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Section 80D - Income Tax Deduction

The tax system in India can be a vast topic. As a layman, you may not want to dig into the details of each rule, but understanding a few of these can help you get huge tax benefits. Section 80D deductions of the Income Tax Act of 1961 is one such popular section that can help you save on taxes.Read More

To encourage health insurance plans in India, the government instituted tax benefits on the premium. This dual benefit of health insurance plans is quite interesting. On the one hand, you can stay relaxed about medical expenses as your insurer is there to cover the cost. On the other hand, you can avail tax benefits for the health insurance premiums paid. Let's understand how Section 80D of the Income Tax Act of 1961 offers tax advantages.Read Less

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Written ByShruti gujarathi
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Shruti gujarathi has 5 years of experience in the BFSI sector, and as Manager- Digital Marketing at Bajaj Allianz Life Insurance, manages digital and content marketing. She has had hands-on experience in content strategy, performance marketing and Strategic Alliances over a career spanning 10 years.
Reviewed ByRituraj Singh
AboutRituraj Singh
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Rituraj Singh,With over 6.5 years of experience in the insurance industry, Rituraj Singh, Manager- Product & Brand Marketing at Bajaj Allianz Life Insurance overlooks new product launches, compliance, and brand projects, leveraging artificial intelligence and technology to enhance outcomes.
Written on: 25th Feb 2025
Modified on: 26th Feb 2025
Reading Time: 15 Mins
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Understanding Section 80D & eligibility

Section 80D offers tax deductions. Individuals and HUFs (Hindu Undivided Families) can claim 80D tax deductions for the health insurance premium paid. The benefit is available to taxpayers under the old tax regime.2

Section 80D deductions are available for individuals and Hindu Undivided Families.1

The deductions under Section 80D are over and above the ₹1.5 lakh deduction limit under Section 80C of the Income Tax Act of 19612. As a taxpayer, you can benefit from Section 80D at the time of filing returns.1
 

Deductions under Section 80D
 

Section 80D offers several deductions to individuals and HUFs. Here are the details of the deductions that you can claim:

  1. Premiums of health insurance

    Payments of health insurance premiums made by self, spouse, children, or parents can be claimed2. Adults and older adults are eligible for the following claims:

  2. ₹25,000 + ₹25,000 claim

    Adults can claim a deduction of up to ₹25,000 for health insurance premium payments for spouse, self, children, and an additional amount of ₹25,000 for health insurance premium paid for dependent parents.2

  3. ₹25,000 + ₹50,000 claim

    You can claim a deduction of up to ₹50,000 if paying health insurance premiums for parents above 60 years of age over and above the ₹25,000 for yourself, spouse and children.2

    • Central government employees and pensioners
    • Family members of central government employees and pensioners
    • Sitting and former members of Parliament
    • Former governors and lieutenant governors
    • Freedom fighters
    • Former vice presidents
    • Sitting and former judges of the Supreme Court and High Courts
    • Employees and pensioners of certain autonomous organizations in Delhi
    • Journalists accredited with PIB in Delhi
    • Delhi Police Personnel in Delhi
    • Employees of the Railway Board
  4. ₹1,00,000 claim

    If you as well as your parents are above 60 years of age you can claim a deduction of up to ₹1,00,000 if paying health insurance premiums for both. 2

  5. Preventive health check-ups

    Expenses for preventive health check-ups can be claimed for up to ₹5,000. This limit is covered under the limit of ₹25,000 or ₹50,000 deductions.2

  6. Medical expenses

    Resident senior citizens who do not have any active health insurance plans can avail of Section 80D deductions for medical expenses incurred. A maximum of ₹50,000 tax deduction can be claimed.2

  7. CGHS/notified scheme payments

    Payments made by individuals towards the Central Government Health Scheme (CGHS) or similar notified schemes are also eligible for tax deduction. Up to ₹25,000 tax deductions can be claimed. However, the claim is not eligible for payments made on behalf of parents.2

    The members eligible for the CGHS Scheme are3:

Mode of payment permitted.

To claim Section 80D deductions, you need to be mindful of the payment mode. Cash payment is explicitly forbidden for certain claims. Here are the payment modes you need to follow:

Preventive health check-ups

Cash payment is permitted for preventive health check-ups. You may use other payment modes as well.2

Medical expenses/health insurance premiums

Cash payment is not accepted for tax deductions raised for medical expenses and health insurance premiums.2

Section 80D deductions: Factors to consider

Planning a financial year in advance can help you streamline essential expenses and also make the most of tax benefits. If you are aiming for tax deductions under Section 80D, here are a few things you must know:

Not for relatives

The health insurance premium payments for aunt, uncle, brother, sister, grandparents, or any other relatives are not eligible for Section 80D tax deductions.2

Not for financially independent children

Individuals and HUFs cannot claim 80D benefit for paying health insurance premium for financially independent children. They need to file it for themselves.2

Not for group health insurance

The group health insurance premiums paid by the company are not allowed for Section 80D tax deductions.3

Part payments

In case you and your parent make part payments towards the premium, both of you are eligible for Section 80D tax deductions up to extent of payment.2

Cess/service tax not covered

Cess and service tax on health insurance premiums are not allowed for tax deductions. Only the premium amount paid is accepted.2

Conclusion

The rising cost of medical treatments is evident to everyone. Be it the expensive lifestyle disease medicines, intervention therapies, or major surgery, medical bills can dig a hole in your savings. To avoid draining a major chunk of your income towards health care, purchasing a health insurance plan is crucial. Along with peace of mind, it also offers tax benefits under Section 80D of the Income Tax Act of 1961!

FAQs

1. Are preventive health check-ups covered under deductions of Section 80D?

Yes, in the 2013-14 financial year, preventive health check-ups were introduced under Section 80D deductions. You can claim preventive health check-up deductions of up to ₹5,000. The deductions are within the limit of ₹25,000 deductions or ₹50,000, as the case may be.2

2. What deductions are offered under Section 80D?

Section 80D of the Income Tax Act of 1961 offers tax deductions for preventive health check-ups, health insurance premium payments, and medical expenses for senior citizens.2

3. Can I claim Section 80D deductions for the multi-year health insurance premium paid?

Yes, multi-year health insurance premium payments are eligible for Section 80D tax deductions. However, the deductions are permitted in proportion and subject to the maximum limit of ₹25,000 and ₹50,000 (senior citizens). 2

For instance, person A purchases health insurance for 3 years at ₹60,000. The person is eligible for a tax deduction of ₹20,000 for 3 years each.

4. Can I claim Section 80D deductions for senior citizen medical expenses?

Yes. Resident senior citizens who do not have any health insurance plan are still eligible to claim up to ₹50,000 tax deductions under Section 80D in income tax.2

5. Who can apply for Section 80D tax deductions?

Individuals and HUFs (Hindu Undivided Families) are eligible to claim tax deductions under Section 80D in Income Tax.2

6. Are Section 80D deductions over and above Section 80C limit?

Yes, tax deductions under Section 80D of the Income Tax of 1961 are over and above the ₹1.5 lakh limit of Section 80C.2

Sources:

 

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The views stated in this article are not to be construed as investment advice and readers are suggested to seek independent financial advice before making any investment decisions. Bajaj Allianz Life Insurance Company Ltd., Regd. office Address: Bajaj Allianz House, Airport Road, Yerawada, Pune - 411006, Reg. No.: 116, CIN: U66010PN2001PLC015959, Call us on toll free No.: 1800 209 7272, Mail us: customercare@bajajallianz.co.in

Tax benefits as per prevailing Income tax laws shall apply. Please check with your tax consultant for eligibility

BJAZ-WEB-ECNF-13152/25

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*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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Terms & Conditions

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

 

Please refer to BALIC Privacy Policy

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%%Above illustration is for Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V03) considering Male aged 25 years | Non-Smoker | Policy Term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 1,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 6,238. 2nd Year onwards premium is Rs. 6,659. Total Premium Paid is Rs. 1,99,349 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly installments (Lumpsum Payout Percentage : 45, Income Payout Percentage : 55) | Premium shown above is exclusive of Goods & Service Tax/any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only. This is inclusive of all the discounts mentioned above.

##Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

@Term Insurance plan bought online directly from Bajaj Allianz Life Insurance has no commissions involved.

^^The Return of Premium amount is total of all the premiums received, exclusive of extra premium, rider premium and GST & /any other applicable tax levied, subject to changes in tax laws
Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V04)

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116


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^Subject to Section 10 (10D) conditions i.e. aggregate annual premium for ULIP policies issued on or after 1st February 2021 does not exceed Rs. 2.5 Lakhs.

1Minimum premium mentioned is applicable for Bajaj Allianz Life Goal Assure IV - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L204V01) and is subject to policy terms and conditions.

#Source: https://economictimes.indiatimes.com/investments-marts/eight-crucial-numbers-to-ensure-financial-success/10-times-the-annual-income-is-your-life-insurance/slideshow/16699748.cms . Subject to availability in Bajaj Allianz Life ULIP Plans. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com ) carefully before concluding a sale.

*Benchmark: Nifty 500 Multicap Momentum Quality 50 Index past 5 CAGR Returns, as on 31st December 2024. Past returns of a fund are not necessarily indicative of the future performance of the fund. | Please consult the financial advisor before investing.

The Unit Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth year.

ULIPs are different from the traditional insurance products and are subject to the risk factors. The premium paid in ULIPs are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Bajaj Allianz Life Insurance Company Limited is only the name of the Life Insurance Company and Bajaj Allianz Life Future Wealth Gain IV - A Unit- linked Non- Participating Individual Life Savings Insurance Plan (UIN:116L202V01), Bajaj Allianz Life Goal Assure IV - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L204V01), Bajaj Allianz Life LongLife Goal III is A Unit-linked Non-Participating Whole Life Insurance Plan (UIN:116L203V01), Bajaj Allianz Life Invest Protect Goal III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L205V01), Bajaj Allianz Life Magnum Fortune Plus III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L207V01), Bajaj Allianz Life Goal Based Saving III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN:116L206V01) and Bajaj Allianz Life Smart Wealth Goal V - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L201V01) are only the name of the unit linked insurance contracts and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com ) carefully before concluding a sale.

Nifty 500 Multicap Momentum Quality 50 Index Fund is available Bajaj Allianz Life Future Wealth Gain IV - A Unit- linked Non- Participating Individual Life Savings Insurance Plan (UIN:116L202V01), Bajaj Allianz Life Goal Assure IV - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L204V01), Bajaj Allianz Life LongLife Goal III is A Unit-linked Non-Participating Whole Life Insurance Plan (UIN:116L203V01), Bajaj Allianz Life Invest Protect Goal III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L205V01), Bajaj Allianz Life Magnum Fortune Plus III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L207V01), Bajaj Allianz Life Goal Based Saving III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN:116L206V01) and Bajaj Allianz Life Smart Wealth Goal V - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L201V01)

In addition to the already existing funds, Nifty 500 Multicap Momentum Quality 50 Index Fund is now available with the above mentioned products. Customer has an option to choose from other available funds apart from Nifty 500 Multicap Momentum Quality 50 Index Fund.

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I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any Call made, including via Voice over Internet Protocol & WhatsApp, SMS or WhatsApp messages, in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

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