Section 80D is a provision in the Income Tax Act that allows tax deductions on health insurance premiums paid for yourself, your family, including your parents. The deductions allowed under Section 80D include:
- Money spent as premium for health insurance policy
- Money spent on healthcare of family members including parents
The maximum deduction allowed under Section 80D for health insurance premiums is ₹25,000 in a financial year for a policy bought for yourself, your spouse, and your dependent children. If the age of the insured is 60 years or above, the maximum deduction allowed is ₹50,000. Additionally, you can claim a deduction of up to ₹25,000 (or ₹50,000 if the age of the insured is 60 years or above) for your parents. Section 80D also includes a deduction of ₹5,000 for any payments made towards preventive health check-ups, which is within the overall limit of ₹25,000 or ₹50,000, as the case may be. It is important to note that a deduction under Section 80D cannot be claimed if the payment for health insurance premium is done by cash.
