Section 80D of the Income Tax Act permits individuals, including Indian residents and non Indian residents (NRIs), as well as Hindu Undivided Families (HUF), to claim a deduction on expenses incurred towards their medical health insurance premiums paid for themselves, their children, parents, spouses, and dependents.
You can claim up to INR 25,000 in a financial year as per the current rules. For senior citizens (above age 60), the limit increases to INR 50,000 if the health insurance coverage is age-free. In a nutshell, depending on how it is covered under the health insurance policy, one can claim up to INR 75,000 to INR 1,00,000.
| Self and family (non-senior Citizen) | INR 25,000 | INR 5,000 | INR 25,000 |
| Self and family + parents (non-senior citizen) | INR (25,000+25,000)= INR 50,000 | INR 5,000 | INR 50,000 |
| Self and family (non-senior citizen) + senior and citizen parents | INR (25,000 + 50,000) = INR 75,000 | INR 5,000 | INR 75,000 |
| Self and family (senior citizen) + senior citizen parents | INR ( 50,000 + 50,000) = INR 1,00,000 | INR 5,000 | INR 1,00,000 |
Let us assume that the concerned taxpayer is 60 years old and is paying an annual premium for their and the family's health insurance of the amount INR 32,000. Apart from this, the taxpayer is also paying the premium on its parents' coverage, who are 80 years old. In these relevant scenarios, the 80D deductions available are:
1: The taxpayer who is a senior citizen and their dependents can claim the tax deduction on the entire premium paid, which is INR 32,000. Similarly, for the parents (senior citizens), the author can avail a deduction of INR 35,000.
2: In a nutshell, the entire premium payment of INR 67,000 can be claimed as an 80D deduction.
The Savetaxs 80D calculator enables you to calculate the deduction that you are eligible to claim on the medical health insurance premium in seconds.
To use the Savetaxs 80D calculator, please follow the steps mentioned below:
Step 1: Choose the financial year
Step 2: Now, select whether you are paying taxes under the new regime, which is under 115BAC.
Step 3: Enter the individuals under whose name the policy is, whether they are above the age of 60 years or not.
Step 4: Enter the value of the preventive health check-up and the medical insurance premium amount.
Step 5: Now, repeat steps 3 and 4 for your parents' medical policies as well.
Step 6: Once done, the Savetaxs 80D calculator tool will compute the deduction and will reflect that on the screen.
Savetaxs 80D calculator comes with an array of benefits:
Reduces the Complexity: The foremost benefit of an 80D calculator is that it minimizes the calculation complexity. Just enter the figures, and our calculator will quickly calculate the relevant deduction amount, saving individuals from the hassle of manual calculations, which might sustain a few errors too.
Saves Time: The Section 80D calculator tool calculates the relevant deduction amount in seconds, hence saving one's precious time.
Saves Money: Our tool is entirely free, with no hidden costs or subscription fees.
Individuals, including Indian residents, non-Indian residents (NRIs), and HUFs, can claim a tax deduction under section 80D. So, individuals and HUFs who have paid health insurance for themselves, their dependent children, spouse, and/or parents can use the Savetaxs 80D calculator to compute their deductions.
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Section 80D allows you to claim a deduction on the premiums for health insurance you have paid and the cost of a preventive health examination.
The deduction limit under section 80D of the Income Tax Act for individuals below the age of 60 years is INR 25,000. This limit includes a Rs 5,000 preventive health examination. If the individual is above the age of 60 years, in such a case, the deduction limit is increased to INR 50,000.
The Savetaxs 80D calculator computes tax deductions eligible under section 80D of the Income Tax Act for health insurance premiums paid, as well as preventive health checkups, based on the user's entries.
Any individuals (Non-resident Indian or resident) or a Hindu Undivided Family (HUF) who have paid for their medical insurance and preventive health check-up expenses.
You must enter:
The deduction limit section 80D offer is:
Self, spouse, and children: Up to INR 25,000 extended to INR 50,000 if you are a senior citizen.
Parents: Up to INR 25,000, extended up to INR 50,000 if parents are senior citizens.
Preventive health check-up: Additional INR 5,000 within the overall limit.
Yes, they can be claimed, but only up to INR 5,000, provided they are within the overall limit under Section 80D.
