Eligible Deduction Under Section 80D

• Health insurance premiums are eligible for deduction under Section 80D of the Income Tax Act.
  
• Deduction is available for policies taken for self, spouse, dependent children, and parents.
  
• It helps reduce taxable income and encourages taxpayers to opt for medical coverage.
  
• The deduction is available to individuals and Hindu Undivided Families (HUFs).
  
• Applicable only under the old tax regime.
  

Deduction Limit for Self and Family

• A maximum deduction of ₹25,000 per year is allowed for premiums paid for self, spouse, and dependent children.
  
• If the taxpayer or any insured family member is a senior citizen (60 years or above), the limit is increased to ₹50,000.
  
• Premium must be paid through non-cash modes like cheque, net banking, or UPI.
  
• The policy must be issued by an insurer approved by IRDAI.
  
• The deduction is allowed even for multi-year policies proportionately.
  

Deduction for Parents’ Premium

• An additional deduction of ₹25,000 is allowed for health insurance premiums paid for parents.
  
• If either parent is a senior citizen, the limit is raised to ₹50,000.
  
• Parents need not be dependent on the taxpayer to claim this benefit.
  
• Deduction can be claimed even if parents have a separate health policy.
  
• This deduction is independent of the limit for self and family.
  

Preventive Health Check-up Inclusion

• Up to ₹5,000 can be claimed for preventive health check-ups.
  
• This is included within the ₹25,000/₹50,000 limit, not additional.
  
• Cash payment is allowed only for this component.
  
• It can be claimed for any member covered under the policy.
  
• Bills or receipts must be preserved as proof if required.
  

Medical Expenses for Uninsured Senior Citizens

• If a senior citizen (aged 60 or above) is not covered by insurance, deduction up to ₹50,000 is allowed for actual medical expenses.
  
• This applies separately to both taxpayer’s family and parents.
  
• No premium should be paid for that person in the same year.
  
• Bills must be retained for verification by the tax department.
  
• Deduction is not available if the person has health insurance.
  

Maximum Total Deduction Possible

• ₹25,000 (or ₹50,000) for self, spouse, and children.
  
• ₹25,000 (or ₹50,000) for parents.
  
• Total maximum deduction under Section 80D can be ₹1,00,000 if both the taxpayer and parents are senior citizens.
  
• These deductions help lower taxable income and promote health security.