Investments made towards payment of health insurance premiums, qualify for a tax deduction under section 80D. Conditions to be satisfied to get deduction under section 80D 1. The taxpayer is an individual or a Hindu Undivided Family (HUF). 2. Insurance premium is paid in accordance with the scheme framed in this behalf by the General Insurance Corporation of India (known as Mediclaim Insurance Policy) and approved by the Central Government or in accordance with a scheme framed in this behalf by any other insurer and approved by Insurance Regulatory and Development authority. 3. The aforesaid premium can be paid by any mode other than cash. 4. It is paid out of income chargeable to tax. 5. Mediclaim policy is taken on the health of the taxpayer, spouse, parents or dependent children of the taxpayer and in case of HUF on the health of any member of the family. Amount of Deduction Mediclaim policy is taken on the health of individuals less than 65 years of age, amount of health insurance premium paid or Rs. 15,000, whichever is lesser. Mediclaim policy is taken on the health of senior citizens above 65 years, amount of health insurance premium paid or Rs. 20,000, whichever is lesser. Additional deduction of Rs 15,000 could be claimed, for buying health insurance policy for your parents (Rs 20,000 if either of your parents is a senior citizen). This is irrespective of whether they’re dependent on you or not. No deductions can be claimed for in-laws. Partly contribution If part payment is done by you and part payment by your parent, both can claim deduction to the extent of their contribution subject to maximum allowed but amount should be paid directly to insurance company and paid through mode other than by cash. Proper Tax Planning plays significant role in lowering over all tax expenditure. We at Taxmantra.com have the expertise in handling complicated individual taxation issues. Do contact us immediately, if you have any tax issues or simply want to save taxes.