Kotak Life

Buy a Life Insurance Plan in a few clicks


Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D
  • 28th Nov 2019 |
  • 109,644

The Income Tax Act, 1961, allows income tax deductions for individuals, which reduces the amount of tax payable. It is important to know about the relevant sections to make the most of these deductions.

What is Section 80D?

Section 80D of the Income Tax Act provides 80D deductions on the medical insurance premiums paid for you and your family members. You can claim a tax deduction for the health insurance premium paid for yourself, your parents, children, and your spouse.

Moreover, this section also allows Hindu Undivided Families (HUFs) to claim 80D deductions. If you wish to know how you will benefit from this section, read on to know more about Section 80D deductions and the tax deductions offered.

What investment comes under Section 80D?

  • The premiums you pay on a health insurance policy and the expense spent on preventive health checkups can be claimed as deductions under Section 80D of the Indian Income Tax Act.
  • Individuals can also claim deductions against the health insurance premium paid for their parents’ policies. The extent of deductions will depend upon the age of the primary policyholder.
  • Health-based riders such as critical illness cover available with life insurance plans also come under the purview of Section 80D of Income Tax.

Deductions as per Section 80D: Medical Expenditure Deduction

80D deductions are only connected with medical insurance policies. These deductions are mentioned as follows:

  • Individual and family
  • If you pay insurance premiums for yourself, your spouse, and your kids, you can claim a maximum tax deduction of ₹25,000 per annum. In the case of senior citizens, the limit is ₹50,000 a year.
  • If you pay health insurance premiums for your parents, you can claim a maximum tax benefit of ₹25,000 per year if your parents are less than the age of 60. However, if your parents are senior citizens, you can claim a tax benefit of up to ₹50,000 per year.

Preventive Health Check-up under Section 80D

In 2013-14, the government implemented a preventative health checkup deduction to encourage citizens to be more health-conscious. The goal of preventative health checkups is to detect any sickness and decrease risk factors early on by seeing a doctor on a regular basis. Payments for preventative health check-ups are deducted at a rate of ₹5,000 under Section 80D. This deduction is limited to ₹25,000/₹ 50,000, depending on the situation. Individuals can claim this deduction for themselves, their spouses, their dependent children, or their parents. Also, cash can be used to pay for preventive health screenings.

Additional 80D deduction

You are eligible to claim an additional 80D income tax deduction of ₹5,000 for the expenses associated with health check-ups. This includes all expenses for a check-up of the entire family.

What are the exclusions under Section 80D?

  • If you are making payments on your grandparents’, siblings’, or working children’s behalf, you cannot avail the tax benefits. This is applicable to any other relative not explicitly covered under your policy.
  • If you are making the health insurance premium payments through cash, you will not be eligible for health insurance tax benefits. Preventive health benefits can be availed even with cash payments.
  • If the company makes a group health insurance premium payment on the employee’s behalf (non-contributory), it won’t be eligible for tax exemption. However, if the taxpayers choose to make extra premium payments to improve the group cover (contributory), they can claim tax benefits on the additional amount they paid.
  • You will not be liable to receive any tax benefits on GST and Cess charges levied on premium payments.


Rohan is 45 years old, and his father is 75 years old. Rohan has taken out medical insurance for himself and his father, paying ₹30,000 and ₹35,000 in premiums, respectively. What is the maximum deduction he can claim under Section 80D?

Rohan is eligible for reimbursement of ₹25,000 for the premium he paid on his coverage. Rohan can claim ₹50,000 from his father’s senior citizen insurance policy. The deductions, in this case, are ₹25,000 and ₹35,000. As a result, he can claim a total deduction of ₹60,000 for the year.

Who is eligible for tax deductions under Section 80D?

You are eligible to claim a tax deduction under Section 80D for yourself, your spouse, your kids, and your parents. In addition, as mentioned above, even HUFs are eligible to claim a deduction in this section. Any member of a HUF can claim a tax deduction on the amount paid towards the health insurance premium. This deduction is subject to the upper limit according to Section 80D of the Income Tax Act.

Eligibility for tax deduction under section 80D of Income Tax Act,1961:

  • Individuals and HUF (Hindu Undivided Family) can file for a tax claim deduction from taxable income under Section 80D.
  • You will be eligible for a tax deduction under Section 80D if you make premium payments towards a health insurance policy bought for you, your spouse, children or parents.
  • If you are making the payments for the treatment or medical check-ups of your parents above the age of 80, you will be eligible for tax exemption. But, for these cases, you will need to make sure that your parents do not have a separate health insurance policy of their own.
  • All deductions are subject to the prevailing guidelines under Section 80D of the Income Tax Act.

Section 80D Limit

  • For self and family: ₹25,000 tax deduction + ₹5,000 health check-up, which sums up to ₹30,000.
  • For self, family, and parents: ₹50,000 tax deduction + ₹5,000 health check-up exemption, which sums up to ₹55,000
  • For self, family, and senior citizen parents: ₹75,000 tax deduction + ₹5,000 health check-up exemption, which takes the total tax deduction to ₹80,000
  • For self (senior citizen), family, and senior citizen parents: ₹1 lakh tax deduction + ₹5,000 health check-up exemption, which increases the deduction amount to ₹1.05 lakh

Deduction on Section 80D in Income Tax Act, 1961

A deduction in respect of medical insurance premium is allowed up to ₹25,000 per budgetary year for medical insurance premium instalments. The policy can be either for you, your spouse or your children. If you or your spouse is a senior citizen (60 years of age or above), then the deduction limit will go up to ₹50,000. If you make premium payments in cash, you will not be liable for tax exemptions.


Premium paid

Preventive health checkup

Maximum deduction under 80D

Individual, children and family


Individual, children and family


Individual and parents(below 60)






Individual and parents(below 60) and parents above(60)






Individual and parents(below 60) and parents above(60)






HUF members






Non-residential member






Deductions on Preventive Health Care Checkups

You will be eligible for a tax reduction if you are getting health checkups done annually. The limit that you are eligible for under Section 80D will include the costs for checkups. The limit on check-up expenses is up to ₹5000 for individuals below 60 years of age and ₹7000 for senior citizens for each budgetary year.

Can HUFs also avail tax exemptions?

Akin to individual taxpayers, Hindu United Families (HUFs) are also allowed to claim tax exemptions for all or any members, under section 80D of the Income Tax Act. A HUF can claim a deduction under Section 80D for an insurance policy taken for a member of the family. The deduction amount will be ₹25,000 if the insured member is younger than 60 years of age. It will be ₹50,000 if the insured member is 60 years of age or above.

Deduction on Health Insurance Premium Payments for Parents

The premiums paid on a medical insurance policy for parents/guardians are qualified to deduce up to ₹25,000 in every financial year. If your mother/father/guardian is a senior citizen, the maximum limit goes up to ₹50,000 a year. The limit will additionally include ₹7000, for the expenses incurred through annual health checkups. For individuals who are super-senior citizens (80 years or above) and do not have an insurance policy can avail a tax deduction of up to ₹50,000 every financial year for annual medical checkups and hospital treatments. But, the tax exemption is not for their expenses.

No Tax Benefit on Cash Payment

A prerequisite for getting the tax benefits through these insurance policies is that you must make premium payments through a cheque, draft, credit or debit cards, online banking, etc. A tax benefit is not accessible for the premium payments made through cash. The only exception for tax exemption on cash payments is that preventive health checkups can be paid through cash.

Section 80D Deductions for FY 2020-21 & AY 2021-22

The Annual Budget for 2020-21 laid down the following limits for Section 80D deductions:

Covered Individuals

Premium paid for self, family, and children

Premium Paid for parents

80D Exemptions

Individual and parents > 60 years




Individual and family > 60 years but parents < 60 years




Individual, family, and parents < 60 years




HUF members and NR individuals




The reason behind deduction according to Section 80D

Mediclaim deductions under Section 80D happens so that the medical insurance policy remains active. The insurance policy can be in either your name or your spouse’s name. You must note that apart from saving taxes, a health insurance plan plays a pivotal role in taking care of your medical expenses if you fall sick and need medical assistance

Difference Between Section 80D and Section 80C

  • Under Section 80D, the taxpayers will be able to get tax exemptions for the health insurance policy. You can get a tax exemption on:
  • the policy bought for yourself, your family, your parents.

    expenses incurred because of annual health checkups.

    Premium paid towards health riders in life insurance policies.

  • Section 80C of the ITA will include many different tax-saving expenses and investments. Financial investments made in a wide range of investments like savings schemes, life insurance policies, ULIPs, ELSS, Sukanya Samriddhi Yojana, Tax-savings FDs, etc. will come under Section 80C.

Union Budget 2018: Increase in tax deduction limit according to Section 80D

As per the Union Budget announced in 2018, the maximum amount of deduction in health premium was raised from ₹30,000 to ₹50,000 under Section 80D. Senior citizens can avail of this benefit. One of the core objectives of the Union Budget 2018 was to take care of the senior citizens in India. Moreover, it is also modifications related to the medical expenditure incurred by individuals aged above 60 and below 80.

This rise in the tax deduction amount is a welcome change for senior citizens and for those who pay health insurance premiums for senior citizens.

FAQs on Section 80D

1.Can you make a cash payment for the premium paid for deductions?

It is not possible to claim a deduction on the premium amount paid in cash.

2. Is it possible to claim a deduction on the premium paid for your independent children?

No, deductions can only be claimed if you pay the premium for dependent children.

3.Can you claim a deduction if your spouse and parents are not dependent on you?

Yes, you can claim deductions even when your parents and spouse are independent.

4. Can you claim a deduction on the service tax paid on the insurance premium?

You cannot claim a deduction on the service tax amount because it is paid in addition to the premium and is collected by agencies.

5.Is it possible to claim deductions for health check-ups of dependents in your family?

Yes, you can claim a health check-up deduction up to ₹5,000 inclusive of all the dependents in your family. However, this facility is not available separately for every individual family member.

Now that you have a clear idea of what is 80D in income tax, you must ensure that you avail of the tax deduction in this section if you are paying health insurance premiums for yourself, your spouse, dependent children, and your parents

6. What is the limit of deduction under Section 80D of the Income Tax Act, 1961?

The breakdown of the deduction limits are as follows:

  • Individuals (below 60 years), with spouses and dependent children will get a deduction of up to ₹25,000 every year.
  • Individuals (above 60 years), with spouses and dependent children will get a deduction of up to ₹50,000 every year.
  • Individuals buying a separate policy for their dependent parents can claim an additional ₹25,000 if both the parents are below 60 years of age.
  • In case one of the parents is a senior citizen (above 60 years of age), the individuals can claim up to ₹50,000 as tax deduction.
  • Hindu Undivided Family (HUFs) can claim up to ₹25,000 every year and an additional ₹25,000 for a separate senior citizen policy.
  • Individuals can claim ₹5000 (below 60 years) or ₹7000 (above 60 years) as Preventive Health Checkup, subject to the total deduction falling under the above-mentioned limits.

7. How much tax exemption can be availed under 80D?

The Indian Income Tax Act lays down the various deductions available against the premium paid for health coverage under Section 80D. To get a better idea about the exemptions you can avail under this section, you can refer to the following:

a. An individual or an individual with family (spouse & dependent children) can avail a deduction of ₹25,000 per annum if the primary policyholder is below 60 years of age and ₹50,000 per annum if the primary policyholder is above 60 years of age.

b. An individual can also claim tax deductions on the policy premiums paid towards the health insurance of their dependent parents. If the parents are below the age of 60, the applicable deduction is ₹25,000 per annum. However, if the parents are above 60 years of age, the maximum deduction is ₹50,000 per annum.

c. HUFs (Hindu Undivided Family) can also claim tax deductions up to ₹25,000 per annum. Also, they can claim an additional ₹25,000 for a separate policy for the dependent parents.

d. NRIs get a tax deduction of ₹25,000 for their own health insurance, along with an additional ₹25,000 for parents’ health cover.

Thus, a resident Indian can claim up to ₹1,00,000 as a tax deduction per annum (both individual and parents are senior citizens) for the premiums paid against health insurance coverage

All of these limits are inclusive of the exemption for annual health checkups: ₹5000 for individuals and families and ₹7000 for senior citizens.

8. Can I avail tax benefits for more than one health insurance policy?

Yes, you are allowed to avail tax exemptions for multiple health insurance policies. You will need to make sure that you meet all eligibility conditions and the premium payments are up to date for all the insurance policies. If the claim amount is more extensive than the sum insured under the policy on which you have made the first claim, you will have the option to claim the balance amount from the second policy. You must keep this in mind at the time of filing under multiple policies.

Kotak e-Term Plan


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

5 Things To Consider While Buying Term Insurance Plan

Why should single women purchase term life insurance?

Planning For Son or Daughter's Wedding

What is Critical Illness Policy

Advantages & Disadvantages of Term Insurance in India

Protection for your family

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Buying A Term Insurance Plan? Take These Factors into Account

While Buying Term Insurance Compare Features, Not Just Premiums

Is Life Insurance Investment Worthy Enough

How To Choose the Right Sum Assured Under a Term Plan?

How Not To Get Your Term Insurance Claim Rejected

Comparing Term Plans – What Should You Look Out For

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Is Term Life Insurance Plan an Investment or Expense?

What Should You opt for - Limited or Premium Pay?

Steps on How to Buy Term Insurance Online

Why Term Plan Should Be The First Step To Securing Your Future?

What Are Insurance Riders and How to Choose Them in a Term Plan?

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

What are incremental term insurance plans?

Which Death Type Does Your Term Plan Not Cover?

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Why Married People Should Buy Term Insurance Under MWP Act?

Understanding Term Insurance Riders

4 Methods to Calculate How Much Term Insurance You Need

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

6 Reasons That Make Term Insurance a Must Buy

What Are the Best Term Insurance Plans for Planning Retirement?

Tips to Choose the Right Term Period for Term Insurance Plan

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Insuring Against Disability With Disability Insurance Rider

Why is it important to buy term insurance plan?

Different Types of Protection Plans

Calculating Term Insurance Premium

Insuring Against Accidents with an Accidental Death Insurance Rider

Does Your Term Insurance Plan Cover Death Due to COVID-19?

Is ₹1 Crore Term Insurance Good Enough Cover?

How Much Term Insurance Do I Need

Term Insurance Plans and Policies for Smokers

How to Surrender Term Life Insurance When you have No Liabilities

Reasons You Need Term Insurance Plan as a Self-Employed Person

5 Term Insurance Benefits for Single Women

Term Insurance with Critical Illness

Why Should You Add a Rider to a Term Insurance Plan?

What is Term Insurance - A Complete Guide

Top 3 Reasons Why You Should Buy A Term Plan Now

Insuring Protection Against Death With Death Insurance Rider

Why Should You Buy Term Insurance in 2022?

Difference between Term Insurance and Life Insurance

Is a Term Insurance Policy Portable?

What are the Documents Required for Term Insurance Plan?

Why 1 Cr Term Plan Is Necessary For Family?

Is It Good To Buy A Term Insurance Plan In 2022?

How to Identify Term Insurance According to Your Needs?

Is There Any Tax Benefit on Term Insurance?

Choosing Riders for Insurance Plans

How To Calculate The Amount Of Term Life Insurance You Need?

How Does A Term Life Insurance Work in India?

Can Term Insurance Plans Be Purchased As A Gift?

All you need to Know about Term Insurance Plans for Housewives

How To Change The Nominee in Term Insurance?

Do Beneficiaries Pay Taxes on Term Insurance?

Gift Your Father A Term Insurance Plan This Father's Day

What is Insurance Premium - A Detailed Guide

Advantages of Buying Term Insurance in Your 50s

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

Do You Need Term Insurance Cover After Retirement?

Ensure Protection Against Death, Disease & Disability With Life Insurance

Term Insurance Basics You Should Know

Tax Benefits of Term Insurance in India

4 Reasons Why You Need Critical Illness Cover

Should You Buy a Term Plan After 40?

8 Things To Do After Buying Term Insurance

Is term Insurance Needed for People With No Dependents?

Does Term Insurance Cover Accidental Death?

Term Insurance Calculator - Everythng You Need To Know

4 Things To Expect From Your Term Insurance Plan in India

Best Investment Plans for Children - Secure Your Child's Future

Can I Buy Term Insurance for a COVID-19 Patient?

Everything About Claim Settlement Ratio for Term Insurance

Why Term Insurance Is Better Than ULIP?

Different Types of Premium in Term Insurance

Do I Need to Give a Medical Test for Term Insurance in India?

Term Plans are Definitely Cheaper than You Think!

Make Your Online Term Plan Your Familys Monthly Payout

Term Plan with Spouse Cover

What Happens if you Hide Facts in your Term Insurance?

Busting Myths and Facts About Term Insurance Policies

How Much Cover Should I Take In A Term Plan?

Term Insurance: Smokers vs Non-Smokers

Term Life Insurance Plan for Smokers vs Non-Smokers

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

Eligibility Criteria for Buying Term Insurance in India

Why Should You Not Take A Term Plan Without Medical Test in India?

Can I Get Term Insurance on Behalf of My Spouse?

Endowment Plans vs Term Plans: Understanding the difference

Increasing Term Insurance and Riders

Term Insurance With Riders In India

What Is a Renewable Term Insurance Policy?

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

How Much Term Life Insurance Cover Do I Need in India?

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

What Types of Deaths Are Covered in a Term Insurance Plan?

Make Your Online Term Plan Your Family's Monthly Pay Cheque

Why does every working woman need life insurance?

Why Should New Parents Buy Term Life Insurance?

How to Compare Term Insurance Online

Why Term Insurance Is Important in times of COVID-19?

Can You Increase Your Term Insurance Cover?

How Does Term Life Insurance Work? Learn the Benefits

What Is the Correct Age to Buy Term Insurance?

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

9 Most Frequently Asked Questions on Term Insurance

8 Benefits of Term Insurance You Should Know

How To Choose the Right Term Insurance Plan?

10-Year Term Life Insurance Policy - Explained in Detail

9 Ways to Help Family Members in Financial Trouble

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

5 Reasons to Buy Term Insurance When You are in Your 30s

Why Buy Term Insurance Even at Rising Rates?

8 Factors to consider before choosing a Critical Illness Insurance

What Should Be The Duration Of Your Term Plan in India?

Term Insurance Age Limit – Term Plan for All Age Groups

What is a short term insurance policy?

Why Premium Amount for Term Insurance is So Low?

Term Insurance: What Happens When You Don’t Pay Your Premiums?

What All Documents Required For Term Insurance In India?

5 Benefits of Early Retirement Planning

Why Buy Term Insurance Plan With a High Cover?

Importance of Term Insurance at Every Stage of Your Life

Cost of Term Insurance Likely to Increase Soon

How to Ensure That Your Term Insurance Claims Are Never Rejected?

Term Insurance – Why You Must Include In Your Financial Planning?

Should Youngsters, Working Couples Buy Term Insurance Plans?

Individual Life Insurance vs. Group Term Life Insurance

Can I Extend the Tenure of My Term Insurance Plan?

Online vs Offline Term Insurance: Which Is The Better Option To Buy

All About Term Insurance Inbuilt Coverage

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

Insurance Policy for Housewife In India

Insuring yourself against Ill Health with a Critical Illness Rider

Planning For Children's Future

Should You Have Multiple Term Life Insurance Policies?

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Can I Make Changes to My Term Insurance Policy Post Purchase?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

6 Types of Death not covered in Term Insurance Plan

Is Group Term Life Insurance Provided By Employer Sufficient?

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

Can Senior Citizens Avail Term Insurance?

Know How to Invest at Every Age for Larger Returns