Hello, in this post we are going to discuss about Section 80D deductions for medical and health insurance.
We will cover the following topics:
- What is Section 80D?
- Limit of deduction under Section 80D
- Exclusions under Section 80D
- Things to keep in mind
What is Section 80D?
Any individual / HUF can claim a deduction of Rs. 25,000 under Section 80D for their medical insurance. This is deducted from the total income of an individual in any given year.
A person can also cover the health checkup expenses for self, spouse, dependent children as well as parents. Section 80D is over and above the deductions claimed under section 80C/CCC/CCD.
Limit of deduction under Section 80D
Let us take a look at the deduction limit under Section 80D in the table below:
|Coverage||Exemption limit||Health checkup exemption||Total|
|Self and Family||Rs. 25,000||Rs. 5,000||Rs. 25,000|
|Self and Family + Parents||(Rs. 25,000+Rs. 25,000) ie, Rs. 50,000||Rs. 5,000||Rs. 55,000|
|Self and Family + Senior citizen parents||(Rs. 25,000 +Rs. 30,000) ie, Rs. 55,000||Rs. 5,000||Rs. 60,000|
|Self (Senior citizen) and Family + Senior citizen parents||(Rs. 30,000 +Rs. 30,000) ie, Rs. 60,000||Rs. 5,000||Rs. 65,000|
If the taxpayer and parents both are senior citizens, then the maximum deduction under this section is up to Rs.1 lakh.
Exclusions under Section 80D
The taxpayers are not eligible for any tax benefits if they make premium payments in cash. But you can make payments for preventive health check-ups by cash.
Other exclusions are:
- Service Tax Charges: It is chargeable on health insurance paid. So taxpayers will not get tax benefits on service tax imposed on this insurance.
- Group Health Insurance: This policy is not eligible for any tax benefits. But taxpayers can also make extra premium payments and claim the deductions.
Things to keep in mind
- Payment for health insurance premium can not be made by cash. But the payment for the medical expense can be made by cash.
- Contribution towards health plan should be as specified by the Central Govt./ approved by IRDA.
- Health insurance for brother, sister, grandparents, aunts, uncles or any other relative cannot be claimed.
- Insurance for your employed children cannot be claimed.
- If the insurance payment is done by you and parent, both of you can claim the deduction.
- Without the Service Tax and Cess portion of the premium amount, you can calculate the deduction.
- Company’s group Health Insurance cannot be claimed.
With that, we have come to an end of this post. Share your views and queries with us in the comments section below.