Claim tax benefits for yourself and your family As per Section 80D of the Income Tax Act, you are eligible to deduct premiums paid towards your health insurance policy for yourself, your spouse, dependent children, and parents. This applies even for mediclaim, family floater, critical illness, or top-up policies taken from any IRDAI-approved insurance company. For claiming the deduction, you need to pay the premium in non-cash mode—like UPI, card, cheque, or net banking.
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Know the maximum deduction limits permissible The limit of deduction varies based on the insured individuals. For medical insurance premium you pay on behalf of yourself, spouse, and children, you can claim ₹25,000 annually. If you're also paying your parents' health plan, you can claim an additional ₹25,000, or ₹50,000 if they are senior citizens (60 years and above). The total deduction under Section 80D would, thus, be ₹1,00,000 if you and your parents are both seniors.
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Include preventive health check-ups in the same limit Preventive health check-ups fall under 80D, in the above limits. You can even claim up to ₹5,000 for check-ups per year, even when paid in cash. This is not in addition to the 80D cap but a part of it. Suppose your premium is ₹22,000 and you spent ₹3,000 on a check-up. Your total deduction still remains at ₹25,000 for the year.
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HUFs and non-salaried individuals can also make use of 80D This provision is not restricted to the salaried class. HUFs also stand eligible to take deduction up to ₹25,000 on insurance plans on HUF members. Freelancers or businessmen can also make use of this exemption if the payment is made from the taxable income and via the non-cash mode.
Place the correct documents to your employer or in your ITR If salaried, submit evidence of premium payment and policy document to employer so that the benefit is included in Form 16. Otherwise, claim deduction directly while submitting ITR. Obtain receipt from the insurer showing premium paid, payer's name, and policy term. This helps smooth tax claim during scrutiny.
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Enjoy extra benefit if you have more than one policy You can claim multiple 80D deductions if you’ve taken different policies covering different eligible members. For example, one for self and family, and another for senior citizen parents. Each policy can be claimed separately up to the relevant limit, provided you’ve paid the premiums and the insurer is recognised under the Act.
