Section 80D of Income Tax Act: Deductions Under Medical Insurance, Limit, Eligibility And Policies

Yes, non-resident Indians (NRIs) are also eligible to claim a tax deduction under section 80D of the Income Tax Act for health insurance premiums. Like Indian residents, they can claim up to INR 25,000 deduction for insurance of self, spouse, and dependent children.

Yes, a person can claim a tax deduction under section 80D of the Income Tax Act in case he/she has a foreign health insurance policy. However, for this, the company should be registered with the Insurance Regulatory and Development Authority of India (IRDAI).

Yes, NRIs, under section 80D of the Income Tax Act, for health insurance premiums they paid in India and got the medical treatment abroad, as long as they fulfill their tax liabilities in India.

While claiming a tax deduction under section 80D of the Income Tax Act, NRIs need to gather receipts for health insurance premiums, payment proof (rather than cash), documents of policy verifying insured individuals, and preventive health check-up bills (if applicable).

At present, under the new tax regime, Section 80D of the Income Tax Act is not available. However, the government and tax officials in India are discussing adding this section to the new tax regime in the 2025 budget. So, considering the financial situation, it is advisable for NRIs to choose the right tax regime.