Key idea
Health insurance premiums are deductible, on top of 80C. Protection and a tax break in the same payment.
Section 80D lets you deduct the premiums you pay for health insurance, separate from and in addition to 80C. Like 80C, it applies under the old regime. It rewards a decision you should be making anyway: covering your family's health.
The limits
| Whose cover | Deduction up to |
|---|---|
| Self, spouse, children | ₹25,000 |
| Parents (below 60) | + ₹25,000 |
| Parents (senior citizens) | + ₹50,000 |
| Preventive health check-up | ₹5,000 (within the above) |
So a person insuring their own family and their senior-citizen parents can deduct up to ₹75,000 in a year. Premiums for senior citizens carry a higher limit because their cover costs more.
The point beyond the tax
One condition: the premium must be paid in a non-cash mode (the preventive check-up is the exception). Keep the receipt; you will need it at filing time.
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