Section 80 D Related to Health Insurance of Income Tax Act, 1961.
The Government of India has made provisions for individuals and members of HUF (Hindu undivided Family) in section 80 D for a deduction on the premium paid towards medical & health insurance coverage. Dependent parents, self, spouse, and children are covered. An assessee can claim deduction up to Rs 25000/- in normal case and if his age is more than 60 years then he can claim Rs 50,000/-. additional deduction for parents also available as same above.
Q: What is Section 80 D?
Section 80 D allows a deduction from our Gross total income, when a payment has been made for a health insurance plan by a Individual or HUF to cover yourself, Spouse, dependent children’s and parents.
Q: Is deduction U/s 80 D available in addition to the deduction of Rs 1.50 Lakh?
Yes, it is over and above of Rs 1.50 Lakh claimed under section 80C/CCC/CCD.
Q: What is the type of payment covered under section 80 D?
Medical insurance premium (including preventive health check-up) and Medical expenditure.
Q: Who can claim deduction u/s 80 D?
Deduction under section 80 D is Available to an Individual and HUF (Hindu undivided Family) Only apart from above no one can claim deduction u/s 80 D.
Q: What is the amount of deduction available to Individual under section 80 D?
An individual can claim a deduction for medical insurance premium of up to Rs 25,000 for his family and additional benefits of Rs 25,000 when age of parents below 60 years or 50,000 when age is above 60 Years. Let’s analyze all scenarios:
Note: The Above Scenario is for Medical Policy Premium, in case of medical Expenditure scenario will be different which will analyzed in next question.
Q: What is preventive health check up and its treatment under 80 D?
Routine checkups are covered under preventive health check up, maximum of Rs 5,000 we can claim under this deduction. This is within the limit of Rs 25,000/50,000. The payment for preventive health check up can be made in Cash.
Example:- Ganesh has paid a health insurance premium of Rs 20,000 for the insurance of the health of his wife and dependent children in the financial year 2019-20. He also got a health check-up done for him and paid Rs 6,000.
Ganesh can claim maximum deduction of Rs 25000 u/s 80 D. he can claim Rs 20,000 for insurance premium and Rs 5000 for Preventive health checkups.
Q: What is the mode of payment for claim deduction u/s 80 D?
Medical Insurance Premium- To claim deduction u/s 80 D, payment should be made by any mode other than cash. (Net banking, card payment, UPI etc.)
Preventive Health Checkups- payment can be made by any mode (including cash).
Medical Expenditure- To claim deduction u/s 80 D, payment should be made by any mode other than cash. (Net banking, card payment, UPI etc.)
Note: payment made in cash for premium and medical expenditure not eligible to claim deduction.
Q: What is the treatment of GST paid on health insurance premium?
We can claim the entire amount paid to the insurance company including applicable GST.
Q: Definition of Family & Parents?
Family Includes individual, spouse of the individual and dependent children of the individual.
Parents include father and mother (dependent or otherwise). Father in law and mother in law are not included.
Q: Whether we can claim deduction for Medical Expenditures?
Budget 2018 has amended section 80 D, which allows a deduction for medical expenditures incurred on senior citizens.
Q: Prerequisites to claim deduction for medical expenditure u/s 80 D?
- Medical expenditure must be incurred on the family members and/or parents who are aged 60 years and above
- The person for whom medical expenditure has been incurred should not be covered under any health insurance policy.
Q: Who can claim deduction for Medical Expenditures u/s 80 D?
Deduction for medical expenditure can be claimed by the person who has incurred the medical expenditure. Therefore, if you are a senior citizen and are not covered under any health insurance policy, then you can claim the deduction for yourself.
You can also claim deduction, if you have incurred medical expenditure during the financial year for your parents (aged 60 years and above).
Q: What is type of expenditures covered under Medical Expenditures?
Expenses in the nature of Consultation Fees, Testing & check-up, medicines hearing aids and so on can be claimed.
Q: What will be the scenario when parents are covered under medical insurance from your employer?
The important condition to claim deduction for medical expenditures incurred is that the senior citizen not be covered under any health policy, so it is regardless of who pays the premium.
Q: Is proof required to claim deduction u/s 80 D?
It is advisable to keep the invoices for the payment made in your file to produce before any clarification by department.
Q: How much can you save under section 80 D?
Maximum deduction will be 50,000 in case you and your parents both are below age of 60 Years.
Maximum deduction will be 1, 00,000 in case you and your parents both are above age of 60 Years.
Q: What will be the amount of deduction if an assessee paid premium for more than one year?
In that case deduction amount will be calculated by dividing the amount paid by the number of years and also subject to maximum deduction allowable.
Q: Can a assesses claim deduction for premium paid for brother, sister, uncle- aunts and working children?
No, he cannot claim deduction for the above mentioned person.
Q: How much is the amount of deduction u/s 80 D for HUF?
If a HUF Pays Premium amount for his member whose age is less than 60 years then allowable deduction will be Rs 25000/- and in case of age of member more than 60 years then allowable deduction will be 50,000/-.