Section 80D: Deduction for Medical Insurance Premium

Section 80D of the Income Tax Act allows deductions for medical insurance premiums, medical expenses, and preventive health check-ups. Deductions are available for individuals and HUFs covering expenses for self, spouse, dependent children, and parents.

Deduction limits are up to INR 25,000 for individuals below 60 years, with an additional INR 5,000 for preventive health check-ups. Senior citizens (aged 60 years or above) can claim up to INR 50,000, including INR 5,000 for preventive health check-ups.

An extra INR 25,000 deduction is available for premiums paid on behalf of senior citizen parents. Taxpayers opting for the new tax regime since FY 2020-21 cannot claim deductions under Section 80D.

Proper documentation like premium receipts and medical bills is essential to claim these deductions while filing income tax returns. Deductions under Section 80D aim to incentivize investment in health insurance and preventive healthcare measures, reducing taxable income significantly.