SECTION 80D OF INCOME TAX | DEDUCTION RELATED
Demystifying Section 80D: Tax Benefits for Your Health
Section 80D of the Income Tax Act, 1961, is a vital tool for reducing your tax burden while
investing in your well-being. It allows you to claim deductions on expenses related
to medical insurance and preventive healthcare. Let’s break down the key points:
Who can claim the deduction?
Individuals and Hindu Undivided Families (HUFs) are eligible to claim deductions under
Section 80D.
What expenses are covered?
Health insurance premiums: You can claim deductions on premiums paid for yourself,
your spouse, and dependent children. The deduction limit is:
Up to Rs. 25,000 for taxpayers below 60 years of age.
Up to Rs. 50,000 for taxpayers aged 60 years and above (including parents).
Preventive health check-ups: An additional deduction of Rs. 5,000 is available for
expenses incurred on preventive health check-ups for yourself, your spouse,
and dependent children. This falls within the overall limit of Rs 25,000/Rs. 50,000
as applicable.
Important points to remember:
Only premiums paid through non-cash methods like bank transfers, cheques, or credit cards are eligible for deduction.
The deduction is allowed on the actual amount paid for the health insurance policy and not the sum
assured.
Medical bills or expenses are not directly deductible under Section 80D.
Claims can be made for policies purchased from any IRDAI-approved insurance company in India.
Benefits of claiming deductions under Section 80D:
Reduces your taxable income, leading to lower tax liability. Encourages you to invest in health insurance, providing financial security in case of medical emergencies.
Promotes preventive healthcare for a healthier lifestyle
Additional tips:
Compare different health insurance plans before purchasing to choose the one that best
suits your needs and budget. Keep all necessary documents, like premium payment receipts
and health check-up bills, for tax filing purposes. Consult a tax advisor for personalized
guidance on maximizing your deductions under Section 80D. Remember, investing in your health
is an investment in your future. Utilize Section 80D to its full potential and enjoy the
tax benefits while prioritizing your well-being
