Section 80D Deductions Medical and Health insurance
Section 80D under Chapter VI A of Income Tax
What is Section 80D ?
According to Section 80D of the Income Tax Act, 1961, eligible taxpayers can deduct their health insurance premiums. A person or HUF can deduct medical insurance premiums paid during any given year from their total income under Section 80D. This deduction is also available for additional health insurance and critical illness insurance.
Health insurance premiums paid for yourself, your spouse, dependent children, and parents can be deducted under Section 80D.
Eligibility for tax deduction under section 80D
- Individuals and HUFs (Hindu Undivided Families) can use Section 80D to claim a tax deduction from their taxable income.
- A tax deduction is available under Section 80D if you pay premiums for health insurance coverage that you, your spouse, your children, or your parents have purchased.
- If you pay for your parents’ treatment or medical check-ups after the age of 80, you will be free from paying taxes. However, you must guarantee that your parents do not have separate health insurance coverage in these instances.
- All deductions are subject to the current regulations, according to Section 80D of the Income Tax Act.
Limit of deduction under section 80D
Under Section 80D, there is a maximum deduction of ₹25,000 for anyone under the age of 60.
The 25,000 rupee limit includes 5,000 rupees for routine health checks.The maximum deduction rises to Rs. 50,000 for covered individuals older than 60.
Case I: Self and parents both under 60 | Case II: Self is under 60 and parents are above 60 | Case III: Parents and self both above 60 years old | |
Deduction for self, spouse, and children who are dependant | ₹ 25,000 | ₹ 25,000 | ₹ 50,000 |
A parent’s deduction | ₹ 25,000 | ₹ 50,000 | ₹ 50,000 |
Maximum deduction | ₹ 50,000 | ₹ 75,000 | ₹ 100,000 |
Deduction = health insurance premiums and the cost of routine checkups
What are the exclusions under Section 80D?
It is not possible to claim a deduction under Section 80D:
- In the event that the health insurance premium is paid in cash. Expenses for medical care can be covered through cash.
- If payment is paid on behalf of a working child, sibling, grandparent, or other relatives
- Group health insurance premiums paid by the employer on behalf of the employee.
Things to keep in mind
The following points should be kept in mind before purchasing medical insurance:
- In the case of working children, you cannot claim Section 80D tax exemption if you pay premiums on their behalf.
- You are not eligible for a tax deduction under Section 80D if you pay premiums for your siblings, grandparents, uncles, aunts, or any other family members.
- Suppose your parents part-paid your premiums, you and they can both get tax benefits under Section 80D.
- It is not possible for you to claim a tax deduction for the premiums paid for group medical insurance provided by your employer.
We have reached the conclusion of this post on 80D Deductions under medical insurance/health insurance. Feel free to share your views and opinions with us in the comment section below.
FAQs on section 80D
No, you cannot claim deductions on premium paid in cash.
In these cases, you can claim deductions.
No, you cannot claim a deduction unless the premium was paid for dependent children.
Health check-up deductions of Rs.5000 can be claimed for all dependants in the family. This deduction is not available for each individual.
For any expenses made on preventative health checkups, Section 80D allows a deduction of Rs 5,000.
The maximum deduction allowed under Section 80D for individuals under the age of 60 is rupees 25,000.
Both term insurance contracts have riders for health insurance. Under Section 80D, you are also eligible to deduct an extra INR 50,000.
Senior persons may receive an income tax refund on any medical costs they may have incurred according to Section 80D of the Indian Income Tax Act, 1961.
