Section 80D of the Income Tax allows deduction from taxable income in respect of medical insurance premium or medical expenses paid for your parents. Let’s analyze how you can save tax while taking care of your parents.

Deduction under section 80D is allowed for

  • A medical insurance premium paid for dependent parents in any mode other than cash.

  • Expenditure incurred on the account of preventive health check-up.

  • Medical expenditure incurred on the health of senior citizen (aged 60 years or above) who is not covered under any health insurance scheme.

Deduction under section 80D

  • The contribution made to the Central government health scheme or any scheme as notified by the government.

Section 80D allows deduction

Section 80D allows deduction of

  • Up to INR 25000,

    – if parents are below 60 years of age

  • Up to INR 50000,

    – if parents are above 60 years of age

Now, let’s use the income tax calculator to see how much tax you can save while taking care of your parents.

Step 1: Open the income tax calculator

Step 2: Key in your salary details

Salary details
Salary details

Step 3: Declare your investments

Declare investments

Step 4: Now, calculate income tax

Calculate income tax

As per the calculation, you have a total tax liability of INR 100000

Try the Free Online Income Tax Calculator

Open Income Tax Calculator

Step 5: Declare Section 80D Contribution

Medical Insurance Premium for Parents(Senior Citizens)

Declare Section 80D Contribution

Step 6: Calculate income tax again

Calculate income tax

As you see, the taxable income has come down by INR 50000 and the total tax liability has come down to INR 89600; You saved INR 10400.

Step 7: Declare Section 80D Contribution

Medical Insurance Premium for Parents under age of 60

Declare Section 80D Contribution

Step 8: Calculate income tax again

Calculate income tax

As you see, the taxable income has come down by INR 25000 and the total tax liability has come down to INR 94800; You saved INR 5200.

Save maximum Income Tax with the
Free Online Income Tax Calculator!

Open Income Tax Calculator

Section 80D allows you to save income tax while taking care of your parents. Save further if your parents are senior citizens.