To save under Section 80D:
Health Insurance: Buy a comprehensive health cover if you haven't bought one. It will not only save hospitalisation cost at a later date, but also give an additional tax exemption of up to Rs 15,000 yearly per person, if you are paying for a cover for yourself. In case you are paying towards a health insurance bought for your parents, then you can get an exemption of up to Rs 20,000 annually for each parent.
If you are incurring expenditure for the treatment of a handicapped dependent, then you can claim a deduction of Rs 50,000 or the expenses incurred, whichever is lesser, under section 80DD. For severe handicap conditions, the deduction limit is enhanced to Rs 1 lakh. And, you can claim tax relief under Section 80D and Section 80DD separately.
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