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Section 80D provides for tax deduction from the total
taxable income for the payment (by any mode other than
cash) of medical insurance premium paid by an Individual
or a HUF. This tax deduction is available over and above
the deduction of Rs. 1,50,000 under Sec. 80C.

Recommended Read: How to Save Tax legally in 8

different ways through Tax Planning

The deduction under Sec 80D is allowed for making a

payment to effect or keep in force an insurance policy
which:-

1. In case of an Individual:- Is for the health of the

assessee or on the health of the wife or husband,
 dependent parents or dependent children of the
assessee, or
2. In case of HUF: Is for any Member of the Family

The Deduction that can be claimed under Sec. 80D at the

time of filing of income tax return is the sum of the
following:-
1. In case the payment of medical insurance premium is
paid by the assesse for himself, spouse, dependent
children – Rs. 25,000. In case, the person insured is a
Senior Citizen, the deduction allowed should be Rs.
30,000.
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2. In case the payment of medical insurance premium is
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 paid by the assesse for parents, whether dependent or through Email
not – Rs. 25,000. In case the parents of the Assessee
are Senior Citizens the deduction allowed under
Section 80D should be Rs. 30,000. The deduction for
senior citizens has been increased from Rs. 30,000
to Rs. 50,000 from Financial Year 2018-19 onwards
Why is Cess and
(Announced in Budget 2018).
Surcharge levied
As the health insurance cover for elderly comes at a separately?
relatively higher price, it is necessary to encourage senior
citizens to get themselves medically insured and
accordingly, the quantum of tax deduction allowed under
section 80D in case the person insured is a senior citizen
is Rs. 30,000 as stated above.
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and Rules for
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Thus, the total maximum deduction that can be claimed Standard

under section 80D is as follows Deduction for
Salary and Rent
Medical Insurance
Premium paid in respect of
Income – Budget
Total
Deduction
2018
Parents
Description Self, Spouse
(whether under Sec.
& Dependent
dependent or 80D
Children
not)
No-one has
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attained the age of Rs. 25,000 Rs. 25,000 Rs. 50,000
60 years
Assessee and his
family is less than
60 years & Rs. 25,000 Rs. 30,000 Rs. 55,000
parents are above
60 years of age
TDS on Property
Assessee and his – NDTV
parents have
attained the age of Rs. 30,000 Rs. 30,000 Rs. 60,000
60 years and
above
The balance income of the taxpayer after allowing
deductions would be taxable as per the income tax slabs
of the taxpayer.

Recommended Read: Income Tax Slab Rate

An Individual Assessee pays during Financial year

2017-18, medical insurance premium as under:- Subscribe to our
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1. Rs. 24,000 as insurance policy premium on his own
health & First name *

2. Rs. 29,000 as insurance policy premium on the health

of his parents
Email *

In the above mentioned scenario the assessee would be

allowed a deduction of Rs. 49,000 (Rs. 24,000 + Rs.
Occupation
25,000) in case neither of his parents is a senior citizen. CA/CA Student/ Tax

However, if any of his parents is a senior citizen, he will be Consultant/Accountant

allowed a deduction of Rs. 53,000 (Rs. 24,000+ Rs.

Salaried Employee
29,000)
Business/
Further in the above example, if the cost of insurance on Professional/ Contract
the health of the parents is Rs. 29,000/-, out of which Rs. Employee
17,000 is paid by the son and Rs. 12,000 is paid by the
father (who is a senior citizen), out of their respective
taxable income, the son will get a deduction under Section
80D of Rs. 17,000/- (in addition to Rs. 24,000 on his
health) and the father will get a deduction of Rs. 12,000.

*The deduction for senior citizens has been increased to

Rs. 50,000 with effect from Financial Year 2018-19
onwards.

SPECIAL DEDUCTION FOR SUPER

SENIOR CITIZENS
Super Senior Citizens are those citizens who are above
the age of 80 years. Practically, there are very few insurers
who provide medical insurance to people who are above
the age of 80 years. And therefore, super senior citizens
are unable to get medical insurance and are also not able
to claim the benefit of Section 80D.

To ensure that the super senior citizens are also able to

take the benefit of this section, an amendment was
introduced in Section 80D in Finance Act 2015 which
allowed deduction under Section 80D to senior citizens for
all the medical expenses incurred by them.

After the introduction of this amendment, the total

deduction allowed to super senior citizens for payment
Medical Insurance Premium + Medical Expenses is Rs.
30,000. This limit has been increased to Rs. 50,000 with
effect from Financial Year 2018-19 onwards.

SECTION 80D: DEDUCTION FOR

PREVENTIVE HEALTH CHECK-UP
A new deduction that has been allowed under this section
is deduction for Preventive Health Check-up. A
deduction of Rs 5000 would be allowed under Section 80D
for payment of preventive health check-up of either the
individual himself or his family members which include
parents and dependent children.

This deduction of Rs. 5000 is not in addition to the

deduction of Rs. 25,000/Rs 30,000/Rs. 50,000 stated
above but is included in the above deduction.

It is important to be noted that Rs. 5000 is the maximum

total deduction allowed. This deduction is not per person
but in total. So if a person pays any amount for preventive
health check-up of himself + dependent children + parents,
the gross total deduction allowed would be Rs. 5000. This
deduction will apply from Assessment Year 2013-14 and
onwards.
 Karan Batra
Karan is CA by Qualification with the
rare distinction of being awarded All
India Rank 22. He is also the founder
of this website and loves to help
people with their Tax Queries.

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