Section 80D: Understanding Deductions Under Section 80D

“Health is wealth” – we’ve all heard this, but in today’s world, healthcare costs are rising faster than ever. Medical emergencies can occur anytime and anywhere. Health insurance is one of the best options to mitigate the risk associated with a medical emergency. For women, who often balance multiple roles as professionals, homemakers, mothers, daughters, or caregivers planning for health expenses is not just wise, it’s essential.

That’s where Section 80D of the Income Tax Act comes into play. It doesn’t just reduce your tax outgo, but it also ensures that you and your family are financially secure in case of medical emergencies.

This blog will give you a better understanding of the 80D deduction. 

What is Section 80D?

Section 80D of the Income Tax allows you to claim tax deductions on premiums paid for health insurance policies. It also includes expenses on preventive health check-ups and medical cover for yourself and your dependent family members. So essentially, when you pay for your family’s health insurance, the government rewards you with tax-saving benefits.

Section 80D allows you to claim tax deductions for the premiums paid on health insurance policies and certain medical expenses.
It covers:

• Self
• Spouse
• Dependent children
• Parents

How Much Can You Save Under Section 80D?

• Self, Spouse & Children – Up to ₹25,000
• Parents (below 60 years) – Additional ₹25,000
• Parents (above 60 years) – Additional ₹50,000
• Preventive Health Check-up – Included within the above limit (up to ₹5,000)

Tax Saving Hack: Maximum deduction possible of  ₹1,00,000 (if you, your spouse, and parents are all senior citizens).

Preventive Health Check-Ups: Don’t Miss This

You can also claim up to ₹5,000 for preventive health check-ups within the overall limit.
Think of it this way: those annual health tests you do (or should do!) are not just good for your health but also for your tax savings.

Multi-year Health Insurance Premium Paid in Lump-sum

• Sometimes, women buy multi-year health insurance plans because of the discounts offered. In this case, deduction is allowed proportionately under section 80D. 
• For e.g. Sonam bought a 3-year health insurance policy and paid Rs 30,000 upfront. In this case, Sonam can claim Rs 10,000 as a deduction under Section 80D in each of the three years. 

Why is Section 80D Especially Important for Women?

1. Caregivers First, Themselves Last
   Women often prioritize their family’s health over their own health. Section 80D allows not only to invest in their family’s health coverage but also in their own health coverage.
   
2. Financial Independence & Smart Planning
   As a homemaker or working professional, taking care of family expenditure is a major responsibility. Knowing Section 80D facilitates tax reduction while ensuring your healthcare requirements are well taken care of.
   
3. Rising Healthcare Costs for Women
   Healthcare Expenditure on Females, like maternity expenses, PCOS, thyroid, osteoporosis, and heart health, needs long-term care. Having insurance (and availing the tax deduction) ensures you don’t dip into savings during emergencies.
   
4. Taking Charge of the  Family’s Future
   Many women act as the “Chief Financial Officers” of their households. Knowing how 80D works allows you to make informed decisions for your family’s well-being.
   

Example :
Reha, a 32-year-old working woman, pays:

• ₹22,000 for her family’s health insurance, which covers self, husband, and kids
  
• ₹35,000 for her parents (aged 63 & 65 – Senior Citizen)
  

Total deduction she can claim under 80D = ₹22,000 + ₹35,000 = ₹57,000

This means Reha not only secures her family’s health but also reduces her taxable income by ₹57,000 while claiming the deduction u/s 80D.

Section 80D Deduction Under Old vs New Regime :

Particulars	Old Tax Regime	New Tax Regime
Deduction for health insurance premiums	Allowed	Not Allowed
Deduction for preventive health check-ups	Allowed	Not Allowed
Deduction for medical expenses of senior citizens (no insurance)	Allowed	Not Allowed
Maximum deduction possible	Up to ₹1,00,000	Nil

Key Takeaways for Women:

• Buy health insurance smartly, not just for cover but also for tax savings.
  
• Keep all premium and health check-up receipts safe for easy Income Tax Return Filing.
  
• Senior citizens can claim up to ₹50,000 deduction on medical expenses (If they have proper Medical bills and proofs)  for the deduction without health insurance.

Final Thought 

As women, we often handle multiple responsibilities, but one thing we cannot afford to compromise on is our health and financial security. Section 80D is not just a tax-saving tool, it’s a reminder that caring for yourself and your loved ones is a financial priority too.

So next time you think about tax planning, remember saving money is good, but saving health while saving tax is even better.

Secure your health with the right cover and connect with Lxme’s Money Buddy team to find the policy that suits you best.

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Further read:

• Role of Education in Women Empowerment
• Lxme’s Child Education Plan: An Expert curated portfolio
• Empower Your Child’s Future with Lxme’s Child Education Plan in India