Income tax return filing 2025 comes with various opportunities for taxpayers to reduce their tax liability through eligible deductions. One such key avenue is the health insurance premium.
As per section 80D of the Income Tax Act, individuals can claim significant deductions on premiums paid for medical insurance. These deductions not only provide financial relief during tax filing but also offer a safety net for health-related emergencies.
Section 80D of the Income Tax Act allows individuals to claim deductions on premiums paid for health insurance. This benefit can be availed for insurance policies covering self, spouse, dependent children, and parents.
For an individual, the deduction is up to ₹25,000 for the premiums paid. If the policy includes the individual's family and parents, the deduction amount can go up to ₹50,000.
The total maximum deduction under this section is ₹1,00,000 if the policies include senior citizens.
Taxpayers can benefit from an increased deduction limit if they are paying premiums for senior citizen parents. Under section 80D, the deduction allowed for senior citizens is up to ₹50,000.
This applies whether the senior citizens are the taxpayers themselves or their parents. Thus, if both the taxpayer and the parent are senior citizens, a combined deduction of ₹1,00,000 can be claimed under this section.
Apart from health insurance premiums, section 80D also allows for a deduction on expenses incurred towards preventive health check-ups.
For individuals aged 60 years or below, the maximum deduction available for preventive check-ups is ₹5,000 per year. For those above 60 years, this limit extends up to ₹7,000 annually. These amounts are included within the overall section 80D limit and not in addition to it.
The cumulative deduction allowed under section 80D can go up to ₹1,00,000 in the financial year 2025. This includes premiums paid for health insurance policies covering self, family members, and senior citizen parents. It also includes amounts spent on preventive health check-ups.
In cases where individuals opt for a health rider along with a life insurance plan, the premium amount paid towards such a rider is also eligible for deduction under this section.
The Central Board of Direct Taxes (CBDT) has extended the due date for income tax return filing for the financial year 2025. Taxpayers now have time until September 15, 2025 to file their returns, offering additional time to organise their documents and maximise applicable deductions.
Read More: ITR Filing 2025: Deadline Now Extended Till September 15.
Health insurance not only secures you and your family during medical emergencies but also provides valuable income tax deductions under section 80D. With the filing deadline for income tax returns now extended to 15 September 2025, taxpayers have a clear opportunity to make the most of the tax benefits associated with their medical insurance plans.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Jun 3, 2025, 4:08 PM IST
Team Angel One
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