Medical Insurance – Applicability, Deductions & Policies - Section 80D

What does Section 80D entail?

Section 80D allows any individual or HUF to deduct medical insurance premiums paid in any given year from their total income. Top-up health insurance and critical sickness plans are also eligible for this deduction.

The advantage is accessible not just for purchasing a health insurance coverage for yourself, but also for purchasing a policy to cover your spouse, dependent children, or parents.

The nicest aspect is that it goes above and beyond the Section 80C deductions.

Who is eligible for a Section 80D deduction?

Individuals and HUF taxpayers are the only ones who can deduct medical insurance premiums and medical expenses for older persons.

Individual or HUF taxpayers can get insurance for:

• 
  

• Self

• Spouse

• Children who are reliant

• Parents

This deduction is not available to any other entity. A company or a firm, for example, cannot claim a deduction under this clause.

Payments that qualify for a Section 80D deduction

Section 80D allows an individual or a HUF to claim a deduction for the following payments:

• 
  

• A medical insurance premium paid in any form other than cash for oneself, one's spouse, one's children, or one's dependant parents.

• Expenses incurred as a result of a preventative health check-up

• Medical costs incurred on the health of a senior adult (60 years or older) who is not covered by a health insurance plan.

• Contribution to the Central Government's health scheme or any other government-approved scheme.

Deduction available under Section 80D

Individual

For self-insurance, spouse insurance, and dependent children insurance, an individual can claim a deduction of up to Rs 25,000.

If your parents are under the age of 60, an additional/separate deduction of Rs 25,000 is available, and if they are over 60, an additional/separate deduction of Rs 50,000 is allowed.

If both the taxpayer and his or her parents are over 60 years old and have medical insurance, the maximum deduction available under this clause is Rs 1,00,000.

Senior citizens over the age of 60 are classified as elderly and extremely senior citizens.

HUF

A HUF can claim a deduction for a mediclaim paid for any of its members under Section 80D.

If the insured member is under 60 years old, the deduction will be Rs 25,000; if the insured is 60 years old or above, the deduction will be Rs 50,000.