Health insurance premiums are one of the few deductions that double as genuinely useful financial protection rather than just a tax-saving instrument. Section 80D lets you claim a deduction for premiums paid for yourself, your family, and your parents — but the limits and conditions are often misunderstood.
| Premium Paid For | Deduction Limit |
|---|---|
| Self, spouse & dependent children (all below 60) | ₹25,000 |
| Self, spouse & dependent children (any member 60 or above) | ₹50,000 |
| Parents (below 60) | Additional ₹25,000 |
| Parents (60 or above) | Additional ₹50,000 |
| Preventive health check-up (within above limits) | Up to ₹5,000 |
This means a taxpayer below 60 with senior citizen parents can claim up to ₹25,000 (self/family) + ₹50,000 (parents) = ₹75,000. If the taxpayer is also 60 or above, the maximum possible is ₹50,000 + ₹50,000 = ₹1,00,000.
The deduction can be claimed for premiums paid for yourself, your spouse, dependent children, and parents (whether or not they are dependent on you). Premiums paid for siblings, in-laws, or non-dependent adult children are not eligible. Each family member's premium is counted toward the limit applicable to their age category — for example, if you pay your senior citizen father's premium, it falls under the "parents 60+" sub-limit of ₹50,000, separate from your own family's limit.
Within the overall limits above, up to ₹5,000 can be claimed for preventive health check-ups for self, family and parents combined — and this can be paid in cash (unlike insurance premiums, which must be paid through non-cash modes). This ₹5,000 is not an additional deduction on top of the ₹25,000/₹50,000 limits; it is a sub-limit within them.
If your employer provides group health insurance and the premium is paid entirely by the employer (not deducted from your salary), you generally cannot claim 80D for that premium since you haven't borne the cost. However, if you pay an additional premium yourself — for example, to extend cover to parents under an employer's group scheme, or to top up the sum insured — that portion paid by you is eligible, provided it's paid through a non-cash mode.
Premiums must be paid via any mode other than cash (cheque, net banking, card, UPI) to qualify for 80D — except for the preventive health check-up component, which can be paid in cash. Keep payment receipts and policy documents handy, as the deduction is based on amounts actually paid during the financial year, not the policy's annual due date.