Financial Calculators
Section 80D Deduction Calculator
Health premiums come with a deduction. Two limits, both higher for seniors.
Tax saved under Section 80D
₹19,500
₹65,000 deductible of a possible ₹75,000
- Deduction for self and family
- ₹25,000
- Deduction for parents
- ₹40,000
- Total deduction
- ₹65,000
Old tax regime only. Two separate limits: one for you, spouse and children, another for parents, each higher when the insured person is a senior citizen. The preventive check-up allowance sits inside the self limit. Premiums must be paid by any mode other than cash.
These figures are for illustrative purposes only and are not investment advice. Please consult your investment adviser for investment related advice.
The other health-related deduction
Section 80D allows a deduction for health insurance premiums under the old tax regime, with one limit for yourself, spouse and children and a separate limit for your parents. Each limit is higher when the insured person is a senior citizen, and a small allowance for preventive health check-ups sits inside the self limit. Paying for senior parents' cover is therefore among the most tax-efficient premiums a household can buy.
Limits change with Budgets, which is why they are inputs here. The calculator applies them and shows the tax saved at your slab.
Two limits, one deduction
Self and family = min(premium + min(check-up, check-up cap), cap for self)\nParents = min(premium, cap for parents)\nTax saved = (self + parents) x slabWorked example: Rs 30,000 of premium for yourself and family plus a Rs 5,000 check-up is capped at Rs 25,000; Rs 40,000 for senior-citizen parents is within their Rs 50,000 limit. The deduction is Rs 65,000 of a possible Rs 75,000, saving Rs 19,500 at the 30% slab.
Frequently asked questions
Is 80D available under the new regime?
No. Like 80C, it belongs to the old regime. Compare your total tax under both before deciding which to file under.
Can I claim for a multi-year premium paid at once?
Yes, proportionately: the premium is spread evenly over the years the policy covers and each year's share is claimed in that year.
Do premiums paid in cash qualify?
No. Premiums must be paid by any mode other than cash. Preventive check-up expenses are the one item that may be paid in cash.
What if my parents are not dependent on me?
Dependence is not required for parents; paying the premium is enough. It is required for children, and a spouse qualifies regardless.
Premiums that also cut your tax bill.
We structure family and parents' health cover to use both 80D limits and to actually protect the family.