ITR Filing: Eligibility To Limits, Section 80D Deductions For Health Insurance Explained

As the Income Tax Returns (ITR) filing for the financial year 2024-25 has started, it’s time to put all your documents together to claim deductions. You can claim deductions under various sections of the Income Tax Act, 1961, for tax-saving investments and various expenses.

One of the key deductions that can help you save more on total tax outgo is Section 80D of the Income Tax Act. This section lays out provisions to claim deductions for payments towards health insurance plans.  

If you want to know about the eligibility criteria and the deduction limit under Section 80D, let’s take a detailed look at the key factors.

Before delving deep into the Section 80D tax benefits, it’s important to note that you can claim the deductions for health insurance only under the old tax regime. If you choose the new tax regime, this benefit cannot be claimed.

Under Section 80D, you can claim a deduction of up to Rs 1 lakh in a financial year for health insurance premiums. The provision allows the tax deductions on the health insurance premiums paid by the taxpayer for the spouse, children and parents.  

Here are the maximum limits for deductions under Section 80D for self, children, spouse and parents in a financial year:  

• Premium paid for self, spouse and children: Rs 25,000

• Premium paid for self, spouse and children along with parents below 60 years of age: Rs 50,000

• Premium paid for self, spouse and children along with parents above 60 years of age: Rs 75,000

• Premium paid for self and spouse (any of the members above 60 years) and senior citizen parents (60 years and above): Rs 1,00,000

You can claim a deduction for preventive health check-ups and medical expenses. For the senior citizen parents, without any health insurance coverage, a deduction up to Rs 50,000 can be claimed on the medical expenses. Apart from these, expenses on preventive healthcare up to a maximum of Rs 5,000 can be claimed for self, spouse and children. However, this should be within the overall limit of Rs 25,000 or Rs 50,000 as applicable.

1. Any taxpayer who pays a premium for a medical insurance policy for self, parents, children and spouse can claim a deduction under Section 80D.
2. A deduction can be claimed on medical insurance premiums, including top-up plans and critical illness plans.
3. You can claim a deduction only if you are an individual taxpayer or part of a Hindu Undivided Family (HUF).

With the rising healthcare costs, opting for health insurance has become a necessity for many. If you have already paid for health insurance premiums, choose the appropriate tax regime and factor in your health insurance tax benefits while filing ITR for AY 2025-26.