Section 80D of Income Tax Act "Deduction in respect of health insurance premia"
80D. (1) In computing the total income of an assessee,
being an individual or a Hindu undivided family, there shall
be deducted such sum, as specified in sub-section (2) or
sub-section (3), payment of which is made by any mode as
specified in sub-section (2B), in the previous year out of
his income chargeable to tax.
(2) Where the assessee is an individual, the sum referred to
in sub-section (1) shall be the aggregate of the following,
namely:-
(a) the whole of the amount paid to effect or to keep in
force an insurance on the health of the assessee or his
family or any contribution made to the Central Government
Health Scheme or such other scheme as may be notified by the
Central Government in this behalf or any payment made on
account of preventive health check-up of the assessee or his
family as does not exceed in the aggregate twenty-five
thousand rupees; and
(b) the whole of the amount paid to effect or to keep in
force an insurance on the health of the parent or parents of
the assessee or any payment made on account of preventive
health check-up of the parent or parents of the assessee as
does not exceed in the aggregate twenty-five thousand
rupees;
(c) the whole of the amount paid on account of medical
expenditure incurred on the health of the assessee or any
member of his family as does not exceed in the aggregate
fifty thousand rupees; and
(d) the whole of the amount paid on account of medical
expenditure incurred on the health of any parent of the
assessee, as does not exceed in the aggregate fifty thousand
rupees:
Provided that the amount referred to in clause (c) or clause
(d) is paid in respect of a senior citizen and no amount has
been paid to effect or to keep in force an insurance on the
health of such person:
Provided further that the aggregate of the sum specified
under clause (a) and clause (c) or the aggregate of the sum
specified under clause (b) and clause (d) shall not exceed
fifty thousand rupees.
Explanation.-For the purposes of clause (a), "family" means
the spouse and dependant children of the assessee.
(2A) Where the amounts referred to in clauses (a) and (b) of
sub-section (2) are paid on account of preventive health
check-up, the deduction for such amounts shall be allowed to
the extent it does not exceed in the aggregate five thousand
rupees.
(2B) For the purposes of deduction under sub-section (1),
the payment shall be made by-
(i) any mode, including cash, in respect of any sum paid on
account of preventive health check-up;
(ii) any mode other than cash in all other cases not falling
under clause (i).
(3) Where the assessee is a Hindu undivided family, the sum
referred to in sub-section (1), shall be the aggregate of
the following, namely:-
(a) whole of the amount paid to effect or to keep in force
an insurance on the health of any member of that Hindu
undivided family as does not exceed in the aggregate
twenty-five thousand rupees; and
(b) the whole of the amount paid on account of medical
expenditure incurred on the health of any member of the
Hindu undivided family as does not exceed in the aggregate
fifty thousand rupees:
Provided that the amount referred to in clause (b) is paid
in respect of a senior citizen and no amount has been paid
to effect or to keep in force an insurance on the health of
such person:
Provided further that the aggregate of the sum specified
under clause (a) and clause (b) shall not exceed fifty
thousand rupees.
(4) Where the sum specified in clause (a) or clause (b) of
sub-section (2) or clause (a) of sub-section (3) is paid to
effect or keep in force an insurance on the health of any
person specified therein, and who is a senior citizen, the
provisions of this section shall have effect as if for the
words "twenty-five thousand rupees", the words fifty
thousand rupees" had been substituted.
Explanation.-[***].
(4A) Where the amount specified in clause (a) or clause (b)
of sub-section (2) or clause (a) of sub-section (3) is paid
in lump sum in the previous year to effect or to keep in
force an insurance on the health of any person specified
therein for more than a year, then, subject to the
provisions of this section, there shall be allowed for each
of the relevant previous year, a deduction equal to the
appropriate fraction of the amount.
Explanation.-For the purposes of this sub-section,-
(i) "appropriate fraction" means the fraction, the numerator
of which is one and the denominator of which is the total
number of relevant previous years;
(ii) "relevant previous year" means the previous year
beginning with the previous year in which such amount is
paid and the subsequent previous year or years during which
the insurance shall have effect or be in force.
(5) The insurance referred to in this section shall be in
accordance with a scheme made in this behalf by-
(a) the General Insurance Corporation of India formed under
section 9 of the General Insurance Business (Nationalisation)
Act, 1972 (57 of 1972) and approved by the Central
Government in this behalf; or
(b) any other insurer and approved by the Insurance
Regulatory and Development Authority established under
sub-section (1) of section 3 of the Insurance Regulatory and
Development Authority Act, 1999 (41 of 1999).
Explanation.-For the purposes of this section,-
(i) "senior citizen" means an individual resident in India
who is of the age of sixty years or more at any time during
the relevant previous year;
(ii) [***].