Income TAX Benefit  Of Health Insurance  Policy  Under Section 80D FY 2019-20

Section 80D fy 2019-20

Health Insurance Tax benefits fy 2019-20: for assessment year 2020-21,you can take income tax benefits against the Heath premium,you pay for self,spouse, and dependent children  and your parents, under section 80D fy 2019-20.

In today’s costly world,you must have a health insurance policy for your family.

At the time of illness, expenses will definitely wipe out your savings.

As per union budget 2019,we have analysed section 80D of income tax act.

So below are the income tax benefits of health insurance under section 80D for FY 2019-20.

 Tax benefit for health insurance premium paid

Under section 80D of income tax act, you can claim a deduction up to Rs. 25,000  for fy 2019-20, for medical insurance premium installments you have paid .

Conditions to avail income tax deduction for health insurance

  • The premium should be for you,
  • your spouse
  • And dependent children.

In case self or spouse is senior citizen

if  either you or your spouse is a senior citizen (60 years or above), the tax benefit will rise up to Rs. 30,000.

Deduction for preventive health check-ups

There is also a separate deduction for expenses incurred on preventive health check ups.

Hence,Up to rs. 5,0000 are deductible for preventive health check ups. Under section 80D fy 2019-20.

You may like to know:  Income tax slab rates fy 2019-20

Additional deduction for health insurance premium paid for parents

Additionally,if you are paying premium for your senior citizen parents (either of them is senior citizen or both.)

Then you can take rs. 30,000 deduction under section 80D AY 2020-21 of income tax act.

In case your parents are not senior citizens,then rs. 25,000 are allowed for deduction.

Separate deduction for preventive health check up for parents

Health check ups  incurred on your parents are allowed for rs. 5,000 deduction annually.

Important points regarding section 80D

You have to pay premium either online,through cheques,credit card,or debit cars.

For cash payments,you are not entitled for any deduction under 80D section.

Example-1: to get deduction under 80D section

Finally,we take an example to show you,how you can take tax benefit under section 80D.

Suppose, you are paying rs. 25,000 premium towards health insurance for you,your spouse and your dependent children.

Suppose you are also paying premium of rs. 30,000 towards health insurance for your parents,who are senior citizens.

Suppose you are also paying rs. 5,000 on preventive health check-ups.

Thus you can get total deduction of rs. 60,000 from your gross income.

Example-2: To get deduction under 80D section

Similarly,we take another example to show you,how you can take tax benefit under section 80D.

Suppose, you are  senior citizen and paying rs. 30,000 premium towards health insurance for you,your spouse and your dependent children.

Suppose you are also paying premium of rs. 30,000 towards health insurance for your parents,who are senior citizens.

Suppose you are also paying rs. 5,000 on preventive health check-ups.

Thus you can get total deduction of rs. 65,000 from your gross income.

Conclusion

Section 80D fy 2019-20So finally,it is clear from the above examples that you can get up to rs. 65,000 deduction under section 80D.

Apart from section 80C deductions,that allows you to maximum rs. 150,000 till date.

you can enhance your income tax savings by having health insurance for your family.

Please like and share, if you have learnt something.

Also read:income  tax rates for senior citizens fy 2019-20

Kuldeep Singh
 

is a professional blogger,teacher and income tax expert

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