- Rs. 5 Lakh Coverage @ Rs. 12.9/Day
- 7 Lakh+ Happy Customers
- 100%Free Health Check-up
- 10,000+Hospitals for Cashless Treatment
We promise limited calls
An Insight into Section 80D Deductions for Health Insurance Premium and Checkups
- DetailsWritten by PolicyBazaar -
- Hits : 4335 -
Modified 23 January 2017
The Income Tax Act of India has provided us with certain deductions under section 80D, based on the premium paid for the coverage. You cannot exceed this limit of deduction. Let us illustrate an example to help you understand this in a better way:
Mr. Suresh (age 35 years) has made the following payments for health insurance coverage and preventive health checkups during the financial year 2016-2017
Payments Made For
Premium for health insurance for self
Premium for health insurance for his spouse
Premium for health insurance policy for his younger daughter who isdependent on Mr. Suresh
Premium for health insurance policy for his elder daughter who is selfemployed and not dependent on Mr. Suresh
Premium for health insurance policy for his Father who is 68 years old
Premium for health insurance policy for his Mother who is 68 years old
Payment towards preventive health check-up up (for his own check-up and check-up of his wife).
Section 80D: Considering the above expenditure, the tax deduction, in this case, will be as follows:
- Health insurance premium paid for his policy is Rs. 15,000, which is eligible for the deduction.
- Health insurance premium of Rs. 4,000 for his spouse policy is eligible for the deduction.
- Health insurance premium of Rs. 3,000 for his younger daughter’s policy (dependent on him) is eligible for the tax deduction.
|You may like to Read: 80C Deduction for AY 2016-17|
However, the premium of Rs. 5,000 for of his elder daughter’s policy (not dependent on him) is not eligible for the tax deduction.
- Health insurance premium for the policy of his parents of Rs. 36,000 is eligible for the deduction up to Rs. 30, 000.
- Expenses incurred for preventive health checkups are also eligible for the tax deduction, but up to the limit of Rs. 3,000
The total deduction under section 80D of Income Tax Act will be the Rs. 22,000 on account of the following:
Expenses incurred for the premium paid for health insurance for self, his spouse and his dependent daughter and Rs. 30,000 for the premium paid on health insurance policy of his parents.
The tax Deduction based on preventive health checkups will be Rs. 3,000
Total tax deduction under section 80D of Income Tax Act will amount to Rs. 55,000 (Rs. 22,000 + Rs. 30,000 + Rs. 3000).
Tax Saving under Section 80D: Deduction for Preventive Health Checkups
An updated clause under Section 80D of Income Tax Act allows policyholders to avail the tax deduction based on the expenses incurred for Preventive Health Checkups. The Deduction allowed would be up to Rs. 5000 under Section 80D against the payment of preventive health checkups of self or family members, including parents and dependent children.
It is important to note that the maximum amount allowed for deduction is Rs. 5000. So, irrespective of the amount you pay for preventive health checkups of your dependent children, parents, and you, the total deduction permitted to you would be no more than Rs. 5000.
When we plan to buy a health insurance policy, the very first question that hits the mind is, “How much coverage is the ideal?” Read below to fetch your query:
To get this question answered, you’ll need to calculate your medical expenses incurred in the past and consider the expenses that you may incur in the future. You’ll also need to consider any medical facility you or your family may require today or in the future. A health insurance policy will help you to prevent your family from facing financial problems when you come across a medical emergency.
|You may also like to Read: How to Save Tax with Health Insurance?|
Make sure your policy offers all kinds of coverage mandatory for you and your family members. Also, seek a policy that fulfills all your requirements at an affordable premium. You can search it online or take help meet an insurance broker in person to buy the best health insurance policy.
Most Searched Topics
- Top 5 Best Mutual Fund Plans to Invest in India in 2017
- Section 80D Deduction for A.Y 2016-17
- Section 80C Deduction for A.Y 2016-17
- What is Form 16 & How To Download It
- Income Tax Exemptions for Salaried Employees
- Tax Benefits on a Health Insurance Policy
- Section 80D Mediclaim Income Tax Deduction for Individual
- Section 80D of ITA: Deductions for Medical Insurance and Preventive Health Checkups
- How to Check Income Tax Return Status Online?
- Income Tax Planning For Salaried Employees in India
- Income Tax Benefits in FY 2016-17 on Home Loan Interest
- Income Tax Deductions under Section 80D of Income Tax Act, 1961
- Advantages and Disadvantages of the Tax-Saving Fixed Deposits
- How to Pay Income Tax Online in India 2017
- How to Save Tax on Salary?
- Tax Exemption on Health Insurance under Section 80D
- Compute Your Income Tax through the Income Tax Calculator
- Section 80D Tax Deduction For Medical Insurance Premium And Mediclaim Reimbursement Allowance Under Section 10
- How to Save Tax with Health Insurance?
- Know about Mediclaim Deduction for the AY 2016-17 and Plan your Future with us at Policy Bazaar!
- Income Tax Filing For the Freelancers
- How to File Income Tax Return Using Form 16
- Understanding Salaried Income and Its Tax Computation
- Systematic Investment Plan (SIP) - Features, Benefits & Process of SIP
- How to Send Your ITR-V to CPC Bangalore
- How to Check ITR-V Receipt Status?
- How to Make Corrections to TDS Returns?
- eFiling Income Tax
- What is TDS (Tax Deducted at Source)?
- Tax Benefits on Children's School Fees
- How To Save Income Tax on House Rent Allowance
- Income Tax Slabs Rates for Financial Year 2016-17
- Handling Income Tax Notices form IT- Department
- What is the Difference between AY and FY?
- How to file Income Tax Return Online in India?
- Tax Exemption on Insurance Premiums
- Learning to Calculate Income Tax Levied on Salary Income
- How to View Filed TDS Statement on Income Tax Website?
- Best ways to save tax - Income Tax Saving Tips
- Take Home, Net Gross Salary vs CTC
- How to get Income Tax Return Form?
- Let's Talk About Part A and Part B in Form 16
- What is Reliance Tax Saver Plan?
- Advance Tax Payment Guide
- 5 Common Tax-Saving Mistakes and How to Avoid them
- Easy & Simple Steps to Upload TDS Returns Online
- NRI's without Pan: How to Avoid Higher TDS
- Complexity of Income Tax on Taxable Income
- All You Need To Know About From 27C
- TDS Will Not be deducted on Interest Paid to MUDRA
- Calculating Estimated Business Taxes
- Why Should You E-File Your Tax Returns
- Control the Currency with Policy Bazaar: Income Tax Guide For Start-ups
- Missed the Tax Filing Deadline? Here's what you can do about it
- File It Right: How to Avoid Rejection of Your ITR-V
- Tips for Startups while Generating Form 16
- How to Reduce the Burden of Income Tax and Increase Your Take-Home Salary?
- Useful Tips on Tax-Planning in India
- Income Tax Refund - Basics, Process
- Income Tax Deductions under Section 80
- Best Way to Calculate Your HRA (House Rent Allowance)
- Most Read
- Term Insurance with More Than 100 Years of Coverage
Date: 14 November 2017
- All About Pradhan Mantri Suraksha Bima Yojana
Date: 13 November 2017
- Starting a Family? Beware Of Private Health Insurance Waiting Period Pitfalls
Date: 10 November 2017
- 10 Ways to Keep the Family Healthy This Winter
Date: 08 November 2017
- How will Modifications Affect My Car Insurance?
Date: 31 October 2017
- Best 5 LIC Policies To Invest in 2017
Views : 1080604
- How to Check LIC Policy Status, Details, Statement via Online/SMS/Call
Views : 1071867
- A Quick Guide To Post Office Monthly Income Scheme
Views : 413120
- Best Term Insurance Plans in India with Claim Settlement Ratio
Views : 407577
- Best Health Insurance Plans in India
Views : 349883