Section 80D

What is Section 80D?

80D is section of Income Tax Act in which government encourages individuals to invest in some financial products (mainly Medical Insurance Premium) and save tax on income. These financial products will help individual to manage their medical expenses better.

Following financial products are included under Section 80D:

Medical Insurance Premium - Medical Insurance premium paid by individual for their medical insurance policy. Medical insurance premium paid for their dependent's medical insurance policy are also considered. Individual can take multiple medical insurance policies for them and their dependents.
This medical insurance premium is different than medical bills (which has limit of 15,000/-). Individual needs to submit the proof of Medical Insurance Premium paid certificate.

Limit of Section 80D:

Current limit of section 80D is 15,000/- in case individual's age below 65 years. For senior citizens above 65 years limit is 20,000/-.
Additional 15,000/- can be claimed for parent's medical insurance policy (20,000/- in case of parents are senior citizen.).

Note: Government of India will make change in this Section 80D based on current condition of economy in country & world.