Section 80D: Income Tax Deduction for Medical Insurance

Deduction under section 80D is available if the following conditions are satisfied:

1. The taxpayer is an individual (may be resident/non-resident or Indian citizen/foreign citizen) or a Hindu undivided family (may be resident or non-resident). 2. Payment should be made out of income chargeable to tax. 3. Payment should be made by any mode other than cash. However, payment on account of preventive health check-up can be made by any mode (including cash).

Maximum Deductible Amount:

The Maximum deductible amount and other relevant points are given below:

Notes:

1. Family includes individual, spouse of the individual and dependent children of the individual.

2. Parents include father and mother (dependent or otherwise). Father-in-law and Mother-in-law are not included.

3. The aggregate payment on account of preventive health check-up of self, spouse, dependent children, father and mother cannot exceed Rs. 5,000.

4. The above payments [given under (A) and (B) should be made by any mode other than cash. However, payment on account of preventive health check-up can be made by any mode (including cash).

5. “Senior Citizen”is a resident individual who is at least 60 years of age at any time during the previous year.

6. “Super Senior Citizen” is a resident individual who is at least 80 years of age at any time during the previous year.

7. In case of single premium health insurance policies having cover of more than one year, the aforesaid deduction shall be allowed (from the assessment year 2019-20) on proportionate basis for the number of years for which health insurance cover is provided.