As the ITR filing 2025 deadline approaches, many taxpayers are scrambling to find legitimate ways to reduce their tax liability. One often-overlooked method is claiming deductions on health insurance premiums under Section 80D of the Income Tax Act. What’s that, you ask? We’ll explain here.
Under Section 80D, you can claim tax deductions for the premiums you pay on health insurance policies that cover you, your spouse, your dependent children, and your parents. This includes different types of policies approved by the Insurance Regulatory and Development Authority of India. For example, it includes mediclaim, family floater plans, critical illness cover, or top-up insurance plans.
Here’s where it gets interesting: you can claim up to ₹25,000 annually for yourself and your immediate family. If you also pay for your parents’ health insurance, you can claim an additional ₹25,000, or ₹50,000 if your parents are senior citizens (60 years or older).
So, if both you and your parents are senior citizens with health insurance, you can claim a whopping ₹1,00,000 in deductions!
Did you know preventive health check-ups also qualify under Section 80D? You can claim up to ₹5,000 annually for such check-ups, even if paid in cash. But remember, this ₹5,000 is part of your overall deduction limit, not an additional amount.
To qualify for the deduction, ensure you pay your premiums via non-cash modes like net banking, UPI, credit/debit cards, or cheque. Cash payments don’t qualify, except for preventive check-ups.
If you’re salaried, submit the premium receipts and policy documents to your employer to get the benefit reflected in Form 16. Otherwise, keep them handy to claim your deduction while filing your Income Tax Return (ITR).
If you hold separate policies for yourself and your parents, you can claim deductions for both, subject to the limits.
Read more: ITR Filing FY25: Should Students and Unemployed Individuals File ITR?
With health insurance premiums potentially cutting your tax bill by up to ₹1 lakh, it’s a tax-saving hack you shouldn’t miss this year. Make sure all your financial documents are in order to maximise your benefits and ensure a hassle-free tax filing experience.
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: Aug 11, 2025, 3:34 PM IST
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