What is Section 80D?
Section 80D is a provision under the Indian tax code that lets taxpayers deduct a part of their taxable income by adjusting it against premiums paid towards health insurance and expenses incurred towards preventive health checkups. The tax code also allows you to make these deductions even if the payments are made to cover your spouse, dependent children or parents. The total deductions you can claim are capped at different levels as outlined below.
Section 80D Deduction Calculator
Age
Parents Age
Annual Premium Paid for Self and Family
Annual Premium Paid for Parents
Annual Health Checkup for Self and Family
Annual Health Checkup for Parents
Allowed Tax Deductions
₹12,500
Max. Tax Savings
₹2,500
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Total Deductions you can claim under Section 80D
Let’s start with the most simple use case - An individual self, or somebody who’s married with dependent children.
In this case, the direct taxpayer could include health insurance premiums and preventive health check-up costs incurred towards protecting themselves, their spouse and dependent children and deduct these expenses from their taxable income up to a limit of ₹25,000. The only exception here is that the limit for health checkups is also separately capped at ₹5,000.
Particulars | Self / Self & Spouse / Self, Spouse & Kids |
---|---|
Maximum Deductions (Health Insurance + Preventive Health Checkups up to a limit of ₹5,000) | ₹25,000 |
But bear in mind, deductions here only mean that you can reduce this sum from your total taxable income. However, the total savings you can generate from this will depend on the tax rate applicable to you and the regime you pick. In any case, here’s a table illustrating the maximum sum you can save if you are claiming deductions on behalf of your self/spouse or dependent children under the old tax regime
Income | Maximum Deductions on behalf of Self and family | Tax rate under old regime | Total Maximum Savings |
---|---|---|---|
Less than ₹2.5 Lakh | ₹25,000 | 0% | ₹0 |