Ankita Khetan | Feb 16, 2018 |
Section 80D: Income Tax Deduction for AY 2017-18 & AY 18-19
Having a health insurance policy does not only help cover your medical expenses, it also gives you relief from tax liabilities. Section 80D of the Income Tax Act 1961 allows taxpayers to claim deductions for health insurance premiums paid for insuring self, spouse, dependent children and parents. The maximum tax deduction that can be claimed under this section is Rs. 25,000. If any of the persons specified is a senior citizen, the maximum deduction amount is Rs. 30,000.
| Insured | Exemption List |
| Self & family | 25,000 |
| Self & family + Parents | 25,000 + 25,000 = 50,000 |
| Self & family + Parents (senior citizens) | 25,000 + 30,000 = 55,000 |
| Self (senior citizen) & family + Parents (senior citizens) | 30,000 + 30,000 = 60,000 |
The provisions under section 80D are:
Any mode of payment (debit cards, credit cards, electronic transfer, etc.) is acceptable for claiming deduction under Section 80D, except premium amount remitted by cash. Payment for preventive health check-up, however, can be made in cash.
Deductions can only be claimed for premiums paid for dependent children. Premium paid for earning kids is excluded in this section.
You can claim an additional deduction of Rs. 5,000 for expenses related to health check-ups. This limit includes health check-up expense of all the dependents in the family.
In the case of super seniors i.e. people over the age of 80, you can claim tax deduction of up to Rs. 30,000 under Section 80D for the money spent on medical treatment rather than health insurance premium.
Section 80C and 80D
Often times, people confuse Section 80C with Section 80D. Under Section 80C, deductions can be claimed up to Rs. 1,50,000, whereas under Section 80D, deductions can be claimed up to Rs. 65,000.[Deduction upto Rs. 100,000 can be claimed under section 80D from AY 19-20 & onwards] Tax benefits can be availed on life insurance premium payment, tax saving fixed deposits, PPF, ELSS, etc. under Section 80C of the Income Tax Act. Section 80D governs the deductions on premium for health insurance policy.
If you have any queries concerning the tax deductions under Section 80D of the Income Tax Act, drop us a message in the comments section below.
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