Things to know about Health Insurance benefits under Section 80D

Health insurance is beyond essential, right? It is more of a necessity now. No one is going to be forcing you to get one, but at the end of the day, you just know you need it. We need to safeguard ourselves against all of the dangers that come our way, and though we can’t stop them – we have one way to pay for the hospital through it, and that is health insurance.

But, did you also know you get tax benefits over your health insurance, don’t be too shocked; it is possible. All of that is possible through Section 80D.

What is Section 80D, Though?

Medical insurance premiums that are paid in any given year are deductible from the total income for any person or HUF under Section 80D. Additionally, top-up health plans and critical illness insurance are eligible for this deduction.

The deduction benefit is accessible when purchasing a health insurance plan for yourself, your spouse, your dependent children, or your parents.

The Union Budget 2018 was unveiled on February 1 by former finance minister Arun Jaitley. He suggested raising the cap on the Section 80D tax deduction for health insurance premiums for all senior citizens from Rs. 30,000 to Rs. 50,000. The country’s farmers, women, and older residents are given particular attention in the 2018 budget. 

The government has introduced provisions for tax deductions on health insurance premiums and medical expenses incurred by those aged 60 and above in an effort to enable senior citizens to lead dignified lives in their old age (below 80 years).

Senior citizens and anyone who pays health insurance premiums on behalf of a senior citizen, such as a parent or spouse, will benefit from the current rise in tax deductions on premiums that are paid toward any health insurance policy for a senior.

There are Some Essentials that You Would Have to Know In the Case of Section 80D

There are just some aspects, though, that could never be overlooked in the case of Section 80D:

Who Can Claim Deductions Under Section 80D?

A claimant for the Section 80D deduction is:

  • Indian or non-Indian person for themselves, their spouse, their dependent children, and their parents (whether dependent or not).
  • HUF for each individual member.
  • NRIs are further qualified for this deduction.

Section 80D is Different from Section 80C.

There are times when Section 80C and Section 80D are confused. While Section 80C allows deductions up to Rs. 1.5 lakhs annually, Section 80D allows deductions up to Rs. 65,000, subject to restrictions.

Section 80C comprises investments made in a variety of financial instruments, such as minor savings plans, life insurance premiums, mutual funds, etc., whereas Section 80D is only meant for deductions on health insurance premiums paid.

Section 80D Amount

The expense must be done in a method other than cash in order to qualify for the deduction under Section 80D. Despite the fact that paying cash is permitted, preventive health checkup expenses are not. Section 80D allows for the deduction of the following expenses:

  • For medical insurance premium that is paid by self and family – Rs. 25,000 – Rs. 50,000
  • For medical insurance premium that is paid for the parents – Rs. 25,000 – Rs. 50,000
  • The expenditure on preventive health checkups – Rs. 5,000
  • For the medical expenditure of senior citizens or super senior citizens – Rs. 50,000.
  • The contribution to CGHS – Rs. 25,000 – Rs. 50,000

What is Excluded in Section 80D?

In accordance with section 80D, no deductions may be made on the following sums:

  • Money-only premiums (except for preventive health checkups)
  • premiums and expenditures that were paid by a party other than the taxpayer.

Preventive Health Under Section 80D

In 2013–14, the government instituted a preventative health check-ups deduction to motivate the people in order to take a more proactive move to the health. Through a frequent health examination, the goal of preventative health checkups is to spot any illnesses early on and reduce risk factors.

A deduction of Rs 5,000 is allowed under this Section 80D for any payments made for preventative health check – ups. This deduction would not cross the overall cap of Rs. 25,000 or Rs. 50,000, as it is applicable.

The individual would also claim the deduction on behalf of himself, any dependent children, his spouse, or also his parents. Cash is always accepted as payment for preventive health examinations.

Mediclaim Deductions Under Section 80D

The deduction for Mediclaim under Section 80D occurs to maintain the validity of your insurance coverage. This coverage is available for both the policyholder and the policyholder’s spouse. In the event that you become ill and need medical attention, Mediclaim is crucial because it covers your medical expense expenditures.

Things You Can’t Just Overlook While Getting your Medical Health Insurance

  • You cannot deduct the cost of the medical insurance for your brother, sister, grandparents, uncles, aunts
  •  or other family members when they start claiming tax advantages.
  • Children and working adults cannot claim the premium as a tax deduction.
  • Both of you could claim a deduction if you and a parent each made a portion of the payment.
  • The service tax and cess part must not be deducted from the premium amount when taking the deduction.
  • The company approved and provided group health insurance premium is not deductible.
  • Any form of premium payment, which is other than cash would always be eligible for the deduction. Therefore – a premium paid online or with a credit card is also eligible for a deduction.


Medical emergencies somehow always take you by surprise – that is why you always need medical health insurance that can cover these sudden expenses. But, there is one way you can make the most of it, and that is through taxes, so you just might want to know everything you can about it.

By Roland

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