What is Section 80D?

Modified on Thu, 17 Aug 2023 at 12:51 PM

Section 80D offers deduction for amount spent on medical insurance premium along. It also covers top-up health plans and critical illness plans. Every individual (including non-resident individuals) and HUF can claim a deduction under Section 80D.

Deductions allowed under Section 80D are,

Money spent on health insurance policy premium
Money spent on family members' healthcare

Scenario	Health Insurance Premium paid (Rs)		Deduction under 80D (Rs)
Scenario	Self, family, children	Parents	Deduction under 80D (Rs)
Self Below 60 Years & Parents Below 60 Years	25,000	25,000	50,000
Self Below 60 Years & Parents Above 60 Years	25,000	50,000	75,000
Self Above 60 Years & Parents Above 60 Years	50,000	50,000	1,00,000

However, there are a few exclusions under Section 80D

If payment for health insurance premium is done by cash.
Group health insurance premium provided by the company is not eligible for deduction
Payment made on behalf of working children, siblings, grandparents or any other relative cannot be claimed as a deduction for tax benefit