Fight Against Coronavirus   1. Wash Your Hands Frequently   2. Maintain Social Distancing   3. Avoid Touching Eyes, Nose and Mouth   4. Practice Respiratory Hygiene   5. Stay Informed and Follow Advice given by Your Healthcare Provider   6. If You have Fever, Cough and Difficulty Breathing, seek Medical Care Early             Dial National Helpline Number +91-11-23978046 or 1075
  1. Home
  2. 12 Smart Things to Know About Section 80D of Income Tax Act

12 Smart Things to Know About Section 80D of Income Tax Act
By Anupama Deshpande | May 24, 2018



12 Smart Things to Know About Section 80D of Income Tax Act

  1. Section 80D of IT Act allows a tax deduction for medical insurance premium paid for self, spouse, dependent children and parents.
  2. Individual and Hindu Undivided Family (HUF) assessees can claim a deduction under Section 80D.
  3. In case of a non-senior citizen assessee (less than 60 years of age), a deduction of up to Rs.25,000 per year is allowed towards the premium. In case the assessee is a senior citizen (60 years and above), the deduction allowed is Rs.50,000.
  4. In addition to above deduction, a deduction of Rs.25,000 per year is allowed for premium for medical insurance policy for parents (father, mother or both). If parents are senior citizens (60 years and above) then the amount is Rs.50,000. This is allowed irrespective of whether parents are dependent or not.

    5. Suggested reading Why Select Debt Fund over Bank Fixed Deposit : 10 reasons

  5. You can claim a tax deduction on the expense you incur on a preventive health check up. A deduction of Rs.5,000 is allowed for payment of preventive health check-ups of any of the individual assessee, spouse, dependent children or parents.
  6. For super senior citizens (more than 80 year old), the deduction is computed on the medial expenses along with the medical insurance premium paid.
  7. It is mandatory to pay medical insurance premium in any mode other than by cash i.e. through cheque, , debit card, credit card, net banking or any other acceptable mode in order to claim deduction under Section 80D.
  8. In case, you pay medical insurance premium in cash then you will not be eligible to claim a deduction under Section 80D.
  9. However, the payment can be done in any mode, including cash for preventive health check-ups.

    10. Suggested reading Is it beneficial to invest in bank fixed deposit (FD)

  10. If children are not dependent then the parents cannot claim deduction for their medical health insurance premium as well as for preventive health check-ups.
  11. Benefits of section 80D deduction are not available to group health insurance premium paid by the employer.
  12. The benefits available under section 80D are in addition to those available under section 80C (Maximum of Rs1.50 lakhs in a financial year).

Suggested reading How to Link Aadhaar to Insurance Policy?

Explanation of Total Eligible Claim Under Section 80D of Income Tax Act

Self, spouse, dependent childrenParentsPreventive Health Check-upsTotal Deduction
Rs 25,000 (non-senior citizen assessee)Medical insurance policy is not takenRs. 5,000Rs.30,000
Rs 25,000 (non-senior citizen assessee)Rs.25,000(non-senior citizen parent)Rs. 5,000Rs.55,000
Rs 25,000 (non-senior citizen assessee)Rs.50,000(senior citizen parent)Rs. 5,000Rs.80,000
Rs 50,000 (senior citizen assessee)Rs.50,000(senior citizen parent)Rs. 5,000Rs.1,05,000
Share This :
About Anupama Deshpande
Anupama is a Co-Founder of CodeForBanks.com. She is an MBA (Finance) and Chartered Financial Analyst (CFA). She also carries a Fellowship degree in Life Insurance Sector and is a Master of Computer Application (MCA). She is an expert in Finance Field with an experience of over 18 years on different managerial positions in finance industry including Stock Market, Depository and Mutual Fund Sectors. Apart from that she has remained for few years in the field of marketing as well. Her suggestions and advice for investments have been very useful to many people.
Her vast interest & expertise in the field of finance have encouraged her to write the articles so that others can also get benefitted out of them. She never loses any opportunity to learn and be creative. She is a valuable asset for CodeForBanks.com & important resource to all those around her.

Popular Posts

ALL INDIA BANKS LIST
A B BANK LIMITED ABN AMRO Bank N V ABU DHABI COMMERCIAL BANK ALLAHABAD BANK
American Express Banking Corp ANDHRA BANK Antwerp Diamond Bank NV AU SMALL FINANCE BANK LIMITED
AXIS BANK B N P PARIBAS BANDHAN BANK LIMITED BANK OF AMERICA
BANK OF BAHARAIN AND KUWAIT BSC BANK OF BARODA BANK OF CEYLON BANK OF INDIA
BANK OF MAHARASHTRA BANK OF TOKYO MITSUBISHI LIMITED BARCLAYS BANK BHARATIYA MAHILA BANK LIMITED
Calyon Bank CANARA BANK CAPITAL SMALL FINANCE BANK LIMITED CATHOLIC SYRIAN BANK LIMITED
CENTRAL BANK OF INDIA CHINATRUST COMMERCIAL BANK LIMITED CITI BANK CITY UNION BANK LIMITED
CORPORATION BANK DBS Bank India Limited DCB BANK LIMITED DENA BANK
DEUSTCHE BANK DHANALAKSHMI BANK EQUITAS SMALL FINANCE BANK LIMITED ESAF SMALL FINANCE BANK LIMITED
EXPORT IMPORT BANK OF INDIA FEDERAL BANK FINCARE SMALL FINANCE BANK LTD HDFC BANK
HSBC BANK HSBC BANK OMAN SAOG ICICI BANK LIMITED IDBI BANK
IDFC First Bank INDIAN BANK INDIAN OVERSEAS BANK INDUSIND BANK
JAMMU AND KASHMIR BANK LIMITED JP MORGAN BANK JSC VTB BANK KARNATAKA BANK LIMITED
KARUR VYSYA BANK KOTAK MAHINDRA BANK LIMITED Krung Thai Bank Public Co. Ltd LAXMI VILAS BANK
MASHREQBANK PSC MIZUHO CORPORATE BANK LIMITED NORTH EAST SMALL FINANCE BANK LIMITED OMAN INTERNATIONAL BANK SAOG
ORIENTAL BANK OF COMMERCE PUNJAB AND SIND BANK PUNJAB NATIONAL BANK SBM BANK MAURITIUS LIMITED
SHINHAN BANK SOCIETE GENERALE SONALI BANK LTD SOUTH INDIAN BANK
STANDARD CHARTERED BANK STATE BANK OF BIKANER AND JAIPUR STATE BANK OF HYDERABAD STATE BANK OF INDIA
STATE BANK OF MYSORE STATE BANK OF PATIALA STATE BANK OF TRAVANCORE SURYODAY SMALL FINANCE BANK
SYNDICATE BANK TAMILNAD MERCANTILE BANK LIMITED THE BANK OF NOVA SCOTIA THE NAINITAL BANK LIMITED
UBS AG UCO Bank Ujjivan Small Finance Bank Limited UNION BANK OF INDIA
UNITED BANK OF INDIA UNITED OVERSEAS BANK LIMITED UTKARSH SMALL FINANCE BANK VIJAYA BANK
Woori Bank YES BANK ZILA SAHAKARI BANK LTD