This deduction is available to an individual or HUF whether resident or non resident.
In case of an individual, deduction shall be aggregate of the following:
Premium paid for self, spouse and dependent children. Deduction allowed is lower of:
- Amount of premium paid for medical insurance.
- Maximum of Rs.25,000 p.a.
Premium paid for parents (less than 60 years) whether dependent or not. Additional Deduction allowed is lower of:
- Amount of premium paid for medical insurance
- Maximum of Rs.25,000 p.a.
Note: If the parents are senior citizens then limit has been raised to Rs.50,000p.a ( It has been increased from Rs.30,000 in Budget 2018).
A summary of deduction allowed under Section 80D is explained in table below:
| Nature | Age less than 60 years | Age more than 60 years | Age less than 60 years |
|---|---|---|---|
| Medical Insurance | 25,000 | 50,000 | 25,000 |
| Central Government Health Scheme (CGHS) | 25,000 | 50,000 | - |
| Preventive Health Check-up | 5,000 | 5,000 | 5,000 |
| Medical Expenditure | - | 50,000 | - |
| Maximum deduction | 25,000 | 50,000 | 25,000 |