Tax Benefits & Deductions: A Health Premium Guide
Which Health Insurance Premiums Qualify?
- Individual health insurance
- Family floater policies
- Senior citizen health plans
- Policies with critical illness riders
- Mediclaim policies
Key Tax Benefits Under Section 80D (India)
| Category | Maximum Deduction Limit (₹) | Notes |
|---|---|---|
| Self, spouse & dependent children | Up to ₹25,000 | Deduction for premiums paid |
| Parents (below 60 years) | Up to ₹25,000 | Additional deduction |
| Parents (above 60 years) | Up to ₹50,000 | Higher limit for senior citizens |
| Preventive health check-up | Up to ₹5,000 (within overall limit) | Includes tests like blood sugar, cholesterol |
Important Points
- Deduction applies to premiums paid in the financial year.
- Payments must be made by cheque, demand draft, or digital transfer for claim.
- Medical expenditure (other than insurance premium) for senior citizens can be claimed under 80DDB.
- No tax benefit on premiums for policies taken on someone else unless you are the premium payer.
How to Maximize Tax Benefits
- Buy health insurance for your entire family to maximize limits.
- Include senior parents under your plan if possible.
- Keep premium payment receipts safe for filing returns.
- Consider renewing policies before March 31 to claim benefits in the same financial year.
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