What is Section 80D?

Section 80D allows for the deduction for money spent on maintaining your health and health insurance, and assumes great significance in your tax planning and personal finance.

What deductions are allowed u/s 80D?

  1. Money spent as Premium for Health Insurance Policy
  2. Money Spent on Healthcare of family members including parents

Money spent on maintaining a health insurance policy can be claimed under section 80D. The amount is limited by the age of the insured under the plan. These restrictions apply to people (insured under the policy) aged below 80 years :

Insured Deduction Amt. (`)
  Age Below 60 yrs. Age Above 60 yrs.
Self, Spouse and Children 25,000 50,000
Parents 25,000 50,000
Max Deduction 50,000 1,00,000
Opt: Preventive Healthcare* 5,000 5,000

Table 1: Medical Deduction u/s 80D

In the case of people over 80 years of age, health insurance is usually not available. Thus, the deduction of upto `50,000 is allowed even if money is spent on their treatment rather than on health insurance premium.

Therefore, a maximum deduction that you can claim under this section is upto `55,000, assuming:

  1. Your family falls in ‘below-60 age group’ (max deduction of 25,000),
  2. Your parents are aged above 60 years (max deduction of  50,000) and

*Preventive Healthcare Expenses: If your total insurance premium paid is less than the maximum allowed limits for any of the categories, then up to `5000 can be claimed for a preventive health check of your family in the financial year, within the said limits.

✅ What investment comes under section 80D?

Premium paid on health insurance and expense incurred towards preventive health checkup can be claimed as deduction under section 80D.

✅ Who is eligible for a tax deduction under section 80D of Income Tax Act,1961?

Individual and HUF (Hindu Undivided Family) can claim deduction from taxable income under section 80D. A person can claim deduction for health insurance premium & expense incurred towards preventive health checkup for self, spouse, dependent children and parents subject to the terms and conditions mentioned in the section 80D of the Income Tax Act, 1961.

✅ What is the limit of deduction under section 80D of Income Tax Act, 1961?

For person aged below 60 years, limit for deduction under section 80D is upto `25,000. The limit of `25,000 includes `5,000 on preventive health checkup. If the age of insured is above 60 years, limit for deduction increases upto `50,000.

 

Case I – Self below 60 years & parents below 60 years

Case II – Self below 60 years & parents above 60 years

Case III – Self above 60 years & parents above 60 years

Deduction* for self, spouse and dependent children

` 25,000

` 25,000

` 50,000

Deduction* for parents

` 25,000

` 50,000

` 50,000

Maximum deduction

` 50,000

`75,000

` 100,000

*Deduction = health insurance premium and preventive health checkup expense

✅ What are the exclusions under section 80D?

Deduction under section 80D cannot be claimed

  1. i.If payment for health insurance premium is made by cash. Payment for medical expense can be made by cash.
  2. ii.If payment is made on behalf of working children, siblings, grandparents or any other relative
  3. iii.Group health insurance premium made by company on behalf of employee

COMP/DOC/Jan/2020/241/3145

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Unlike traditional products, Unit Linked insurance products are subject to market risk, which affect the Net Asset Values & the customer shall be responsible for his/her decision. The names of the Company, Product names or fund options do not indicate their quality or future guidance on returns. Funds do not offer guaranteed or assured returns.

Tax benefits under the policy are subject to conditions under Section 80D, 10(10D) and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. The tax laws are subject to amendments from time to time. Please consult your tax advisor for details.

ICICI Pru iProtect Smart (UIN: 105N151V03)

ADVT No - W/II/1088/2016-17

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