An individual can claim a deduction of up to Rs 25,000 for the insurance of self, spouse, and dependent children. An additional deduction for the insurance of parents is available to the extent of Rs 25,000 if they are less than 60 years of age, or Rs 50,000 (as per the Budget 2018) if your parents are aged above 60.
If both the taxpayer and the parent whom the medical covers have been taken for are aged more than 60 years, the maximum deduction that can be availed under this section is to the extent of Rs 1,00,000.
The below table captures the quantum of deduction available to an individual taxpayer under various scenarios:
|Scenario||Premium paid (Rs)|
Self, family, children
|Deduction under 80D (Rs)|
|Individual and parents below 60 years||25,000||25,000 50,000|
|Individual and family below 60 years but parents above 60 years||25,000||50,000 75,000|
|Both individual, family and parents above 60 years||50,000||50,000 1,00,000|