Health is wealth — and now, it can help you save on taxes too! Under Section 80D of the Income Tax Act, 1961, individuals and Hindu Undivided Families (HUFs) can claim deductions on health insurance premiums and preventive health check-ups.
👤 Who Can Claim This Deduction?
Section 80D is available to:
- Individuals (Resident or Non-Resident)
- Hindu Undivided Families (HUFs)
👪 Who Can Be Covered?
The deduction is available for premiums paid towards:
- Self
- Spouse
- Dependent children
- Parents (whether dependent or not)
💰 Deduction Limits under Section 80D
| Coverage Category | Age Below 60 Years | Age 60 Years or Above |
|---|---|---|
| Self + Spouse + Dependent Children | ₹25,000 | ₹50,000 |
| Parents (of the individual taxpayer) | ₹25,000 | ₹50,000 |
| Maximum Possible Deduction | ₹50,000 | ₹1,00,000 |
🧪 Preventive Health Check-ups
- Maximum limit: ₹5,000
- This is included within the overall ₹25,000 / ₹50,000 limit
- Payment can be made in cash
🧾 What Payments Qualify?
You can claim deduction for:
- Health insurance premiums (excluding cash payments)
- Contribution to Central Government Health Scheme (CGHS)
- Contribution to other government health schemes
- Preventive health check-up expenses (cash allowed here)
❌ What Does NOT Qualify?
- Premium paid in cash (except for check-ups)
- Group insurance premiums paid entirely by your employer
- Premiums paid for siblings, grandparents, or working children
🧮 Example
Let’s say Mr. Sharma (aged 35) pays:
- ₹22,000 for health insurance (for self, spouse, and children)
- ₹28,000 for his senior citizen parents’ policy
Deduction Claimed:
- ₹22,000 (Self + Family)
- ₹28,000 (Parents)
✅ Total Deduction: ₹50,000
✍️ Final Words
Section 80D not only secures your family’s health but also reduces your tax burden. Make sure your payments are made through banking channels and the policies are from an approved insurer.
💡 Pro Tip: Keep the premium receipts and policy documents safely for future reference or queries from the Income Tax Department.