Section 80D provides a deduction for contribution towards the health insurance premium to the extent of Rs 25,000 paid for self and family. If the policyholder is a senior citizen, the benefit can increase to Rs 30,000. Mostly people take only this benefit into account and consider the maximum limit here to be the highest amount that can be utilised for tax benefit. However, an additional deduction is possible and can be utilised.

Dependent parents
The health insurance premium cost rises with the age and that’s the reason why many find the maximum investment limit available for deduction to be very less. The Income Tax Act allows one to apply for benefits provided to senior citizens at the age of 60 years. And by this time, the premium cost goes up manifold.

There are many instances where elderly parents and their children both are paying for the health insurance policy. This could be used for the benefit of the family by asking for a higher deduction.

There is an extra benefit available for the individual taxpayers if they pay health insurance premiums for their parents. Here, an extra benefit of Rs 25,000 is available, which increases to Rs  30,000 if the parents are senior citizens. This amount is over and above the other limit for individuals, so that there is an extra benefit available for the person. This can also be structured so that a higher deduction could be claimed.

For example, an individual pays a premium of Rs 25,000 for his family and his parents (senior citizens) pay a total premium of Rs 54,000 a year. Under normal circumstances, the benefit available for the individual will be Rs 25,000  and another Rs 30,000 to the parents, as they are above 60 years of age. But, by paying Rs 24,000 out of the total premium of the parents by the individual, the individual can get a total benefit of Rs 49,000 (Rs 25,000 + Rs 24,000). The parents, on the other hand, can claim a deduction of Rs 30,000. So, the total benefit available to the whole family is worth Rs 79,000.

Deduction for Super Senior Citizens

Under section 80D, for medical expenses incurred to treat uninsured super senior citizens (more than 80 years old), deduction of Rs. 30,000 is permitted. Super Senior Citizens are those who are aged eighty year or more during the year under consideration.

Deduction on Preventive Health Check-Ups

With growing awareness about health and wellness, many people choose to undergo preventive health check-ups. The charges paid for such medical tests (up to Rs. 5000) can be claimed while filing returns.  Please note that expense on such checkup are part of overall limit of Rs. 25,000/- or 30,000/- as applicable and cannot be claimed by HUF.  This Rs. 5000 is the total deduction allowed to a taxpayer and not for each family member of the taxpayer.

(Republished with Amendments)

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  • CA Saurav Srivastava

    hi i just a little guidance, means u/s 80 D as an individual i can get the benfit upto (25000+30000), if parents are senior citizen and dependant
    and meanwhile if parents of such individual have also their policy than parents are eligible for 30000 extra deduction.

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