Section 80D: Deduction for health insurance premium

by Gopal Gidwani on August 22, 2009 · 8 comments

in Insurance,Uncategorized

Section 80D: Deduction for health insurance premium

 

Section 80D of the Income Tax Act contains provisions for deductions that can be availed for health insurance premium.
1) Deduction for health insurance premium paid for self and family
In a financial year, an individual can avail deduction, up to a maximum of Rs. 25,000, from taxable income for premium paid for health insurance. This premium can be paid for self and family. A family includes spouse and dependent children.The tax deduction can be availed by an individual or Hindu Undivided Family (HUF)
The amount that can be availed as a deduction can be the actual premium paid or Rs. 25,000, whichever is lower.
Where the individual or the spouse is a senior citizen (age 60 years or above), the deduction can be availed up to a maximum of Rs. 30,000.
The premium should be made in any mode other than cash.2) Deduction for health insurance premium paid for parents
In a financial year, an individual can avail additional deduction, up to a maximum of Rs. 25,000, from taxable income for the premium paid for health insurance for parents.

The tax deduction can be availed by an individual or Hindu Undivided Family (HUF)
The amount that can be availed as a deduction can be the actual premium paid or Rs. 25,000, whichever is lower.
Where any parent is a senior citizen (age 60 years or above), the deduction can be availed up to a maximum of Rs. 30,000.
The premium should be made in any mode other than cash.

Deduction for preventive health check-up
An individual can avail a deduction of Rs. 5,000 from taxable income for payment made for a preventive health check-up. This payment can be made for a preventive health check-up for self and family.
The payment for the preventive health check-up can be made by any payment mode, including cash
The deduction of Rs. 5000 for the preventive health check-up is a part of the overall Rs. 25,000 or Rs. 30,000, whichever the case may be, deduction available.

Please let us know your comments on the article by commenting below or writing to us gopal_gidwani@yahoo.com

 

{ 8 comments… read them below or add one }

Nipun May 14, 2011 at 9:00 am

Hi
I am interested in knowing more about various medical insurance plans available and their pros and cons. Your articles are very interesting and the website is very well managed.

Thanks a lot

Reply

Gopal Gidwani May 15, 2011 at 5:29 am

Hi Nipun,

Thanks for your kind words about the website and the articles.

Do let me know what is your requirement and I will guide you accordingly:
1) Are you looking for a health plan for a single individual or a health plan for a family?
2) What is the amount of cover you are looking at?
3) Which city are you from?
4) What are the facilities you are looking at from the health insurance plan?
5) Do you have any existing health cover?
6) Anything else that you would like to mention from your side?

Do let me know the above information and I will let you know which health plan suits your requirement

Best Regards
Gopal Gidwani

Reply

sd January 17, 2013 at 7:24 pm

hi! i find your website very good and ur articles easy to understand. i want a health cover for my family and me. i am single and live with my parents and two younger sisters.we dont have any health insurance. we live in vadodara.what i want is a policy which gives me cashless facility.all of us are healthy and dont have any illness.can i buy something like a family floater plan which covers us if anyone one of us get sick at a time? that way i dont have to worry about different premiums being paid. i wud like a cover of 3 lacs and the premium should be payable in instalments rather than at one go

Reply

Gopal Gidwani April 14, 2013 at 10:21 am

Hello SD,

You may have a look at the family floater health plans of Apollo Munich or Max Bupa. All the plans come with life long renewals.

Reply

Vijay Prakash February 25, 2013 at 9:47 am

Dear Sir,
This is a fabulous website & give more guidance for all user.

Sir, i have own business in Delhi & earn monthly income 15000 pM , i wanna pension plan from age of 50 Years. & now my age is 30 years.

i have a daughter 2 months please suggest a plans for her marriage & high Education. after 21 years.

also suggest me a investment plan which gives me 20 lac after 20 years. with CIR & death benefits.

also suggest me about Appolo Munich Optima Restore. Policy & HDFC Lifes Click to protect Plans.

Reply

Gopal Gidwani April 14, 2013 at 7:13 am

Hello Vijay,

For your daughter’s education, marriage and your retirement you may consider investing in mutual funds. You may choose a mix of equity, debt and balanced mutual funds. For more information on the types of mutual funds you may refer the below article
http://www.bachatkhata.com/2012/03/investing-in-mutual-funds.html

Also open a PPF account and deposit money in it every month. Make use of the entire annual limit of Rs. 1 Lakh.

With regards to term insurance you may consider Click2Protect from HDFC or Protector Plus from Birla Sunlife or ePreferred from Kotak Life. All the 3 are good term plans.

For health insurance you may look at plans from Apollo Munich or Max Bupa. All their plans come with lifelong renewal. Consider taking a family floater health plan for your entire family.

Reply

Apurba November 14, 2017 at 11:45 am

Dear Sir
First of all I must say how I got into your web site..i went to quora to read about cash karo as I wanted to have a view of others about cash karo..from there I went to your comments on cash karo.The way of your evaluation or expressing views I found quite neutral and transparent.So afterwards your website name seemed to me fantastic and I visited there for a quick glance.
I found the necessary comparison about various cancer protection plans.So all in all I found your website relevant.And thanks for all your effort.At the end as few guys already asked you to write comparison on medical policies or health plan I too REQUEST you to carry out some valuable studies for our greater help.Thanks and regards.

Reply

Gopal Gidwani November 21, 2017 at 2:40 pm

Hello Apurba,
Thanks for the kind words. I will consider writing an article on comparison of health insurance plans

Reply

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