Section 80D: Deduction For Medical Insurance,Health Checkup 2017-18

Section 80D: Deduction For Medical Insurance

Medical Insurance is such a key saving falling under Section 80D.So if you want to save tax on paying Health Insurance premium you can use Section 80D and minimize your tax.

Importance of Health Insurance: Humans are prone to health problems and serious diseases and timely or untimely death.

So in order to secure health or life of yours,family members strictly your parents,spouse and dependent children

Then you must have a family insurance scheme.

Besides health coverage you can get tax saving while calculating your income tax .

Important Note: you can claim deduction u/s 80D only for yourself,your spouse,Parents and dependent children.

Also read Tax saving under section 80G

Features of Section 80D:

Under this Section 80D you can claim rs 25,000 as deduction on health premium paid.

If either of your family members is senior citizen and premium paid against his name then Rs 30,000 are deductible.

Three Important Conditions:

  1. if you,your spouse and children+your parents are below 60 years,then you can get deductions of rs 25,000 for you,spouse and children and rs 25,000 for your parents and hence can get total of Rs 50,000 as deduction benefit.
  2. And Similarly if one of you,spouse and your children are below 60 years you will get rs 25,000 and either of your parents are above 60 years then they will get separate rs 30,000.And overall deduction 55,000 you can claim.
  3. Finally  if one of you,spouse and your children are above 60 years you will get rs 30,000 and either of your parents are above 60 years then they will get separate rs 30,000.And overall deduction 60,000 you can claim.

Example-1: Suppose Mr. Anoop Singh of 45 years age is having health Insurance policy

And he also has paid Rs 23,000 premium towards his wife,children or himself.

Similarly his Father and Mother are of 55 and 50 years old.And he pays Rs 20,000 health premium.

Then Mr Anoop Singh can claim Rs 43,000 deduction u/s 80D.

Example-2: 

Suppose Mr. Anoop Singh of 55 years age is having health Insurance policy and he also has paid Rs 26,000 premium towards his wife,children or himself.

Similarly his Father and Mother are of 65 and 60 years old.And he pays Rs 35,000 health premium for them.

Then Mr Anoop Singh can claim maximum of Rs 25,000+30,000=55,000 deduction u/s 80D.

Example-3: 

Suppose Mr. Anoop Singh of 60 years age is having health Insurance policy and he also has paid Rs 35,000 premium towards his wife,children or himself.

Similarly his Father and Mother are of 65 and 60 years old.And he pays Rs 35,000 health premium for them.

Then Mr Anoop Singh can claim maximum of Rs30,000+30,000=60,000 deduction u/s 80D.

Health Check-up claim:

Example: 

Suppose Mr. Anupam Singh of 55 years age is having health Insurance policy and he also has paid Rs 20,000 premium towards his wife,children or himself.

And further he has paid rs 6,000 for health check-up.

Then Mr. Anupam Singh can claim total of  Rs 20,000+5,000=25000 deduction.

Most Important Points:

  • You can pay premium only online either by credit card,net banking etc.
  • you can not claim deductions for your in laws.only spouse can claim for her parents.
  • if your children are above 18 and self employed then you can not deduct premium amount paid for your children in this case.

 

Kuldeep Singh
 

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