One such crucial deduction is under Section 80D, specifically designed for medical insurance premiums. In this blog post, we unravel the details of Section 80D, exploring who is eligible, the purposes for which deductions are allowed, and the quantum of deductions permitted.
Section 80D provides deductions to individuals, Hindu Undivided Families (HUFs), and senior citizens. For individuals, deductions are allowed for amounts paid to ensure the health of the assessee, family members, and parents. HUFs can claim deductions for ensuring the health of any family member. Senior citizens have the option to claim deductions for medical expenditures incurred, excluding payments made for health insurance.
Family means the spouse and the dependent children of the assessee.
(i) The whole of the amount paid to the effect or to keep in force insurance on the health of the assessee or his spouse and dependent children
(ii) Any contribution made to the Central Government Health Scheme (CGHS).
as does not exceed aggregate INR 25000.
However, for preventive health check-ups of the assessee or his family or his parent or parents, the maximum amount allowed shall be limited to INR 5000 and such amount subject to a maximum limit of INR shall be the overall ceiling of INR 25000 given in the aforementioned conditions.
Additional deduction of INR 25000: where the sum specified in clause(1)(a) or (b) is paid to effect or keep in force an insurance on the health of any person specified therein and who is a senior citizen, an additional deduction of INR 25000 shall be allowed. In other words, the deduction shall be INR 50000 instead of INR 25000.
Additional deduction of INR 25000: Where the sum specified in clause (2) above is paid to effect or keep in force an insurance on the health of any person specified therein, and who is a senior citizen, an additional deduction of INR 25000 shall be allowed. In other words, the deduction shall be INR 50000 instead of INR 25000.
The individual may claim the following deduction instead of the deduction available under clause (1) above:
However, the following two conditions must be satisfied to claim a deduction of the amount referred to above which is as under:
Taxcellent helps you to file Income Tax Return in Delhi and assists you in claiming deductions along with tax advisory.
We have launched a range of Chartered Accountants Services for families along with a complete income tax filing product suite covering ITR-1 to ITR-7. With the launch of our families division, we aim to help millions of Indians with financial literacy, compliance and investment.Enquiry Now