Health Insurance Tax Benefits Under Section 80D

When you buy a health insurance plan, you become eligible for tax exemption under Section 80D of the Income Tax Act for the premium paid. You can avail tax deduction if you pay the premium for self, spouse, dependent children, parents.

 

Tax Saving Options with Health Insurance

 

Whether self-employed or salaried, you are eligible for tax benefits under the Income Tax Act. 

 

  • Tax Exemption Under Section 80D: As per Section 80D of the Income Tax Act, you can save tax by paying a premium for self, spouse, dependent parents, and children. 
  •  
  • Deduction on Preventive Medical Checkups: You can save tax on preventive health checkups on a yearly basis. Under this feature, you can claim a maximum amount of Rs. 5,000. 
  •  
  • Save Tax for Health Insurance Premiums Paid for Parents/Guardians under Section 80D:  You can enjoy a tax exemption of up to Rs. 25,000 every financial year against the premium paid for guardians. In case, your parents come under the senior citizen category, then the maximum limit extends up to Rs. 50,000 a year. The limit additionally comprises Rs. 5,000 towards annual health checkups of your parents.

 

Different Scenarios to Save Tax Under Section 80D

 

Scenarios indicating eligibility and deduction for saving tax under Section 80D: 

 

  • You and your parents below 60 years - Up to Rs. 25,000 claim allowed for self, family and children. An additional Rs. 25,000 claim allowed against the premium paid for parents. Total amount = Rs. 50,000.

  •  

  • You and your family below 60, but parents above 60 years - Up to Rs. 25,000 claim allowed against the premium paid for self, family, and children. An additional Rs. 50,000 claim amount for the premium paid for parents. Total amount = Rs. 75,000.

  •  

  • You, your family and parents above 60 years - Up to Rs. 50,000 claim against the premium paid for self, family, and children. Moreover, up to Rs. 50,000 claim amount for the premium paid for parents. Total amount = Rs. 1,00,000.

  •  

  • HUF (Hindu Undivided Family) - Up to Rs. 25,000 (premium paid for self, family, and children) and up to Rs. 25,000 (premium paid for parents) can be claimed. Total amount = Rs. 25,000 as tax benefits for parents available only if they are senior citizens.

  •  

  • Non-resident individual = Up to Rs. 25,000 claim amount for premium for self, family, and children. Parents considered for tax benefits only if they are senior citizens. Thus, the total amount = Rs. 25,000

 

Tax Saving for Senior Citizens

 

Tax exemption under Section 80D on premium for senior citizens (60 years old or more, but below 80 years) is allowed.

Details: 

 

    • Claim deduction of up to Rs. 50,000 allowed on medical insurance premium during every fiscal year
    • Rs.1 Lakh for medical treatment of particular critical illnesses
    • If super-aged father lacks insurance and mother is a senior citizen, a tax deduction of Rs. 50,000 can be claimed.

 

Tax Benefits FAQs 

 

Q 1. Will I be eligible for tax benefits if I buy indemnity based plan or fixed benefit plan?

Yes, you will be entitled to tax benefits, irrespective of your policy type purchase. 

 

Q 2. Can I avail tax benefits on preventive health check-ups?

Yes, you can avail tax benefits of up to Rs. 5,000 for preventative health check-ups under Section 80D of the Income Tax Act on a yearly basis. 

 

3. I want to pay my health insurance policy premium in cash. Will I be allowed to avail tax benefits in that case?

No, you will not be allowed. If you want to be eligible for tax benefits, it is advised to pay your policy premium in payment modes other than cash. You can either choose internet banking, cheque, credit/debit card, or bank demand draft for premium payment purposes. 

 

Q 4. Can I avail tax benefits on premium payment made for a policy covering relatives other than my spouse, children and parents?

According to Section 80D of the Income Tax Act, you are allowed to avail tax benefits only on the premium paid for self, spouse, dependent children and parents. Premium paid towards brother, sister, grandfather, grandmother and other relatives cannot be claimed as a deduction for availing tax benefits. 

 

To learn more about tax benefits, call our experts at 1800-1205-698. We will also help you gather correct information about health insurance plans for you and your parents and continue to offer assistance even after you buy a policy for you. 

Insurance Dekho Contact Details

Reach us for help anytime

Health Companies User Reviews

  • Glad to have chosen Insurance Dekho

    I purchased Religare Health Insurance’s Care Freedom plan from Insurance Dekho for my grandparents. The plan offered many benefits and Insurance...

    Read More
    R
    Raj Bhargav
    On: May 30, 2020 | Views
  • I am a satisfied customer.

    I was looking for a comprehensive health insurance plan when InsuranceDekho’s team suggested Star Health Insurance’s Star Comprehensive Pl...

    Read More
    N
    Neha Jain
    On: May 30, 2020 | Views
  • Reliable insurance broker-Insurance Dekho

    Insurance Dekho is a trusted health insurance broker. I can say this because this is the second time I have availed of their services. This time I pur...

    Read More
    R
    Rohini Sharma
    On: May 30, 2020 | Views
  • I got the perfect plan

    Aditya Birla Health Insurance Cancer secure is a very famous product that I recently purchased from Insurance Dekho. The plan covers me for many healt...

    Read More
    S
    Shikhar Bhatnagar
    On: May 30, 2020 | Views
  • Supportive staff at Insurance Dekho

    With supportive staff of InsuranceDekho, buying HDFC Ergo General Insurance’s Health Suraksha policy online was a very easy job. I was able to b...

    Read More
    P
    Pooja Srivastav
    On: May 30, 2020 | Views
  • Smooth claim settlement process.!

    I recently made a claim under my ICICI Lombard Complete Health Insurance plan when I got hospitalised. I applied for a claim by taking help from Insur...

    Read More
    D
    Deepali Goel
    On: May 30, 2020 | Views
  • Easy to buy online

    With trusted health insurance brokers like Insurance Dekho in the market, buying Max Bupa Heartbeat plans online was very easy for me. I shared a few ...

    Read More
    A
    Ananya J. Malhotra
    On: May 30, 2020 | Views
  • Bought policy online during lockdown

    Amid the coronavirus crisis, I felt the importance of health insurance and purchased Arogya Sanjeevani Policy from HDFC Ergo Health online during lock...

    Read More
    T
    Tulika Pandey
    On: May 30, 2020 | Views
  • Will recommend to friends too

    National Insurance’s National Mediclaim policy is the best. It covers me and my family for all the basic healthcare expenses. I will suggest thi...

    Read More
    N
    Naina Harjai
    On: May 30, 2020 | Views
  • Pool of health insurance plans

    InsuranceDekho has a pool of health insurance plans of which I chose United India’s Individual Health Insurance Policy as I found it to be most ...

    Read More
    D
    Deepak Arora
    On: May 30, 2020 | Views
  • Many network hospitals

    Bajaj Allianz’s Health Guard Family Floater plan was the best choice for me considering the good number of network hospitals they have tie up wi...

    Read More
    S
    Sameer Gupta
    On: May 30, 2020 | Views
  • Good services at network hospitals

    Insurance Dekho suggested to me Reliance Health Insurance’s MORE Health Insurance plan that will cover my family for major healthcare expenses. ...

    Read More
    J
    Jayant Gupta
    On: May 30, 2020 | Views
  • I liked my plan

    Raheja QBE’s Cancer Insurance plan covers me for expenses related to Cancer up to the sum insured limit. I liked my plan and services of Insuran...

    Read More
    R
    Rahil Mirza
    On: May 30, 2020 | Views
  • Affordable premium.

    I bought a Healthline policy from Cholamandalam last week. I was happy to choose InsuranceDekho as the team helped me buy an affordable plan with many...

    Read More
    S
    Sanket Singh
    On: May 30, 2020 | Views
  • Can pay online too

    Individual health insurance policy by Universal Sompo is not only easy to buy online from Insurance Dekho, but also easy to understand too. I had a fe...

    Read More
    V
    Vishakha Sabharwal
    On: May 30, 2020 | Views
  • Good job team...

    Magma HDI offers the best plans and so I chose to buy OneHealth Insurance Policy at low premiums. The team at InsuranceDekho helped me understand the ...

    Read More
    V
    Vishal Kaushik
    On: May 30, 2020 | Views
  • Team helped me with the process

    InsuranceDekho helped me to make an online purchase for the first time. I bought Go Digit’s Arogya Sanjeevani Policy easily. It was a great help...

    Read More
    S
    Shobhit Bhattacharya
    On: May 30, 2020 | Views
  • Quick services

    Insurance Dekho’s services are not only quick, but also require lesser paperwork as compared to agents. I liked my Liberty General’s Liber...

    Read More
    P
    Prateek Suri
    On: May 30, 2020 | Views
  • Health is wealth.

    Best Service by ManipalCigna and InsuranceDekho. 

    B
    Bhushan Pahuja
    On: May 29, 2020 | Views
  • Best Health Plan

    I purchased Religare Care health insurance plan for my wife with the help of a knowledgeable team of insurancedekho. It's the best health plan for...

    Read More
    S
    Subham Sharma
    On: May 29, 2020 | Views