Health Insurance Premium and Deduction u/s 80D

Section 80D covers payment of Health Insurance Premium for keeping alive a health(medical)  insurance policy or on account of preventive health check-up. Deduction u/s 80D is allowed only if payment of health insurance premium is made by any mode other than cash. The payment shall be out of income chargeable to tax. This deduction is allowable for individual (premium towards medical insurance policy in the name of self, spouse, dependent children or parents) and HUF (premium towards medical insurance policy in the name of any member of HUF) .

Deduction allowed under section 80 for payment of health insurance premium is over and above the deductions permissible under section 80 C (tax saver investments), 80 CCD and 80 CCG

Health Insurance Premium – Ceilings applicable for deduction u/s  80D 

For eligibility u/s 80D, Senior Citizen means an individual resident in India who is aged 60 years or more. The term Very Senior Citizen is used if he/she is eighty years or more.  

a)     A deduction up to Rs. 25,000/- (Rs. 30,000 if the policy holder is a senior citizen or very senior citizen) is available in respect of health insurance  premium for  the tax payer, his/her spouse and his/her dependent children. He/she can also claim the benefit of the deduction in respect of a contribution made, during the previous year to the Central Government Health Scheme or any other scheme notified by the Central Government within the limits given above. 

b)    An additional deduction up to Rs.25,000/-is available in respect of health insurance premium for the father and/or mother of the tax payer. (Rs. 30,000 if the parent  is a senior citizen or very senior citizen)

c)    In the case of HUF, the deduction allowable is Rs. 25,000/-. If the member is a senior citizen or very senior citizen, the maximum deduction can be upto Rs. 30,000.

d)    Amount in aggregate of Rs. 5,000/- is allowable for expenses incurred for preventive health check-up.  This payment can be made in cash. However, the ceilings of  Rs. 25,000/Rs.30,000 as the case shall be inclusive of the amount incurred towards preventive health check-up. 

Further, a deduction upto Rs. 30,000/- is allowable within the overall limit of Rs.30,000, towards medical expenditure incurred on the health of a person covered above (individual and member of HUF) provided such person is a very senior citizen and no amount has been paid to keep a health insurance in force for the person.