ITR Filing 2025: How To Claim Health Insurance Tax Benefits? Section 80D Deductions Explained

When it comes to filing your Income Tax Return, taxpayers often look forward to maximising benefits through various deductions and exemptions.

Among the various sections of the Income Tax Act, 1961, Section 80D provides a valuable opportunity for taxpayers to reduce their total taxable income. Taxpayers can claim deductions on premiums paid for medical insurance under this section.

With rising healthcare costs, a health insurance plan not only offers financial protection during medical emergencies but also helps you save on taxes.

Let's take a look at the eligibility, limit and other key details about the deductions under Section 80D of the I-T Act.

Section 80D allows a taxpayer to claim deductions for premiums paid towards health insurance policies. These deductions are available for insurance bought for self and family members, including parents.

The section allows deductions for:

• Medical insurance premiums, including top-up and critical illness plans.

• Medical expenses for senior citizens (if no insurance is taken).

• Preventive health check-ups, within the prescribed limits.

Under Section 80D, taxpayers can claim a deduction of up to Rs 1 lakh on premiums paid for medical insurance. This includes coverage for self, spouse, dependent children and parents.

For individuals below 60 years, a maximum deduction of Rs 25,000 is allowed. If the insurance is for senior citizens (aged 60 or above), the limit is capped at Rs 50,000. When covering both self and senior citizen parents, the combined deduction can go up to Rs 1 lakh.

Any individual or Hindu Undivided Family paying a premium for a health insurance policy can claim deductions under Section 80D.

The policy must be taken in the name of:

• Self

• Spouse

• Dependent children

• Parents (whether dependent or not)

The amount of deduction you can claim under Section 80D depends on the policy coverage and the age of the policyholder.

For Self, Spouse, Children:

• Up to Rs 25,000 in a financial year if the people insured are below 60 years of age.

• Up to Rs 50,000 in a financial year if the taxpayer or their spouse is aged 60 years or above (senior citizen).

For Parents:

• An additional Rs 25,000 per year for parents below 60 years.

• This increases to Rs 50,000 if either parent is a senior citizen.

Total Deduction Possible

• If you are under 60 and paying a premium for senior citizen parents, you can claim up to Rs 75,000.

• If both you and your parents are senior citizens, the total deduction can go up to Rs 1 lakh.

You can also claim a maximum of Rs 5,000 towards expenses for preventive health checkups. But this amount is included within the overall limit of Rs 25,000 or Rs 50,000, as applicable.

So, if you spend Rs 20,000 on premiums and Rs 5,000 on checkups, you can claim the full Rs 25,000. Payments made towards preventive health checkups can be made in cash.

Overall, Section 80D is a valuable tool to not only secure your family's health but also gain tax benefits. When filing your ITR, make sure to collect all premium receipts, ensure they are paid in the correct mode and claim your deduction correctly.