According to the Central Board of Direct Taxes (CBDT), approximately 5.89 crore people, as of 31st December 2021, filed their Income Tax Returns on the new e-filing portal. This figure might look miniscule when compared to the total population of 1 billion people, but as per the Indian tax structure, the income of a large number of people doesn’t fall under the eligible category. But, for those filing taxes, the government offers benefits.
To avail these benefits provided by the Indian government for making the right choice of investments and thereby saving considerably on taxable incomes, here is the information regarding saving tax under Section 80D of the Income-tax Act, 1961.
Under Section 80D taxpayers can avail tax deductions on the premiums paid towards health insurance in a financial year. So, it is a important to have a good health insurance policy in your investment portfolio as it provides rebates as well as saves you and your family from any unexpected expenses that may be incurred due to health emergencies. It is eligible for individuals and HUF (Hindu Undivided Family), and claim varies with age. So, make an informed choice while buying a health insurance and avail health insurance tax benefits.
Individual and HUF are eligible for deduction from taxable income under Section 80D. A person can claim a 80D tax benefit for health insurance premium and expense incurred towards preventive health checkup for self, spouse, dependent children and parents. This is subject to the terms and conditions mentioned in the Section 80D of the Income Tax Act, 1961.
The cost of maintaining a health insurance policy can be claimed under section 80D. This means that you enjoy tax benefit under section 80D. The amount is limited by the age of the insured under the plan.
Under section 80D, a deduction of ₹ 25,000 for self, spouse, and dependent children. However, for parents, it will depend on their age. If they are 60 years or above, i.e. senior citizens, then the maximum tax break would be up to ₹ 75,000; however, if their age is below 60 years, the highest deduction is up to ₹ 50,000. Also, if the taxpayer, spouse and parents fall under the senior citizen’s classification, ₹1,00,000 can be claimed as a full deduction. Refer to the below table to understand
| Taxpayer is below 60 years and parents below 60 years | Taxpayer is below 60 years and parents above 60 years | Taxpayer above 60 years and parents Above 60 Years | |
| Deduction* for self, spouse and dependent children | ₹25,000 | ₹25,000 | ₹ 50,000 |
| Deduction* for parents | ₹ 25,000 | ₹ 50,000 | ₹ 50,000 |
| Maximum deduction | ₹ 50,000 | ₹ 75,000 | ₹ 1,00,000 |
*Deduction = health insurance premium and preventive health checkup expense
Source: Income Tax Department, Government of India
The government has been focused on encouraging citizens to be health conscious and working towards a better lifestyle. Hence, in 2013-14, they implemented a preventative health check-up deduction that helps people to check risk factors early by detecting ailments and consulting a doctor regularly.
Hence, under Section 80D, individuals can avail tax benefit for preventative health check-ups of ₹ 5,000. The amount can be claimed for themselves, their spouses, their dependent children, or their parents with a limit of ₹ 25,000 for individuals and ₹ 50,000 for senior citizens. In addition, cash payments for preventive health checkups are eligible for rebates.
People who are 80 and above, also known as super senior citizens, are also covered under Section 80D of the Income Tax Act. This section states that super senior citizens can also claim a deduction of up to ₹50,000 towards treatments and medical checkups even if they do not have health insurance. For example: You are 60 years old and have paid a medical insurance premium of ₹29,000 for yourself and your dependents. Moreover, you have also paid ₹30,000 for your parents’ medical checkups who are super senior citizens. So, as per Section 80D of the Income Tax Act, you can avail a tax deduction of ₹59,000. Here’s how:
Section 80DDB contains deductions with respect to expenses incurred for medical treatment of specified diseases or ailments. It states that if an individual or an HUF has incurred medical expenses for treatment of specified disease or ailment, such expense is allowed as deduction, subject to conditions and a capped amount as specified under Section 80DDB of Income Tax Act.
In this section, the medical expenses incurred on treatment of specified diseases or ailments are mentioned and should not be confused with premium paid for health insurance bought covering such diseases or ailments. The payment for health insurance is covered under Section 80D of the Income Tax Act.
Under Section 80DD of the Income Tax Act, tax deduction can be claimed by individuals who are residents of India and HUFs for the medical treatment of a dependant with disability(ies) or differently-abled. The deduction amount will also include insurance premium paid towards specific insurance plans designed for a disabled dependant. The following disabilities are covered under section 80DD of the Income Tax Act, 1961:
Often people get confused between Section 80D and Section 80C of the Income Tax Act. Both these sections offer tax benefits. However, the limit fixed under Section 80C is higher than the limit mentioned in Section 80D. While Section 80C provides tax exemption of up to ₹1.5 Lakh, Section 80D offers tax exemption of up to ₹1 Lakh.:
Additionally, Section 80C includes investments made in financial products like small-savings schemes, ULIPs, life insurance, mutual funds, etc. Section 80D is for tax deductions on health insurance premiums.
A health insurance policy is an absolute necessity in the current scenario. It helps you to protect yourself and your family from sudden medical emergencies. There are a variety of options available for health insurance policies, depending on
your health requirements. At HDFC ERGO, you can opt for both individual as well as family floater plans.
HDFC ERGO health insurance products Optima Secure and Optima Restore have achieved 1st and 2nd ranks respectively in the Mint Beshak Insurance Ratings. These ranks were achieved among the top 15 health insurance plans for people below 65 years. Optima Secure and Optima Restore policies are available from 5
lakhs onwards. These policies cover expenses including hospitalisation charges, ambulance cost, AYUSH benefits, etc, as per the terms and conditions of the policy selected.
Under Section 80D, the Income Tax Act allows the health insurance
premium deduction. The health insurance premium deductions are available for self, family and dependent parents. The maximum amount of deduction on premiums paid for self (if senior citizen) and family plus premiums paid for separate health
insurance for parents (if senior citizens) could be ₹1,00,000 per year.
Income tax deduction on health insurance is quite significant; it helps in savings for taxes in the financial year for which tax is computed. However, income tax
laws are subject to change, do read the policy documents carefully before buying a health insurance policy.
Under Section 80DD of the Income Tax Act, tax deduction can be claimed by individuals who are residents of India and HUFs for the medical treatment of a dependant with disability(ies) or differently-abled. The deduction amount will also include insurance premium paid towards specific insurance plans designed for a disabled dependant. The following disabilities are covered under section 80DD of the Income Tax Act, 1961:
Hence, you can claim a sizeable tax benefits and deductions towards the health insurance premiums under section 80D of the Income Tax Act. The vital reason for buying a medical insurance is to secure your finances against future uncertainties. Not buying or delaying the purchase of a medical insurance may lead to a severe financial crisis during emergencies. Also, read every word of your policy to get proper medical aid and financial assistance.
There are both personal and public benefits of paying taxes. Paying taxes regularly helps an individual in visa application, loan sanction etc. On the public front, it helps in the development and maintenance of infrastructure, like roads, and government institutions.
Health insurance premium is a tax-deductible item under Section 80D of the Indian Income Tax Act. So, the premium you pay for your health insurance plan will help you in tax savings.
Yes, it can be availed. Health insurance as well as add-on health covers are tax-deductible under Section 80D of the Income Tax Act. Hence, you can easily get tax benefits against the premium paid, as per Section 80D.
For a person aged below 60 years, the limit for deduction under Section 80D is upto ₹25,000. The limit of ₹25,000 includes ₹5,000 on preventive health checkup. If the age of the insured is above 60 years, the limit for deduction increases upto ₹50,000.
Yes, you can avail tax benefits of up to ₹5,000 for preventative health check-ups under Section 80D of the Income Tax Act on a yearly basis.
No, cash is not allowed. You can claim deduction under section 80D in respect of medical insurance premium paid in any mode other than cash. However, payment on account of preventive health check-up can be made in cash.
Service taxes are paid over and above the premium amount and collected by respective agencies. This amount cannot be claimed as deductions.
Car Insurance 
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Health Insurance 
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Passenger Carrying Vehicle Ins. 
Compulsory Personal Accident Insurance 
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