Section 80D deduction for NRIs: health insurance premiums explained
NRIs can claim Section 80D deductions up to ₹25,000 for their own health insurance and up to ₹50,000 for senior citizen parents' premiums — total up to ₹75,000 per year under the old tax regime. Premiums must be paid from NRO or Indian bank accounts to qualify. Section 80D is not available under the new tax regime.
Up to ₹75,000 deduction for NRI and senior parents combined
NRIs can claim Section 80D up to ₹25,000 for their own health insurance premiums and up to ₹50,000 for health insurance of parents above 60 (senior citizens). The combined maximum is ₹75,000 per year. Preventive health check-up costs up to ₹5,000 also qualify within the overall limit. Only under the old tax regime.
Key points
- ₹25,000 for self, ₹50,000 for senior parents — NRIs below 60 get ₹25,000 for self/spouse/children; ₹50,000 for senior citizen parents. Total: ₹75,000.
- Old tax regime only — Section 80D is not available if you opt for the new (default) tax regime — choose old regime when filing ITR to claim this deduction.
- Pay from NRO or Indian account — Premiums paid in cash are not eligible. Payment must be by cheque, bank transfer or UPI from an Indian or NRO account.
Section 80D limits for NRIs
Self, spouse and dependent children (NRI below 60): up to ₹25,000 for health insurance premiums.
Self (NRI above 60): up to ₹50,000 for health insurance premiums.
Parents (below 60): up to ₹25,000.
Parents (above 60, i.e. senior citizens): up to ₹50,000.
Preventive health check-up: up to ₹5,000 within the above limits.
Example for NRI below 60 with senior parents: ₹25,000 (self) + ₹50,000 (parents) = ₹75,000 maximum.
What qualifies and what does not
Qualifies: Indian health insurance premiums for mediclaim/indemnity policies, critical illness riders, top-up plans, senior citizen health plans.
Qualifies (with care): premiums paid for NRI's overseas health insurance IF the policy is an Indian-issued policy (IRDAI-regulated). International health insurance policies from overseas insurers typically do not qualify.
Does not qualify: premiums paid in cash, premiums from a foreign bank account (overseas) — pay from NRO or NRE, group employer health insurance not paid by the individual.
Does not qualify: life insurance premiums (80C, not 80D), term insurance premiums (80C, not 80D).
Frequently asked questions
Can NRIs claim 80D if parents are covered by a group policy?
If the parents are covered by a group employer policy and the NRI is not paying the premium, no deduction is available. If the NRI pays a top-up or additional premium, that portion may qualify.
Does the deduction apply if I pay parents' premium from NRE account?
NRE funds are overseas-sourced — premiums paid from NRE may be treated as foreign payment. The safest approach is to pay from NRO. Consult your CA for the current guidance on NRE payments.
What proof do I need for 80D claim in ITR?
Keep the insurance policy document and premium payment receipts. For preventive health check-up, keep the lab receipt. There is no need to attach these to the ITR — but you must retain them for assessment purposes.