What is the benefits of Income Tax Section 80D for Medical Insurance Policy With Automated Income Tax Master of Form 16 Part B (which can prepare at a time 100 employees Form 16 Part B) for the F.Y. 2019-20 in a new format.

Section 80D of Income Tax allows you to claim income tax benefits. Let’s try to check out detail about Section 80D and Health Insurance.

Health-related problems or medical emergencies can arise anytime. If you are not prepared to withstand a health emergency, you will need to spend money from your pocket. Recently my friend was diagnosed with skin cancer. He was not covered with any health insurance. He spent hefty 2.3 Lakh from his pocket. His entire saving was spent on the treatment.

The learning from this example is one should always buy an adequate health insurance policy, which can help them in a health emergency. Our Government also encourages people to buy sufficient medical insurance policy. You can get tax benefits under Section 80 D for the premium paid for the health insurance policy.

What is Section 80 D?

Section 80D of Income-tax provide 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?

  • Self
  • Spouse
  • Dependent Children (below 18 Years)
  • Parents

In addition to health insurance payment, you can also avail tax benefits on the preventive health checkup. This section also provides detail about the special deduction for senior citizens.

Section 80 D clearly specify 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 Individual under section 80D are given below.

  1. One can claim maximum Rs.25000 for the premium paid on the health insurance for self, spouse and children (under the age of 18 years).
  2. You can claim similar amount Rs.25000 for the premium amount paid for your parents father and mother.
  3. If your parents 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).
  4. In addition to 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 CoveredExemption LimitTotal
Self & FamilyRs.25000Rs.25000
Self & Family + ParentsRs.25000 + Rs.25000Rs.50000
Self & Family + Sr. Citizen ParentsRs.25000 + Rs.50000Rs.75000

Download and prepare At a Time 100 Employees  AutomatedIncome Tax Form 16 Part B (Modified Format) [This Excel Utility Prepare At a time 100 Employees Form 16 Part B in New Format for A.Y. 2020-21]

 The main feature of this Excel Utility:-

1)   Prepare At time 100 Employees  Excel Based  Form 16 Part A&B ( Modified Format of Form 16 Part B Vide CBDT Notification No.36/2019 Dated 12/04/2019 ]

2)   All the Amended Income Tax Section have in this utility as per Budget 2019

3)   You can print individual Form 16 Part Part B

4)   Most easy to install just like an Excel File

5)   Easy to Fill all column

6)   Automatic Convert the Amount to the In-Words

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