Section 80D of Income Tax Act

Every individual taxpayer or Hindu Undivided Family is eligible to claim a deduction while filing for the income tax return for medical insurance premiums paid under Sec. 80D. The individual can claim the deduction either for himself, spouse, dependent children, or parents.

What are the provisions under Section 80D?

Every individual taxpayer or Hindu Undivided Family is eligible to claim a deduction while filing for the income tax return for medical insurance premiums paid. This deduction is granted to every taxpayer under Section 80D of the Income Tax Act 1961. This deduction is also allowed for a top-up of the health plans as well as for critical illness plans.

The benefit of the deduction is not limited to a health insurance plan for self; it is available for the policy taken for the family, children, and spouse.

Who is eligible for Section 80D deduction?

A taxpayer, either an individual or Hindu Undivided Family, can claim for Sec. 80D deduction for the payments listed as follows:

• The taxpayer pays a medical insurance premium for oneself, husband or wife, dependent parents, or children. The premium should not be paid in cash but in any other mode.
• An expense incurred in the check-up for preventive health purposes.
• A medical expense incurred for a dependent senior citizen is not covered under any health insurance scheme.
• The investment made to the health scheme or any scheme notified by the Central Government.

What are the eligible deduction medical expenses under Section 80D?

The deduction for medical expenses is limited to Rs. 25,000 in a financial year under Sec. 80D of the Income Tax Act, applicable for individual and Hindu undivided families. The manners they can avail the deduction are as follows:

• Individual: An individual taxpayer can avail a deduction of up to Rs 25,000 for the insurance of ownself, husband or wife, and dependent parents and children. In the case of dependent parents' insurance, an additional deduction of Rs. 50,000 if the age of parents is 60 years or above, otherwise the extension is up to Rs. 25,000. If the taxpayer's parents are senior citizens, the deduction can be extended up to Rs. 1,00,000.
• Hindu Undivided Family: A deduction can be claimed by HUF for the mediclaim or insurance taken by any member of the family. An additional deduction of Rs. 50,000 if the age of the member is 60 years or above; otherwise, the extension is up to Rs. 25,000.

Through the budget 2013-14, the Government of India included the expenses involved in preventive health check-ups are eligible for a deduction under Sec. 80D. This is targeted to encourage the citizens to take good care of their health, and in case of any illness, early diagnosis will be helpful for the better health conditions of the citizens.

Section 80D allows Rs 5,000 as the deduction for any expenses involved in the preventive health check-ups. Depending on the situation, the deduction will be limited to Rs 25,000 or Rs 50,000, as the case may be.

The individual can claim the deduction either for himself, spouse, dependent children, or parents. The payment made in cash for preventive health check-ups can be included.