What is Section 80 D?
Section 80D of Income-tax provides tax-related benefits to individual & HUF for the premium payment (other than cash) of health insurance. This benefit is available for the premium payment on the policy of Individual, family member – wife & dependent children.
For better understanding, here is a list of people who will come under the benefits list?
- Dependent Children (below 18 Years)
In addition to health insurance payment, you can also avail of tax benefits on the preventive health checkup. This section also provides detail about the special deduction for senior citizens.
Section 80 D clearly specifies that tax benefit will be extended only if health insurance payment is made via online banking, a cheque, demand draft, debit card or credit card. One can not claim tax benefit for the cash installment of premium or cash payment for a preventive health checkup.
How many deductions available under Section 80D?
The deduction available to the Individual under section 80D is given below.
- One can claim a maximum Rs.25000 for the premium paid on the health insurance for self, spouse and children (under the age of 18 years).
- You can claim a similar amount Rs.25000 for the premium amount paid for your parent’s father and mother.
- If your parent’s age is above 60 years (senior citizen) the limit will be increased to Rs.30,000. This new enhancement is introduced in Financial Year 2018-19. (Announced n Budget 2018).
- In addition to the above, you can also claim tax benefits for a yearly health checkup. Section 80D also allows a deduction for a preventive health checkup. The deduction amount for this is Rs.5000. This deduction amount is in addition to deduction available on the premium payment.
|Person Covered||Exemption Limit||Total|
|Self & Family||Rs.25000||Rs.25000|
|Self & Family + Parents||Rs.25000 + Rs.25000||Rs.50000|
|Self & Family + Sr. Citizen Parents||Rs.25000 + Rs.50000||Rs.75000|
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