Topic 4: How much tax benefit can be claimed u/s 80D? (Rules + Limits)

Are you clear about the tax saving which you can do when you pay health insurance premiums every year? You will be glad to hear that its over and above sec 80C.

Yes, it comes under a separate section called section 80D!

What is section 80D?

Health Insurance policies have become very famous in last 10 yrs and to encourage it, the govt gives tax benefit when you pay the premium for yourself, your family or your parents

Section 80D defines all the rules and limits related to health insurance premium payment and tax saving.

How much can you claim under section 80D?

One can claim deduction of premium amount on health insurance of self + family (spouse + dependent children below 18 yrs.) and parents. If one pays a health insurance premium of his brother or sister then he/she will not be able to claim a tax deduction. To make it more clear, I have mentioned the list of people who will come under this benefit –

1.Self
2.Spouse
3.Dependent Children (below 18 yrs.)
4.Parents

How much you can claim Tax benefit u/s 80D?

1.You can claim maximum Rs. 25000 of deduction for premium paid on health insurance of you, your spouse and children (under the age of 18 yrs.), if you are below 60 years

2.The same amount of Rs. 25000 you can claim for deduction of premium that you pay for your parents (father+mother). And if the age of you or your parents is above 60 years then the limit will increase to Rs. 50,000/- in each case. In the above limits, exemption of Rs. 5000 for yearly health check is included.

2 Benefits into 1

Getting tax deductions on health insurance is a wonderful thing. Health Insurance in itself is a very important financial product most of the people should buy and you are also getting some tax benefit on it. So, do buy a health insurance for yourself, your family and parents to protect your wealth and save tax.
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