80D Health Insurance: Can You Claim ₹25K Deduction?
Your company pays for your group health insurance, so you cannot claim it as a tax deduction. Section 80D only works when YOU pay the premium from your own pocket — not your employer.
Most salaried Indians pay ₹0 out-of-pocket for office health cover — and get ₹0 tax benefit too.
You could save this much in tax under Section 80D — but only if you pay yourself
Key Takeaways
Check your salary slip or CTC breakdown — if the health insurance premium is deducted from your in-hand pay, collect receipts to claim 80D.
Buy a separate personal or family floater health policy yourself to unlock the full ₹25,000 deduction (₹50,000 if parents are senior citizens).
File Form 16 carefully this ITR season — do not claim employer-paid insurance premiums under 80D, as it can trigger a tax notice.
Your company pays for your group health insurance, so you cannot claim it as a tax deduction. Section 80D only works when YOU pay the premium from your own pocket — not your employer.
Here's what happened: Section 80D allows deductions up to ₹25,000/year on health insurance premiums — but only on policies you personally pay for.. Employer-paid group health insurance premiums are treated as a business expense for the company, not a personal expense for you as an employee.. If your employer deducts the premium from your salary (cost-to-company structure), you may be able to claim it — but only with clear proof that you bore the cost..
What you should do: Check your salary slip or CTC breakdown — if the health insurance premium is deducted from your in-hand pay, collect receipts to claim 80D.. Buy a separate personal or family floater health policy yourself to unlock the full ₹25,000 deduction (₹50,000 if parents are senior citizens).. File Form 16 carefully this ITR season — do not claim employer-paid insurance premiums under 80D, as it can trigger a tax notice..
Parents' health insurance is a bonus deduction — pay premiums for senior citizen parents yourself and claim an extra ₹50,000 under 80D on top of your own ₹25,000 limit.
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