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Deduction under Section 80D – Tax Saving through Medical Insurance

Contents

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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

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