Health insurance protects your wealth from medical inflation. But did you know it also reduces your tax liability? Section 80D offers deductions over and above the ₹1.5 Lakh 80C limit.
Deduction Limits Under Section 80D
The amount you can claim depends on who is covered under the policy and their age.
| Category | Self (Below 60) | Self (Above 60) |
|---|---|---|
| Self & Family | ₹25,000 | ₹50,000 |
| Parents (Below 60) | + ₹25,000 | N/A |
| Parents (Above 60) | + ₹50,000 | + ₹50,000 |
| Max Deduction | ₹75,000 | ₹1,00,000 |
Preventive Health Checkup
Within the overall limit, you can claim up to ₹5,000 for preventive health checkups for yourself or your family. You do not need a hospitalization receipt; a bill from a diagnostic lab is sufficient.
What is NOT Covered?
- Premiums paid in Cash are not eligible for deduction (except for preventive health checkup).
- Group health insurance provided by your employer (unless you pay a part of the premium).
- Service tax and cess components of the premium.
Digital Payments
Always pay your insurance premiums via Net Banking, Credit Card, or Cheque to strictly comply with Section 80D rules for tax exemption.
Conclusion
Section 80D is a powerful tool to secure your family's health while saving taxes. Ensure you renew your policies on time and keep the premium receipts handy for tax filing. A healthy family and a healthy bank balance go hand in hand.