Health is the most crucial element in living a happy life. The government of India has recognized the deteriorating health conditions, and to improve them, provide deductions under section 80D of the Income Tax Act, 1961. The deduction is allowed for expenses incurred towards medical insurance like critical illness policy, health checkups, and other medical expenses.
Under this section, you can claim an Income Tax deduction up to Rs. 60,000.
Eligibility Criteria
You can claim deduction under section 80D of the Income Tax Act, 1961 if you paid a medical insurance premium taken for:
- Yourself
- Your spouse
- Parents
- Your children (who are dependent on you)
Types of expenses eligible for deduction
If you have paid for any of these expenses you can claim a deduction under section 80D of Income Tax Act:
A) Deduction on the premium paid under a health or medical insurance plan for family
If you have paid a premium under a health policy for yourself or any of your family members, you can claim a deduction under section 80D as medical or health insurance tax benefits. The amount of deduction that can be claimed is up to Rs. 25,000 for the assessment year 2019-20.
B) Deduction on the premium paid under a health or medical insurance for parents
If you have paid a premium under a health or medical insurance for parents, who may or may not be dependent on you, you can claim a deduction under section 80D. The amount of deduction that you can claim in this case is Rs. 30,000 for the assessment year 2017-18.
C) Deduction on expenses incurred towards preventive health checkups
You can claim a deduction up to Rs. 5,000 if you have incurred expenses towards preventive health checkups for yourself, your family, and your parents.
D) Deduction on medical expenses paid for super senior citizens having no medical insurance
If you have paid for medical expenses of a super senior citizen (80 years of age or above) who don’t have any medical or health insurance, you can claim a deduction under section 80D. The amount of deduction that you can claim in this case is up to Rs. 30,000.
E) Other deductions
- If you are of age 60 years or above and pay a premium for medical insurance of parents, who are senior citizens too, a deduction of Rs. 60,000 is allowed under section 80D as medical insurance tax benefits.
- If you are of age 60 years or above and have paid for preventive health checkup of your super senior citizen parents, a deduction of Rs. 65,000 is allowed under section 80D.
After the life insurance, the most vital plan you can add to your portfolio is a Health Insurance Policy. Edelweiss Tokio Life provides you with the best critical illness policies having the best critical illness cover to protect you from any health issue you can face. Critical illness insurance tax deductibles are offered under section 80D, 80C and 10(10D) and can save a considerable amount of tax too.
