- 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
Income Tax Deductions under Section 80D of Income Tax Act, 1961
- DetailsWritten by PolicyBazaar -
- Hits : 10425 -
Modified 23 January 2017
Taxes are certain in your life, especially the Income Tax. While the Income Tax Act of India has classified taxes into multiple sections, the section 80D allows you to save thousands annually on your health insurance premium. If you have a health insurance policy that covers medical expenses of your family member (spouse and children) and you, you can save up to Rs. 25,000 per annum. Likewise, the premium paid for your health coverage availed by your parent also enables you to save more, i.e. up to Rs. 30,000.
This article will help you to know all legitimate facts related to the Section 80D of Income Tax Act, 1961, which will further help you to avail tax deductions for the health insurance premium. If you pay the health insurance premium for your spouse, children, and parents, then are eligible to avail the tax deduction under section 80D of Income Tax Act, 1961.
Considering the skyrocketing medical expenses, the Section 80D norms are often revised of the Income Tax department. Before mentioning the ways to avail the tax deduction, let us explore some important benefits (in terms of coverage) offered by a health insurance policy:
Benefits of Health Insurance under Section 80D of Income Tax Act
A health insurance policy is a shield that protects you and your family from the financial loss at the time of hospitalization during a medical emergency. It’s your insurer that bears the treatment cost and ensures that you avail the best medical assistance. Read below the benefits of health insurance:
|You may like to Read: Section 80C Limit for AY 2016-17|
A health insurance policy offers the cashless facility to you at various multi specialty hospitals nationwide, which offer you cashless treatment. These empanelled hospitals referred to as network hospitals of the insurance company.
The ambulance expenses incurred in case you come across an unfortunate event like a medical emergency are covered by your health insurance policy. Generally, these policies cover the complete or a share of the ambulance expense.
Apart from the treatment, you sometimes are asked to avail the domiciliary treatment like the ayurveda treatment, any special therapy, or unani treatment. Your health insurance policy also covers the cost incurred for such a domiciliary treatment subject to the policy norms.
Pre existing Disease
A health insurance policy also provides coverage for certain pre-existing conditions. It also means that the policy additionally covers expenses incurred for the treatment of a disease that existed before buying the policy. A waiting period of 2 to 4 years is applicable in such a case.
Pre and Post Hospitalization
Apart from certain hospitalization and ambulance expenses, there are several other expenses that occur when you come across a medical emergency. A health insurance policy takes care of these expenses. It covers both pre and post hospitalization expenses for a certain period of time. This duration is clearly mentioned in the policy wordings.
What is Tax Deduction?
Taxes are amongst the fundamental elements of India. They constitute a major part of the government income that is used to provide numerous facilities to Indian citizens. According to the Income Tax Act of India, if your income is above a certain amount, then you are required to pay the income tax. As these taxes affect your pocket and considering this fact, government offers provisions for the tax deduction. You can claim the tax deduction for several expenditures, such as your tuition fees, charitable contributions and medical expenses under different Income Tax sections.
According to Section 80D of Income Tax Act, you can avail tax deduction, based on the premium paid for a health insurance policy. You are eligible for the tax deduction whether the premium is paid for a health insurance policy that belongs to you, your spouse, children, or dependent parents. You can also claim the tax deduction for the cost incurred for preventive health checkups for your family.
|You may also like to Read: Section 80D ITA|
Under Section 80D of Income Tax Act, an individual can the claim deduction for the following medical expenses during the financial year:
- Medical insurance premium paid by you through any mode of payment other than cash.
- Expenses borne by you under any Central Government health schemes.
- Sum paid by you on account of preventive health checkups.
- Medical expenses incurred for the health of a super senior citizen.
Invest in a health insurance policy that offers you comprehensive coverage at an affordable premium and avail tax benefit under section 80 of ITA.
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
- An Insight into Section 80D Deductions for Health Insurance Premium and Checkups
- 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
- Best Health Insurance Policies in India for 2017-2018
Date: 23 November 2017
- Never Ride Your Bike with a Lapsed Insurance Plan: Here's why
Date: 23 November 2017
- All about Senior Citizen Saving Scheme Plans
Date: 23 November 2017
- Here’s How You Can Claim Third Party Insurance
Date: 22 November 2017
- How to Avoid Hefty Medical Bills in a Travel Emergency Abroad
Date: 20 November 2017
- Best 5 LIC Policies To Invest in 2017
Views : 1089174
- How to Check LIC Policy Status, Details, Statement via Online/SMS/Call
Views : 1079235
- A Quick Guide To Post Office Monthly Income Scheme
Views : 417055
- Best Term Insurance Plans in India with Claim Settlement Ratio
Views : 411012
- Best Health Insurance Plans in India
Views : 353123