Section 80D - Tax Deductions for Health Insurance
Section 80D of the Income Tax Act allows deductions for premiums paid towards health insurance policies. This is one of the most significant tax-saving instruments available to Indian taxpayers.
💡 Maximum Tax Savings Possible:
₹1,00,000/year
For senior citizens with critical illness coverTax Deduction Limits (AY 2024-25)
| Category | Maximum Deduction | Age Criteria | Example |
|---|---|---|---|
| Self, Spouse & Dependent Children | ₹25,000 | Below 60 years | Family of 4 (parents + 2 kids) |
| Parents (Senior Citizens) | ₹50,000 | 60 years or above | Parents above 60 years |
| Parents (Non-Senior) | ₹25,000 | Below 60 years | Parents below 60 years |
| Self (Senior) + Parents (Senior) | ₹75,000 | All above 60 years | You + parents all senior citizens |
| With Preventive Health Check-up | +₹5,000 | Within overall limit | Additional ₹5,000 within limits |
What Premiums Qualify for Deduction?
Individual Health Insurance
Policy for self onlyFamily Floater Plans
Covers spouse & childrenCritical Illness Plans
Specific illness coverageSenior Citizen Plans
For parents above 60Tax Calculation Examples
👨👩👧👦 Example 1: Young Family
- Your age: 35 years
- Spouse age: 32 years
- Parents age: 58 & 56 years
Total Deduction: ₹50,000
(₹25,000 self + ₹25,000 parents)👴👵 Example 2: Senior Parents
- Your age: 40 years
- Parents age: 65 & 62 years
Total Deduction: ₹75,000
(₹25,000 self + ₹50,000 parents)Documents Required for Tax Claim
📋 Keep these documents ready:
- Health insurance premium receipts/payment proof
- Policy copy showing premium amount
- Preventive health check-up bills (if claiming extra ₹5,000)
- PAN details of insured persons
Common Mistakes to Avoid
❌ Wrong
Claiming deduction for parents' policy paid by them
✅ Correct
Only claim if YOU pay the premium for parents