2- Section 80D of the Income Tax Act – Everything You Need to Know

Health insurance is without a doubt beneficial. Health Insurance not only secures your savings during a medical emergency but also gives you peace of mind. When an unforeseen medical emergency arises, it will allow you to get the required medical treatment without having to pay for it out of your pocket or savings.

One of the major advantages of health insurance is the tax benefit. Individuals who buy health insurance policies can avail of tax benefits under Sec.80D of the Income tax act.

What is Section 80D in Health Insurance?

Section 80D of the Income Tax Act, enacted in 1961, is a provision that allows taxpayers to claim deductions on their taxable income for amounts paid as medical insurance premiums. This includes premiums paid towards health insurance policies for oneself, one’s spouse, dependent children, and parents. Whether you’re investing in a basic plan, a top-up plan, or a critical illness plan, 80D Limit ensures that you reap financial benefits in terms of tax savings.

What should you know about Section 80D of the Income Tax Act?

Section 80D of the Income Tax Act allows any individual or Hindu Undivided Family (HUF) to claim a deduction on health insurance premiums paid from their total income chargeable to tax. This 80d deduction is also available for top-up plans and critical illness plans.

Apart from availing 80d deduction on purchasing a health insurance plan for yourself, you can also avail of 80 d exemptions on purchasing a health insurance plan for your spouse, dependent children or parents.

In addition to the already mentioned tax advantages, it’s essential to understand the medical insurance tax benefit provided under Section 80D of the Income Tax Act. This section is specifically designed to provide relief to individuals who pay premiums towards their health insurance plans. Medical insurance comes under which section is a common question; the answer is clearly Section 80D. This section helps reduce taxable income, allowing you to claim deductions for premiums paid for medical insurance policies for yourself, your spouse, children, and parents.

When we talk about medical insurance premium 80D, it refers to the amount you can claim as a tax deduction under this section. The 80D medical insurance limit varies depending on the age of the insured. For individuals below 60 years, the maximum deduction is ₹25,000; for senior citizens, this amount increases to ₹50,000, offering a significant tax advantage.

For those seeking medical insurance tax exemption, Section 80D is the key provision that ensures deductions on premiums paid. If you’re wondering about medical insurance, under which section can you claim such exemptions? Section 80D is the correct reference. It’s also worth noting that taxpayers can avail of a medical insurance exemption in income tax through this section, ensuring they get the most out of their health insurance investments. By fully utilizing the 80D medical insurance limit, taxpayers can save significantly on their taxes while protecting their health.

Eligibility Criteria and Deductions for Section 80D

Individual Policies
If you pay for health insurance policies for yourself, your spouse, and your dependent children, you can claim a deduction of up to ₹25,000 per financial year. If any of the insured members is a senior citizen, the deduction limit goes up to ₹50,000.

Family Policies
In addition to the aforementioned deductions, if you also pay premiums for a policy covering your parents, further deductions can be claimed. If your parents are below 60 years, you can claim an additional ₹25,000. If they are senior citizens, the deduction goes up to ₹50,000. This means if both you and your parents are senior citizens, the 80D limit can extend to ₹1,00,000 in a financial year.

What are the deductions eligible under Section 80D?

Individuals or HUFs can claim deductions under Section 80D for the following payments:

●A health insurance premium paid for self, spouse, dependent children or parents in any mode other than cash
●Money spent on preventive health check-up upto a maximum of Rs.5,000
●Medical expenses incurred to treat a Resident senior citizen person (aged 60 years or above) who does not have any health insurance plans
●Payment made by individual, spouse and dependent children to the Central Government health scheme or any other scheme as notified by the government other than by cash mode

What is Preventive Health Checkup?

In 2013-14, the government implemented a preventive health checkup deduction to encourage citizens to be more health-conscious. The goal of preventive health checkups is to detect any illness and minimize risk factors as early as possible via regular health checkups.

You can avail of a maximum deduction of Rs.5,000 for the amount paid towards preventive health checkups under Section 80d of Income Tax Act. This deduction will be applicable only if your deductions are within the health insurance 80d deduction limit.

You can make payments for preventive health check-ups in cash and still avail of income tax deductions.

Aggregate deduction for preventive health checkups of self, spouse, dependent children and parents cannot exceed Rs.5,000.

Overview of deductions available under Section 80D

The table below depicts the 80d deduction limit currently available to an individual taxpayer under different scenarios: