise of the insured.

Because the vast majority of individuals in India lack health insurance, they must rely on their savings or take out loans in the event of an emergency. Medical insurance is a must-have for any investment portfolio, and the government encourages everyone to get it by providing Section 80D tax breaks and term insurance tax benefits.

What exactly is Section 80D?

Section 80D allows any “Individual” or “HUF” to deduct health insurance premium payments made in a given year from total income. This deduction applies to top-up health plans, critical illness insurance, and critical illness riders. Be sure to look up term insurance plans too. 

The deduction advantage is available when obtaining a health insurance plan for yourself, your spouse, your dependent children, or your parents. Also, plan for term plans to help you.

Moreover, this deduction (or deductions) can be claimed in addition to Section 80C deductions.

Who is eligible for a Section 80D deduction?

Individual or HUF taxpayers are the only ones who can deduct medical insurance premiums and medical expenses for older persons. Individual or HUF taxpayers can obtain the following insurance:

  1. Self


  1. Reliant children
  2. Responsible Parents
  3. Responsible In-Law Parents

This deduction is not available to other entities. A company or a firm cannot claim a deduction under this Section.

What payments are deductible under Section 80D?

For either an individual or a HUF, the following payments are deductible under Section 80D:

  1. A health insurance premium paid in any manner other than cash for the self, spouse, dependent children, or parents.
  2. Expenses for preventative health examinations

3.Costs connected with treating a senior (60 years or older) who do not have health insurance.

  1. Payment made to the Central Government’s health system or any other programme announced by the government.

Individual: Section 80D deduction available

Individual taxpayers may deduct up to INR 25,000 for their personal health insurance as well as the insurance of their spouse and dependent children.

If your parents are over the age of 60, you may be eligible for a separate/additional deduction of up to INR 50,000. If your parents are not senior citizens, you may be eligible for a deduction of up to INR 25,000.

If you pay medical expenses for senior citizens (yourself, your spouse, your dependent children, or your parents) that are not covered by health insurance, you may be entitled to a deduction of up to INR 50,000.

If both the taxpayer and their parents are over 60 and have medical insurance, the maximum deduction possible under this section is $1,000,000. If they do not have health insurance, you may deduct the costs of treating the elderly (taxpayer/family and parents) for medical purposes up to the authorised amount.

Senior citizens over 60 include both senior and very senior citizens.

HUF stands for Hindu Undivided Family.

Section 80D allows for the deduction of any medical claim submitted for one of the HUF’s members.

If the covered member is under 60, the deduction is 25,000; if the insured person is 60 or more, the deduction is 50,000.

What is a Section 80D preventive health check-up?

In 2013-14, the government enacted a preventative health checkup deduction to encourage people to be more health-conscious. The purpose of preventative health check-ups is to detect any illnesses early on and reduce risk factors through regular health checks.

Section 80D allows a 5,000 deduction for costs made for preventative health examinations. This reduction will be at most the aggregate cap of 25,000 or 50,000, whichever is greater.

This deduction may also be claimed by the individual on behalf of himself, his spouse, any dependent children, or his parents. Preventive health checks can be paid for in cash.

Deduction under Section 80D for Single Premium Health Insurance Policies

The 2018 budget featured a new provision for claiming a deduction for single premium health insurance policies.

A taxpayer might claim a deduction equal to the fair share of the sum under Section 80D if a lump sum premium payment for insurance valid for more than a year was made in a single year, according to the new regulation.

The correct fraction is computed by dividing the lump sum premium paid by the length of the insurance. However, this would be regulated once more by INR 25,000 or INR 50,000, as appropriate. 

What is term insurance, and does it have any relation? Term insurance also comes under similar sections of the IT act. Make sure you read about it in detail.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.