Section 80D of ITA, 1961 : Section 80D: Deduction In Respect Of Health Insurance Premia

The Income Tax Act 1961

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Explanation using Example

Example Application of Section 80D of The Income-tax Act, 1961

Let's consider a hypothetical scenario where Mr. Sharma, a 45-year-old salaried individual, has taken a health insurance policy for himself, his spouse, and his dependent children. He has also taken a separate health insurance policy for his elderly parents, who are 67 and 65 years old, respectively.

In the financial year, Mr. Sharma pays a premium of ₹20,000 for his family's health insurance and ₹30,000 for his parents' health insurance. Additionally, he spends ₹3,000 on preventive health check-ups for his family.

Under Section 80D, Mr. Sharma is eligible for the following deductions:

  • ₹20,000 for the insurance premium paid for his family.
  • ₹3,000 for the preventive health check-ups of his family (within the ₹5,000 limit for such check-ups).
  • ₹30,000 for the insurance premium paid for his senior citizen parents, which is eligible for a higher deduction limit of ₹50,000 for each senior citizen.

Thus, Mr. Sharma can claim a total deduction of ₹53,000 (₹20,000 + ₹3,000 + ₹30,000) under Section 80D from his taxable income for that financial year.