This calculator computes the total tax deductions you can claim under Section 80D of the Indian Income Tax Act for health insurance premiums and preventive health checkups. It automatically caps claims according to the age of the insured family members and provides estimates of the actual tax cash saved in your tax bracket.
- 1
Self, Spouse & Kids Premium: Type the annual medical insurance premiums paid for yourself, your spouse, and dependent children.
- 2
Eldest Member Under 60: Select whether the eldest family member in your immediate household is under 60 years of age.
- 3
Parents Premium: Type the health insurance premiums paid for your parents.
- 4
Parents Under 60: Select whether your parents are under 60 years of age.
- 5
Preventive Health Checkup: Enter any expenses incurred during the year for preventive medical checkups (maximum benefit is ₹5,000).
- 6
Tax Slab: Select the income tax bracket that applies to you (5%, 20%, or 30%) to estimate tax savings.
- The Concept: Section 80D allows deductions for medical insurance premiums paid for self/family and parents. The standard deduction limit is ₹25,000. However, if the eldest insured person in a bracket (family or parents) is a senior citizen (60+ years), the limit increases to ₹50,000. Up to ₹5,000 paid for preventive checkups can also be claimed within these brackets.
- The Formula:
- Self Bracket Limit = Eldest under 60 ? ₹25,000 : ₹50,000
- Parents Bracket Limit = Parents under 60 ? ₹25,000 : ₹50,000
- Allowed Preventive = min(Checkup, 5,000)
- Self Claim = min(Self Premium + Allowed Preventive, Self Limit)
- Parents Claim = min(Parents Premium + (Allowed Preventive - Claimed in Self), Parents Limit)
- Total 80D Deduction = Self Claim + Parents Claim
- Tax Cash Saved = Total 80D Deduction × (Tax Slab / 100) × 1.04 (including 4% health and education cess)
For example, you pay ₹20,000 premium for yourself (under 60), ₹30,000 premium for your senior citizen parents (60+), and spent ₹5,000 on preventive health checkups. You are in the 30% tax slab.
- Self Limit = ₹25,000 | Parents Limit = ₹50,000
- Allowed Preventive = ₹5,000
- Self Claim = min(₹20,000 + ₹5,000, ₹25,000) = ₹25,000
- Parents Claim = min(₹30,000 + 0, ₹50,000) = ₹30,000
- Total 80D Deduction = ₹25,000 + ₹30,000 = ₹55,000
- Tax Cash Saved = ₹55,000 × 31.2% = ₹17,160
