What is Section 80D
A person can claim a deduction for the health insurance premium and expense incurred towards preventive health checkup for self, spouse, dependent children and parents. This is-subject to the terms and conditions mentioned in the Section 80D of the Income Tax Act, 1961.
Deduction for medical insurance premiums and medical expenses for senior citizens is allowed to the Individual or HUF category of taxpayers only.
Individual or HUF taxpayers, insurance can be availed for :
- Self
- Spouse
- Dependant
- children
- Parents
Any other entity cannot claim this deduction. For example, a company or a firm cannot claim a deduction under this section.
Payments eligible as deduction under Section 80D
An individual or HUF can claim deduction under Section 80D for the payments mentioned below:
- A medical insurance premium paid for self, spouse, children or dependent parents in any mode other than cash.
- Expenditure incurred on the account of preventive health check-up
- Medical expenditure incurred on the health of senior citizen (aged 60 years or above) who is not covered under any health insurance scheme.
- The contribution made to the Central Government health scheme or any scheme as notified by the government.
Deduction available under Section 80D
| Particulars | Maximum limit |
Self, spouse and dependent children are NSC*
&
Parents are NSC | Self, spouse and dependent children are NSC
&
Parents are SC** | Self, spouse and dependent children are SC
&
Parents are SC |
| (A) Medical insurance premium (including preventive health check-up limit of Rs. 5000) of self, spouse and dependent children | Rs. 25,000 | Rs. 25,000 | Rs. 50,000 |
| (B) Medical insurance premium and preventive health check-up taken for Parents | Rs. 25000 | Rs. 50,000 | Rs. 50,000 |
| (C) Medical expenditure of self, spouse and dependent children | Not applicable | Not applicable | Covered within the limit of Rs. 50,000 in (A) |
| (D) Medical expenditure for parents | Not applicable | Covered within the limit of Rs. 50,000 in (B) | Covered within the limit of Rs. 50,000 in (B) |
| Overall Limit under section 80D | Rs. 50,000 | Rs. 75,000 | Rs. 1,00,000 |
| Scenario | Premium paid (Rs) | | Deduction under 80D (Rs) |
|---|
| | Self, family, children | Parents | |
| Individual and parents below 60 years | 25,000 | 25,000 | 50,000 |
| Individual and family below 60 years but parents above 60 years | 25,000 | 50,000 | 75,000 |
| Both individual, family and parents above 60 years | 50,000 | 50,000 | 1,00,000 |
| Members of HUF | 25,000 | 25,000 | 25,000 |
| Non-resident individual | 25,000 | 25,000 | 25,000 |
What is a preventive health check-up under 80D?
The government introduced preventive health checkup deduction in 2013-14 to encourage citizens from being more proactive towards health. The idea of preventive health check-ups is to identify any illness and mitigate risk factors at an early stage through frequent health checkups.
Section 80D includes a deduction of Rs 5,000 for any payments made towards preventive health check-ups. This deduction will be within the overall limit of Rs 25,000/Rs 50,000, as the case may be. This deduction can also be claimed either by the individual for himself, spouse, dependent children or parents.
The payment for preventive health check-ups can be made in cash.
Created & Posted By Sapna Choudhary
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