The person who paid medical insurance premium himself or spouse or parents or depended children can claim the deduction from total income of the person as per the instructions given below. We will discuss here the complete detail about deduction under section 80D for the A.Y. 2016-17 and A.Y. 2015-16

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Who can claim deduction under section 80D?

Individual and HUF assesee can claim the deduction under section 80D for any medical insurance premium known as MEDICLAIM.
THE DEDUCTION IS ALLOWED ONLY UNDER AN APPROVED SCHEME OF GENERAL INSURANCE CORPORATION OF INDIA OR ANY CONTRIBUTION MADE TO CENTRAL GOVERNMENT HEALTH SCHEME OR ANY SIMILAR NOTIFIED SCHEME.

How much deduction is allowed under section 80D?

1) In case of an individual, the maximum deduction is allowed is Rs.15000 (Rs.20,000 in case any person insured is a resident senior citizen 60 years or above.) and Rs. 15000 for any parent or parents  (Rs.20,000 in case of resident senior citizen 60 years or above).
THE DEDUCTION IS ALLOWED UP TO RS.5000 IN THE CASE OF PREVENTIVE HEALTH CHECK-UP OF SELF, SPOUSE, PARENT(S) OR DEPENDENT CHILDREN IN AGGREGATE.
2)  In case of HUF, the maximum deduction is Rs. 25,000 (Rs. 30,000 in case any person insured is a resident senior citizen 60 years or above).

Conditions Related to Deduction under section 80D

1)   You must note here that the deduction is allowed only if the payment is made from your own income during the pervious year.
2)   Any premium for health insurance or CGHS shall be made by any mode except cash. However, cash payment shall be accepted if paid during preventive health check-up.

Table Showing Total Deduction Allowed under section 80D

Persons
Assessee, Spouse and Dependent Children
Parents (Whether Dependent or Not)
Total Deduction
Person less than age of 60 years
25000
25000
50000
Person Less than age of 60 years and parents above age of 60 years
25000
30000
55000
Person above age of 60 years and parents above 60 years
30000
30000
60000

The main and important point of Deduction for Medical Insurance Premium (MEDICLAIM) under section 80D is that, it does not included in deduction under section 80C (Rs.1,50,000 in total).  

In simple words, you can get deduction under section 80D extra over section 80C.

Tax Planning Through MEDICLAIM (Medical Insurance Premium) Under Section 80D

So it is good strategy to pay your medical insurance premium yearly for you, wife/husband, children and parents. The premium is deductible u/s 80D up to a maximum of Rs. 25,000 (Rs, 30,000 if person insured is 60 years or more).
The other thing you must note that medical insurance premium paid for parents having more benefits. The benefits to get health insurance policy for the parents are care of your parents and getting extra Rs.25,000 deduction under section 80D (Rs.30,000 if any parent is 60 years or more). It is immaterial that parents are depended or not.