Income tax Act allows for certain deductions from the gross annual income. Section 80D of the Income Tax Act, 1961 relates to the tax deductions on medical insurance. Section 80D of the Income Tax was introduced in 2018 with the aim to promote medical planning.
Eligibility Criteria under Section 80D:
An individual taxpayer is eligible to claim deductions under section 80D. The health insurance premium paid for the family members are eligible for Self, Spouse, DependentChildren, Parents. Hindu Undivided Families are also eligible to claim deductions under this section. NRIs too can claim this deduction.
Maximum deduction under Section 80D:
Following deductions are available under Section 80D:-
i) The maximum deduction of Rs. 25,000 per year on health insurance premium for self and family.
ii) The maximum deduction of Rs. 30,000 per year for senior citizens.
iii) The maximum deduction of Rs.25,000 per year on health insurance premium paid on behalf of parents.
iv) The maximum deduction of Rs.30,000 per year on premium payments for senior citizen parents.
v) Every year expenditure related to health diagnosis of Rs.5,000 can be claimed against all members in a family including spouse, kids, and parents.
vi) A HUF can claim a deduction under section 80D for a mediclaim taken for any of the members of the HUF upto Rs 25,000 if the member insured is less than 60 years and Rs 50,000 if the insured is 60 years of age or more.
Other Important points:
i) HUFs are, however, not eligible for health insurance tax benefits for preventive health-care check-ups.
ii) You can claim for the deductions only if the premiums are paid either by credit card or cheque.
iii) NRIs too can claim this deduction.
iv) Where a taxpayer has made a lumpsum premium payment in a single year for a policy valid for more than one year, he can claim a deduction equal to the appropriate fraction of the amount, under Section 80D.
For more details contact out team at +91-7991109093 or drop email us at [email protected]
Note: This Post was last updated on January 23, 2023
Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation i.e. January 23, 2023. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, We assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. We assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL WE SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION.
