This deduction is available to an individual or HUF whether resident or non resident.


In case of an individual, deduction shall be aggregate of the following:


Premium paid for self, spouse and dependent children. Deduction allowed is lower of:

  • Amount of premium paid for medical insurance.
  • Maximum of Rs.25,000 p.a. 


 Premium paid for parents (less than 60 years) whether dependent or not. Additional Deduction allowed is lower of:

  • Amount of premium paid for medical insurance
  • Maximum of Rs.25,000 p.a. 


Note: If the parents are senior citizens then limit has been raised to Rs.50,000p.a ( It has been increased from Rs.30,000 in Budget 2018).


A summary of deduction allowed under Section 80D is explained in table below:


Nature
Family Member
Parents
Age less than 60 years
Age more than 60 years
Age less than 60 years
Medical Insurance
25,000
50,000
25,000
Central Government Health Scheme (CGHS)
25,000
50,000
-
Preventive Health Check-up
5,000
5,000
5,000
 Medical Expenditure
-
50,000
-
Maximum deduction
25,000
50,000
25,000


Therefore, an assessee can claim a maximum deduction of Rs. 1,00,000 in a financial year (If his age and his parents age is more than 60 years)