Section 80D allows a variety of deductions on premiums paid on health insurance as well as medical expenses incurred. Various sections of this section provide various forms of deduction, as mentioned earlier.
Let us summarize them for a better understanding:
Health insurance premium
As you can see from the table above, one can claim a tax benefit of up to ₹25,000 for the following:
1. Premium paid for health insurance covering self, spouse and/or dependent children.
2. Contributions to Central Health Government Schemes.
One should consider taking medical insurance not just for obtaining tax benefits but for meeting medical expenses too. As we all know, medical emergencies come unannounced and medical treatments can be very expensive. Medical insurance is your friend in times of need.
Types of health insurance policies available in India:
To understand the nuances of medical insurance, you can read our module on health insurance.