What is Section 80D of Income Tax Act?


Section 80D allows any individual or HUF to deduct medical insurance premiums paid in a given year from their total income. This deduction is also available for top-up health insurance and critical illness plans.

The global health crisis has taken a toll on people’s financial health, particularly those without medical insurance coverage. Aside from a lack of information about insurance plans, exorbitant rates are another important reason why consumers avoid purchasing them.

The deduction benefit is provided not just for a health insurance plan for oneself, but also for premiums paid for a policy that covers a spouse, dependent children, or parents. The nicest thing is that it is in addition to the deductions allowed under Section 80C.

Who is eligible for the Section 80D deduction?

Individual or HUF taxpayers are the only ones who can deduct medical insurance premiums for themselves and their families, as well as medical costs incurred for elderly citizens. 

Individual or HUF taxpayers can claim insurance premium payments paid for:

  • Self 
  • Spouse 
  • Dependant children 
  • Parents

Payments that are deductible under Section 80D

Section 80D allows an individual or HUF to claim a deduction for the following payments:

To claim tax benefits under this provision, you can pay for your medical insurance premiums in any manner other than cash. The benefits will be accessible for the amount paid for the treatment of elderly citizens (aged 60 and above) as well as medical expenses for a preventive health check-up.

Section 80D of the ITA permits you to claim a tax exemption of ₹5,000 for yourself and your family members, and you can even pay the amount in cash.

Assume you are required to pay ₹17,000 for your medical insurance premium in a given fiscal year. You’ve also chosen a preventive health check-up for yourself, your spouse, and any dependent children. In that instance, you will be eligible to claim an additional tax deduction of up to ₹5,000 under Section 80D, depending on your expenditure.

Section 80d Of The Income Tax Act

What Are the Excluded Factors Under Section 80D?

  • He or she has paid his or her health insurance premium in cash. Similarly, any payment of medical expenditures made in cash is excluded. 
  • He or she has paid for siblings, grandparents, working children, or any other relative.
  • He or she has group health insurance provided by the firm on behalf of the employee. 


Section 80 of the Income Tax Act provides various deductions and exemptions to taxpayers. It includes provisions for deductions on specified investments, expenses, and contributions. Taxpayers can claim deductions for expenses such as medical treatment, education loans, house rent, and donations to charitable institutions. Additionally, there are deductions available for contributions made towards pension schemes, life insurance premiums, and savings in specified financial instruments. These deductions help individuals and businesses reduce their taxable income, ultimately resulting in lower tax liabilities. However, the specific details and conditions for claiming deductions under Section 80 may vary, and it is advisable to consult a tax professional for accurate and up-to-date information.