Section 80D Deduction Guide

As a taxpayer, if you have incurred expenses towards medical insurance, preventive health checkup and other medical expenses, then you can claim tax deductions u/s 80D. You can get a tax deduction up to Rs. 60,000 under this section.


Eligibility:


You can avail the tax deduction under section 80D if you have paid any premium on mediclaim policy taken for:

1.

Yourself

2.

Your spouse

3.

Dependent children

4.

Your parents (parents need not be dependent on you)

You can also claim tax deduction maximum up to Rs. 5,000 for your expenses on preventive health checkup within the overall limit of Rs. 60,000 (Rs. 40,000/- for A.Y. 2015-16).


Types of deduction:


There are three different types of deductions that you can claim u/s 80D. They are:

1.

Tax deduction on health insurance premium paid for you & your family

2.

Tax deduction on health insurance premium paid for your parents

3.

Tax deduction on preventive health checkup expenses


Let’s understand each category in detail:



I) Tax deduction on health insurance premium paid for your family:


If you pay premium for health insurance taken for you and your family then you can claim tax deduction up to Rs. 25,000 for A.Y. 2016-17 (Rs. 15,000 for A.Y. 2015-16).

If you are a senior citizen, then you can claim deduction up to Rs. 30,000 for A.Y. 2016-17 (Rs. 20,000 for A.Y. 2015-16).


II) Tax deduction on health insurance premium paid for your parents:


In addition to the above mentioned deduction, you can also claim tax deduction if you pay premium for health insurance for your parents.

You can claim deduction up to Rs. 25,000 for A.Y. 2016-17 (Rs. 15,000 for A.Y. 2015-16).

However, if your parents are senior citizens, you can claim deduction up to Rs. 30,000 for A.Y. 2016-17 (Rs. 20,000 for A.Y. 2015-16).


III) Tax deduction on preventive health check-up expenses:


There is another tax benefit available u/s 80D which can be claimed up to Rs. 5,000 if you have incurred expenses on health check-up of your family, parents and yourself.

However, this deduction of Rs. 5000 is not in addition to the maximum deduction of Rs. 60,000/ Rs. 40,000 stated above but is included in the above deduction.

It is important to note that Rs. 5000 is the maximum total deduction allowed for preventive health check-up. This deduction cannot be claimed per person basis but as an aggregate. So if a person pays any amount on preventive health check-up (for himself + spouse & dependent children + parents), the gross total deduction allowed would not be more than Rs. 5000.

Note:

If you or any member of your family or either of your parents is a super senior citizen (i.e. 80 years or above in age) but is not covered by any health insurance and if you took care of their medical expenses then you can claim tax deduction up to Rs. 30,000.

The tax deductions discussed above have been summarized in the table given below:


Deductions under Section 80D

Note:

To claim deduction under this section health insurance premium should always be paid by any mode other than cash but medical or preventive health checkup expenses can be paid in cash.

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