Deduction under section 80D is another option for the taxpayers to claim from his total income. The taxpayer is eligible is to take benefit under section 80d deduction of the income tax act.
Section 80D talks about health insurance premium and checkup expenditure, if you have incurred expenses towards medical insurance or medical checkup, then you can avail the benefit u/s 80D.
Under this section 80D, not only the individual but spouse along with children and parents (Senior citizen) or (super Senior citizen) expenditure on medical insurance and health checkup would be avail.
Age above 60 years – (senior citizen)
Age above 80 years – (Super senior citizen)
Must read: Why to Pay interest u/s 234A, 234B & 234C under Income tax act?
How Taxpayer takes benefit under section 80d deduction.
If you look carefully to income tax return form, there are several segments available to take benefit against your expenditure towards health insurance for (yourself, spouse, children, parents) and health checkup for (yourself, spouse, children, parents).
The above table is the options through the taxpayer select the category and enter the amount, the system forwards the eligible amount and that would the amount exempted from your income.
Health Insurance premium [u/s 80D(2)(a)]
There are seven different types of deductions that you can claim under section 80D.
- First health insurance premium paid for you & your family
- Second insurance premium paid for you (senior citizen) & your family
- Tax deduction on insurance premium paid for parents
- Tax deduction on insurance premium paid for parents (senior citizen)
- Insurance premium paid for self with family and parents
- Insurance premium paid for self with family and parents (senior citizen)
- Last Insurance premium paid for self (senior citizen) with family and parents (senior citizen)
Must read: Advance Tax “Challan No. 280” – (Step by Step Guide)
How much maximum deduction can you avail?
The table below provides the amount you can avail in the different category:
Medical Expenditure [u/s 80D(2)(b)]
Medical expenditure consists of three categories (this category is specifically for super senior citizen):
- Self (super senior citizen) and family.
- Parents (super senior citizen).
- Self (super senior citizen) & family (super senior citizen)including parents (super senior citizen).
Must Read: What is Fees u/s 234F? (Penalty for Late Filing Income Tax Return)
How much amount medical expenditure avail under section 80D [AY 2019-20]
Medical expenditure is segmenting available for Super senior citizen only, the details of an amount is provided in the table below:
Preventive health check-up [u/s 80D(2)(c)]
Preventive health checkup u/s 80D, you can claim expenses incurred up to Rs. 5,000 for each financial year.
Also Read: Section 80GG
There are three categories available to claim for the medical checkup.
Health check-up consists of three categories:
- Self and Family
- Self & family & parents
Also Read: Income tax rebate
In all three options, the taxpayer can avail the benefit of ₹ 5,000, which is the maximum total deduction allowed for a preventive health check-up.
Finance ministry declared in budget 2018 to hike the exemption under section 80d for senior citizen up to ₹ 50000 which was effected from 1st April 2019, the assessment year 2019-2020.
Now that you know everything about tax exemptions under Section 80D of the Income Tax Act. Don’t forget to get the benefits of the section.
Also Read: Tax relief under section 89(1) on salary arrears
Health Insurance premium paid in advance u/s 80D(4A)
From FY 2018-19 (AY 2019-20), The premium paid against health insurance, deduction shall be available only for the current financial year even if such premium is paid in advance.
Health Insurance companies allow the customer to pay the premium for more than 1 year, under section 80D(4a), the deduction is allowed only for the premium considered for the current financial year.
For Example:- Mr. Shakhar paid ₹ 40,000 towards health insurance of his family on 01-04-2018. This premium covers his family’s health for the next 4 years. Considering ₹ 10,000 (premium per annum), the deduction allowed for Mr. Shakhar u/s 80d is only ₹ 10,000.
FAQ u/s 80D
Question: Can I claim tax deductions on my parents medical premium under section 80d?
Answer: Yes, under section 80D (A), you can claim parents medical premium up to a certain level.
Question: What would be the maximum tax exemption limit u/s 80d?
Answer: The combined tax exemption limit under 80d is ₹ 15000 If health checkup of ₹ 5000 is already utilized then the balance of ₹ 10000 will be claimed u/s 80d, even if the premium paid is more then ₹ 10000.
9 thoughts on “Section 80D – Tax benefit for (Health, Medical Treatment premium) [AY 2019-20]”
Recently both of my parents incurred huge medical expenditure. there was no medical insurance money was paid in cash and cheque.
Can we still avail deduction under section 80 D.
If your parents come under dependent with a disability, in that cause you can avail u/s 80DD. It is recommended to get good health insurance (family floater)
For more information on 80DD read:- https://financialcontrol.in/section-80dd/
Under sectin 80 Suppose I spend Rs 5000/- for payment of fees and some pathological test and medicine on outdoor visit of doctor, can I claim these expenses under Sec. 80 D. If yes, what are the documents tobe submitted.
Medical expenditure is permitted only for super senior citizen up to Rs 30000/- u/s 80D (B) Medical Expenditure.
MY mother is of 64 ages .she is under treatment at sigma hospital .But test and medical receipt are original with gst number of shop owner .BUT Mode of payment is CASH . IN SECTION 80 D it is mention that mode of payment must be other than cash. Then what is to be done since medical store and laboratories donot take cheque or digital mode.
can I claim medical expernditure on my mother`s treatment since I have GST NO BILLS BUT PAYMENT IS BY CASH.
Medical expenditure is allowed u/s 80 D Subsection B up to Rs 30000/- only for parents (super senior citizen) above 80 years, in your case, your mother is a senior citizen, Medical expenditure only allowed for super senior citizen (Above 80).
If I pat Rs. 40,000.00 for 4 years, shall I get deduction @ Rs. 10,000.00 for four consecutive years u/s 80D (4a) ?
If you have paid the amount in single FY not matter for how many years of premium you paid, you can take the benefit in single FY only.
I am 57 years old & has opted VRS from CPSE. I am entitled to avail CGHS facility post retirement. I have deposited Rs78000/- with CGHS as fee for procuring my lifetime CGHS card. Am i entitled to get income tax rebate on this fee. pl inform.