Health is wealth, and with Section 80D, it also saves you tax. Premiums paid towards medical insurance policies are eligible for deduction under this section.
Deduction Limits
The amount you can claim depends on who is covered under the policy and their age.
| Category | Deduction Limit |
|---|---|
| Self, Spouse & Children (Below 60) | ₹25,000 |
| Parents (Below 60) | Additional ₹25,000 |
| Parents (Above 60 - Senior Citizens) | Additional ₹50,000 |
| Self (Above 60) | ₹50,000 |
Preventive Health Check-up
Within the overall limit of ₹25,000/₹50,000, you can claim a deduction of up to ₹5,000 for preventive health check-ups.
Payment Mode
Premiums MUST be paid by any mode other than cash (Check, Net Banking, Credit Card, UPI, etc.) to be eligible. However, preventive health check-up payments can be made in cash.
What is Covered?
1. Medical Insurance Premium
2. Contribution to Central Government Health Scheme (CGHS)
3. Preventive Health Check-up
4. Medical Expenditure for Senior Citizens (if they don't have health insurance)
Conclusion
Section 80D provides double benefits: financial security during medical emergencies and tax savings. Ensure you cover your elderly parents to maximize the benefits up to ₹75,000 or even ₹1,00,000 in specific cases.