Understanding Tax Deductions on Preventive Medical Expenses

Hello and welcome to Part 18 of the income tax education series brought to you by H&R Block, the global leader in filing income tax returns. Today we will understand whether preventive medical expenses can be a part of tax deductions.

The answer is Yes. You can now claim preventive expenses also as a deduction from taxable income. These preventive medical expenses are eligible for a tax deduction u/s 80D. The amount of expenses that can be claimed as a deduction is restricted to Rs. 5,000 and is a part of the total amount that you claim as a deduction u/s 80D. E.g. Ravi, a software engineer invests Rs. 15,000 as premium for health insurance policy and also spends Rs. 3000 in preventive health check-ups like blood tests and X-ray scans. Ravi can actually claim the entire amount for Rs. 15,000 and Rs. 3,000 as a deduction from his taxable income u/s 80D. This is because now preventive health check-ups also form a part of the health insurance premium deduction and can be claimed up to Rs. 5,000 spent. Anything beyond Rs. 5,000 will not be allowed as a deduction.

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