Deduction on Health Insurance and Medical Expenses Under Section 80D

Deduction on Health Insurance and Medical Expenses Under Section 80D
An Individual or HUF can get tax benefit by claiming deduction on taxable amount under Section 80D of Income Tax Act 1961 for the payments for health insurance policy, medical expenses and preventive health check-up for self, spouse, dependent children and parents. These deductions are available in addition to, Section 24, Section 80C and Section 80E The deductions are allowed for the health insurance of following members of the family. 

Deductions for Self and Family:

  • Taxpayer can save on health insurance for self and family. Here family includes spouse and dependent children. 
  • For self, spouse and dependent children, the allowed deduction is maximum up to Rs. 25,000 per year on health insurance premium. 
  • If the taxpayer is senior citizen, allowed deduction is a maximum amount of Rs.50,000 per year 

Deductions For Parents: 

  • Taxpayer is allowed an additional deduction up to maximum amount of Rs.25,000 per year on health insurance premium paid on behalf of parents. 
  • For a taxpayer, maximum deduction of Rs.50,000 per year is allowed on health insurance premium payments for self, spouse, dependent children and citizen parents. 
  • For taxpayer and parents both are senior citizens, the allowed maximum deduction increases to Rs. 1,00,000. 

Section 80D Limit

A taxpayer, according to Section 80D, can claim deductions on health insurance premiums paid for self or his family and parents as follows:

Persons Covered

Maximum Deduction (Rs.)

Self and Family
25,000
Self and Family along with Parents
25,000 + 25,000 = 50,000
Self and family along with senior citizen parents
25,000 + 50,000 = 75,000
Self (Senior Citizen) along with senior citizen parents
50,000 + 50,000 = 1,00,000

Deduction on Expenses Related to Preventive Health Check-ups

Taxpayer can claim deduction of maximum amount of Rs. 5,000 for preventive health check-up every year. It is inclusive of the check-up expenses of all members in a family, including spouse, kids and parents. 

Medical Treatment of Specified Diseases

Deduction is allowed to taxpayers on expenses on medical treatment of specified diseases as follow:

Persons Covered
Maximum Deduction (Rs.)
Self and Family
40,000
Senior Citizens
60,000
Super Senior Citizens
80,000

Maintenance of Person with Disability (Under Section 80DD)

Expenses on medical treatment, rehabilitation and training can claimed for deduction under Income Tax Act 1961 under section 80DD. The maximum amount of Rs. 75,000 can be claimed for disabled person. For severe disabled person, the maximum limit increases to Rs. 1,25,000.

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