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:
Therefore, an assessee can claim a maximum deduction of Rs. 1,00,000 in a financial year (If his age and his parents age is more than 60 years)