Purpose and Applicability

• Section 80D of the Income Tax Act allows deductions for premium paid on health insurance policies.
  
• It encourages individuals and families to secure medical coverage and reduce tax liability.
  
• Deduction is available for individuals and Hindu Undivided Families (HUFs).
  
• It covers insurance for self, spouse, dependent children, and parents.
  
• This section is applicable under the old tax regime only.
  

Deduction for Self and Family

• Up to ₹25,000 per year for premiums paid for self, spouse, and dependent children.
  
• If the insured is a senior citizen (age 60 or above), the limit increases to ₹50,000.
  
• Premium must be paid using any mode other than cash.
  
• The policy should be from a recognized insurer approved by IRDAI.
  
• The deduction is allowed even if the policy covers multiple family members under one plan.
  

Deduction for Parents’ Health Insurance

• Additional deduction of ₹25,000 is available for premium paid for parents.
  
• If either parent is a senior citizen, the limit increases to ₹50,000.
  
• Parents need not be dependent to claim this benefit.
  
• Both deductions for self/family and for parents can be claimed in the same year.
  
• Payment must be made by the taxpayer and not reimbursed.
  

Preventive Health Check-up Benefit

• A maximum of ₹5,000 can be claimed for preventive health check-ups.
  
• Included within the overall limit of ₹25,000 or ₹50,000, not in addition.
  
• Allowed even if paid in cash.
  
• Available for self, family, and parents.
  
• Aggregate of premium and health check-up cannot exceed the respective limit.
  

Deduction for Medical Expenses of Senior Citizens

• If a senior citizen is not covered under any health insurance, actual medical expenditure up to ₹50,000 can be claimed.
  
• Applicable for senior citizens only.
  
• Deduction is allowed only when no insurance policy exists.
  
• Medical bills must be preserved as proof in case of scrutiny.
  
• Not available if the same expense is claimed under any other section.
  

Summary of Maximum Deduction Limits

• ₹25,000 for self, spouse, and children (non-senior citizens).
  
• ₹50,000 if the taxpayer or any family member is a senior citizen.
  
• ₹25,000 for parents (non-senior citizens) or ₹50,000 (if parents are senior citizens).
  
• Total maximum possible deduction under Section 80D is ₹1,00,000 in a year.