Section 80D Deduction –  Income Tax

Section 80D could be a facility introduced within the taxation Act to permit taxpayers to say a deduction for medical premiums paid. Claiming a deduction under this section reduces the tax burden of people by allowing a claim of deduction for up to Rs. 25,000 annually for medical payments. Section 80D Deduction is claimed on eligible medical premiums bought by the individual, spouse, and dependent children.

Eligibility Criteria

Deduction under section 80D is often availed by all taxpayers for creating remittances of any premium or mediclaim policy availed within the name of:

  • The taxpayer himself
  • The spouse of the taxpayer
  • Dependent children of the taxpayer
  • Parents of the taxpayer

Non-dependent Children

Insurance payments for non-dependent children don’t qualify as a deduction under this section, though the youngsters are entitled to avail of the deduction from their total income.

Group Health Policies

Group health policies are generally excluded from the ambit of Section 80D, except if the taxpayer has an independent insurance policy added to the group health policy.

Multiple Health Insurance Policies

Taxpayers are allowed to say tax exemptions for multiple insurance policies by ensuring the satisfaction of the stipulated eligibility conditions and therefore the consistent remittance of premiums for the present insurance policies.

Treatments Availed Abroad

Treatments availed abroad by the taxpayers are claimed as a deduction if endorsement from the respective insurance entity is accessible. However, the commercial enterprise from which the policy is availed should be registered with the Insurance administrative unit of India.

Mode Of Money Payment

Deductions for medical insurance premiums are claimed exclusively if the supposed amount of payment to the service was remitted using online banking, cheque draft, debit/credit cards, or other online mediums. However, instalments remitted for any preventive health check-ups are often remitted through cash.

Amount Of Deduction

An individual paying insurance premium for himself, spouse, or dependent children is allowed a deduction for an amount which may extend up to a maximum of Rs.25,000. If the assessee may be an old person then the most amount of deduction available is Rs.50,000. a private paying insurance premium for fogeys is additionally allowed a deduction for a maximum amount of Rs.25,000. just in case parents are senior citizens, then the allowable deduction would be Rs.50,000. allow us to understand the provisions of this section readily within the tabular format as narrated below:

ParticularsDetails of Deductions AvailableTotal Deduction
Premium paid for self, spouse, or

 

dependent children

The taxpayer is allowed to avail of a tax deduction of Rs. 25,000.Rs. 25,000
Premium paid for self, spouse, or

 

dependent children and parents for

For the taxpayer, spouse, and children, a maximum deduction of Rs.25,000 can be availed.

 

Additionally, Rs.25,000 will be allowed for parents.

Rs. 50,000
Premium paid for self, spouse or

 

dependent children and senior citizen

parents for

For the taxpayer, spouse, and children, a maximum deduction of Rs.25,000 can be availed.

 

Additionally, Rs.50,000 will be allowed for parents who are senior citizens.

Rs. 75,000
Premium paid for self (being a senior

 

citizen), spouse or dependent children

and senior citizen parents

For the taxpayer, spouse, and children, a maximum deduction of Rs.50,000 can be availed in case the taxpayer is a senior citizen.

 

Additionally, Rs.50,000 will be allowed for parents who are senior citizens.

Rs. 1,00,000

Features Of Section 80D Deduction

Section 80D Deduction –  Income Tax

  • To say deduction under section 80D, any mode of payment of premium is suitably provided the payment is routed through a bank. However, premium payment in cash isn’t allowable as a deduction under section 80D.
  • The deductible available under Section 80D exceeds the deductible available at INR 1,50,000 under Section 80C
  • An additional deduction of INR 5,000 is accessible on account of expenses for a health check-up. It includes a health check-up of all the dependent members.
  • Deduction under section 80D is obtainable on medical expenditure incurred by an assessee (Individual / HUF) on the health of super senior citizens (above 80 years of age) and senior citizens (between 60 and 79 years of age) provided no amount has been paid to effect or to stay operative insurance on the health of the person. The deduction available for medical expenditure is subject to the general limit of deduction under section 80D.

Benefits Of Health Insurance Under Section 80D

An insurance policy may be a shield that protects the taxpayer and family from any loss at the time of hospitalization during a medical emergency. The insurer bears the treatment cost and ensures that the assessee avails of the simplest medical assistance. the advantages of insurance are listed below:

Cashless Hospitalization

An insurance policy offers the cashless hospitalization facility at various multi-specialty hospitals nationwide, which offers individual cashless treatment. These impaneled hospitals are mentioned as network hospitals of the insurance firm.

Ambulance Charges

The ambulance expenses incurred just in case the assessee comes across an unfortunate event sort of a medical emergency are covered by an insurance policy. Generally, these policies cover the whole or a share of the ambulance expense.

Domiciliary Expenses

Apart from the treatment, the assessee may sometimes be asked to avail of a domiciliary treatment like physiotherapy treatment. The insurance policy also covers the price incurred for domiciliary treatments, subject to the policy norms.

Pre-Existing Disease

An insurance policy also provides coverage for certain pre-existing conditions. It also implies that the policy additionally covers expenses incurred for the treatment of a disease that existed before buying the policy. A waiting period of two to 4 years could also be applicable just in case the assessee is affected by pre-existing diseases.

Pre And Post Hospitalization

Apart from hospitalization and ambulance expenses, several other expenses occur when an individual comes across a medical emergency. An insurance policy takes care of those expenses. It covers both pre and post-hospitalization expenses for a particular period of your time. This duration is mentioned within the policy wordings.

Permissible Deductions

Under Section 80D of the tax Act, a private can claim a deduction for the subsequent medical expenses incurred during the financial year:

  1. Medical premium paid by the taxpayer through any mode of payment aside from cash.
  2. Expenses incurred under any Central Government health schemes.
  3. Sum paid on account of preventive health checkups.
  4. Medical expenses incurred for the health of a senior or super grownup who could be a dependant member belonging to the family of the taxpayer.