Section 80D: Everything You Need to About Income Tax Deduction for Medical Expenditure
PNB MetLife 08-07-2020 04:10:50 PM
Health and wealth are two of the most important components of our lives. Any kind of anomaly in the former can take a toll on the latter. As a result, when it comes to healthcare, the monetary aspect takes a backseat even though medical inflation is at its peak in India. However, one of the best ways to get health protection without worrying much about the finances and budget is by purchasing health insurance. Apart from the comprehensive financial safeguard from health emergencies, these health insurance plans also provide an added incentive of tax deduction under Section 80D of the Income Tax Act 1961. Read More
This tax benefit is provided by the Government to ensure that people opt for health insurance as the Government cannot provide affordable healthcare. So, it is imperative on our part to know more about the option so that we can take advantage of this opportunity.
Applicability of Section 80D
Every taxpayer be it an individual or a Hindu Undivided Family (HUF) can avail this opportunity and claim a deduction through the premiums paid for the medical insurance policy. This policy is not just limited to the taxpaying individual but also applicable for the family members – your spouse, dependent children and parents, which means that the premiums paid in a policy that covers all your family members will also be included in the deductions under Section 80D. However, what makes it more lucrative is that the deduction is over and above limit stipulated under Section 80C of the Income Tax Act, 1961.
Tax Deductions Available for Health Insurance under Section 80D
The amount of deduction on health insurance premium paid ranges from ₹25,000 to a maximum of ₹1,00,000 deduction eligible if Self (Senior Citizen) and family includes senior Citizen depending on the age of the insured persons under this policy. This can be explained in 4 cases:
When the policyholder, who is under the age of 60, has opted only for self, spouse and children, the limit of deduction is fixed at only ₹25,000.
However, when the policyholder is above the age of 60 and has opted only for self, spouse and children, the limit is extended to ₹50,000.
In this case, the policyholder, who is below 60, has opted for the health insurance parents in addition to that of self, spouse and children. Here the limit for the extended to ₹50,000 if both the parents are also under the age of 60.
Here, both the policyholder, who is above 60, has opted for an insurance policy that covers the parents in addition to that of self, spouse and children. So, here the limit is extended to ₹100,000, which has the component of ₹50,000 for parents who are also 60+ in age.
Expenditure on Preventive Health Check-up
There is another option of preventive health check-up for self, spouse, dependent children or parents irrespective of the age that can be availed by taxpayers, but the limit is only up to ₹5,000, which is within the limit of ₹25000 and ₹50,000 of the health insurance premium paid.
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.
Mera Mediclaim Plan is an Non-Linked, Non Participating, Combi Insurance Plan (UIN: 117Y102V01). It is advised to familiarize yourselves with the policy benefits and policy service structure of the ‘Mera Mediclaim Plan’ before deciding to purchase the policy. Please read the sales brochure carefully before concluding any sale. This product is jointly offered by 'PNB MetLife India Insurance Company Limited' and 'Religare Health Insurance Company Limited'. PNB MetLife is lead insurer for this product. The risks of this ‘Mera Mediclaim Plan’ are distinct and are assumed / accepted by respective insurance companies as per their underwriting guidelines. The liability to settle the claim vests with respective insurers, i.e., for health insurance benefits 'Religare Health Insurance Company Limited' and for life insurance benefits 'PNB MetLife India Insurance Company Limited'. The policyholders of the ‘Mera Mediclaim Plan' are eligible to continue with either part of the policy, discontinuing the other during the policy term. Goods and Service Tax (GST) shall be levied as per the prevailing tax laws which are subject to change from time. Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details. Cash payment is not eligible for tax benefit under Sec 80D of Income Tax Act, 1961.
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