Applicable to: Individuals & HUFs
This section provides tax benefits for health-related expenditures, including insurance premiums and preventive healthcare.
Key Deduction Structure (AY 2025-26)
1. Health Insurance Premiums
| CATEGORY | DEDUCTION LIMIT | ADDITIONAL FOR SENIOR CITIZENS |
| Self, Spouse, Dependent Children | ₹25,000 | ₹50,000 (if insured is senior citizen) |
| Parents | ₹25,000 | ₹50,000 (if parent is senior citizen) |
| Maximum Combined Limit | ₹1,00,000 (if both self + parents are seniors) |
Conditions:
- Policy must be in name of taxpayer or family
- Cash payments not eligible(only electronic/cheque payments allowed)
- Preventive Health Check-ups:Up to ₹5,000 (included in above limits)
2. Medical Expenditure (No Insurance)
- Deduction for non-insured seniors:₹50,000 (for medical treatment)
(Only if no health insurance is purchased)
Illustrative Examples
Case 1: Family (Non-Seniors) + Parents (Non-Seniors)
- Your premium: ₹20,000
- Parents’ premium: ₹20,000
- Health check-up: ₹5,000
Total deduction = ₹45,000
Case 2: Family (Non-Seniors) + Parents (Seniors)
- Your premium: ₹25,000
- Parents’ premium: ₹50,000
Total deduction = ₹75,000
Case 3: Family (Seniors) + Parents (Seniors)
- Your premium: ₹50,000
- Parents’ premium: ₹50,000
Total deduction = ₹1,00,000
Eligible Payments Under Section 80D
✅ Health Insurance Premiums (AYUSH included)
✅ Preventive Health Check-ups (up to ₹5,000)
✅ Medical Expenditure for Seniors (if uninsured)
❌ Overseas Treatment (not covered)
❌ Cosmetic Procedures
Comparison with Other Medical Deductions
| SECTION | PURPOSE | MAX DEDUCTION |
| 80D | Health Insurance | ₹1,00,000 |
| 80DD | Disabled Dependent | ₹1,25,000 |
| 80DDB | Critical Illness | ₹1,00,000 (seniors) |
Pro Tips to Maximize Benefits
- Combine Policies
- Insure parents under a family floater planfor higher tax benefits.
- Use Preventive Check-up Limit
- Claim ₹5,000 even if you don’t have insurance.
- Pay via Non-Cash Modes
- UPI/Bank transfers mandatory for eligibility.
FAQs
Q: Can I claim 80D if my employer provides health insurance?
A: Yes, but only for additional premium paid by you beyond employer coverage.
Q: Are Ayurvedic treatments covered?
A: Yes, if the insurance policy includes AYUSH.
Q: Can I claim both 80D and 80DDB?
A: Yes, if expenses are for different purposes (insurance + critical illness).
Section 80D is a powerful tool to reduce taxable income while securing health coverage. Plan premiums strategically to maximize deductions (especially for senior citizens).
