The importance of health and well-being in a family cannot be overemphasised, especially in today’s busy world. Hence, getting a family health insurance plan is important in medical emergencies, which can be very stressful and costly.

This particular type of insurance enables all family members to be grouped under a single policy, thus offering them protection and security. Here, we will dive deeper into family health insurance and how you can benefit from tax deductions under Section 80D of the Income Tax Act.

Understanding Section 80D

According to the Income Tax Act, a section known as 80D allows one to claim tax exemptions on the premiums paid for health insurance policies. This section stimulates individuals to take health insurance for themselves and their families. For example, the premium paid is allowed as a tax credit on an individual’s actual assessable income.

Section 80D: Understanding Deductions & Eligibility

Below are the criteria and benefits associated with claiming deductions under Section 80D:

Who Can Claim Deductions?

• Individual Taxpayers: Deduction for self, spouse, and children
• Hindu Undivided Family (HUF): Deduction for any member of the HUF

Types of Policies Covered

• Health insurance policies for individuals and families
• Policies covering parents and senior citizens
• Preventive health checkups

You can even get a tax benefit of ₹25,000 for the health insurance premiums paid for yourself, your spouse, and your dependent children. Moreover, you can also claim a deduction of up to ₹ 25,000 for yourself and up to ₹ 50,000 for parents who are senior citizens regarding premiums paid towards a medical insurance scheme.

Maximising deduction cannot touch ₹ 50000 (₹ 1,00,000 if the taxpayer or both parents are senior citizens).

How Much Tax Benefit Can You Claim for Health Insurance Under Section 80D?

The deduction towards health insurance premiums under Section 80D of the IT Act has been initiated to spread awareness about the need for health coverage. Many people need clarification on whether health insurance is tax-deductible and how much they can save.

Here’s a look at how much health insurance tax deduction you can get:

• The deduction limit depends on the age of the primary policyholder.
• If you pay the premiums, you can claim a deduction for an individual/family floater policy and a separate policy for dependent parents.
• If you are under 60 years old, the maximum deduction is ₹25,000.
• If you are 60 years or older (senior citizen), the maximum deduction is ₹50,000.
• HUFs are eligible for a claim of up to ₹25,000 if the Karta is under 60 years old and up to ₹50,000 if the Karta is 60 or older.
• NRIs can claim up to ₹25,000 (regardless of age) if they buy a health insurance policy in India for themselves or their parents.
• The Preventive Health Checkup (PHC) allowance can be claimed if you still need to reach the maximum deduction limits mentioned above.
• The PHC limit is ₹5,000 for those under 60 and ₹7,000 for senior citizens.

What Deductions Are Allowed Under Section 80D?

Below is a table summarising the deductions allowed under Section 80D for various categories:

Category	Maximum Deduction (₹)	Remarks
Self, spouse, and children	25,000	If all are below 60 years.
Self, spouse, and children	50,000	If any member is 60 years or above.
Parents (below 60 years)	25,000	If parents are below 60 years.
Parents (60 years or above)	50,000	If parents are senior citizens.
Preventive health check-up	5,000	Included in the overall limit of ₹25,000/₹50,000.
Total deduction possible	1,00,000	If an individual and parents both are above 60 years.