Section 80D : Deduction for Medical Insurance Premium

author portrait

Hiral Vakil

Chapter VI-A
Section 80D

Section 80D of the Income Tax Act allows a deduction to an Individual or HUF for the amount paid towards medical insurance premium, medical expenditure, and preventive health checkup. Any amount paid to LIC or other insurers for medical insurance is covered under section 80D.

Deduction under section 80D is not allowed for Financial Year 2020-21 if the taxpayer opts for the new tax regime
Tip
Deduction under section 80D is not allowed for Financial Year 2020-21 if the taxpayer opts for the new tax regime

Who is Eligible to Claim a Deduction from Insurance Premium Under Section 80D?

In case of an individual, medical insurance premium, medical expenditure, and preventive health checkup expenses are eligible for a deduction if paid for:

Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
Explore
Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
Explore

In the case of Hindu Undivided Family (HUF), a deduction is allowed for medical insurance premium paid for a member of HUF. You can claim this deduction at the time of filing ITR.

Upload Form 16
File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

Upload Form 16

File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

What is the insurance premium deduction limit under section 80D?

In budget 2018, the finance minister increased the limit of deduction available to a senior citizen from INR 30,000 to 50,000. And within the overall limit, medical expenditures are allowed only to a senior citizen. Following table shows the overall limit of deduction available u/s 80D:

 

Paid For Deduction Overall Limit
Self, spouse & Children INR 25,000 on Premium INR 25,000
INR 5,000 on Health Checkup
Self, spouse & Children + Parents INR (25,000 + 25,000) = INR 50,000 on Premium INR 50,000
INR 5,000 on Health Checkup
Self, spouse & Children + Senior citizen parents INR 25,000 + INR 50,000 = INR 75,000 on Premium INR 75,000
INR 5,000 on Health Checkup
Self, spouse & children (senior citizen) + Senior citizen parents INR (50,000 + 50,000) = INR 1,00,000 on Premium INR 1,00,000
INR 5,000 on Health Checkup
HUF member INR 25,000 on Premium INR 25,000
NA
HUF member (Senior Citizen) INR 50,000 on Premium INR 50,000
Ask an Expert (Income Tax)
Talk to an expert via call, whatsapp or messages. Ask questions about tax returns, applicability & compliance etc.
[Rated 4.8 stars by customers like you]
Ask an Expert (Income Tax)
Talk to an expert via call, whatsapp or messages. Ask questions about tax returns, applicability & compliance etc.
[Rated 4.8 stars by customers like you]

ITR Form Applicable for Section 80D

The taxpayer can claim deductions u/s 80D while filing ITR if all the above-mentioned conditions are full-filled. Individuals/HUFs can claim 80D in any of the ITR forms, i.e, ITR 1ITR 2ITR 3, and ITR 4 depending upon their income sources. The due date for filing ITR is 31st July of the next FY if the tax audit is not applicable.

For FY 2019-20, due to COVID-19 the due date for filing ITR has been extended to 30th November 2020 for all taxpayer.
Tip
For FY 2019-20, due to COVID-19 the due date for filing ITR has been extended to 30th November 2020 for all taxpayer.

Supporting Documents

Along with the common documents required to pay income tax like Form 16, PAN, etc, the taxpayers can provide documents of medical expenditures such as Medical Insurance Premium Receipt or Preventive Health Check-Up.

Tax Savings & Deductions: Section 80C, 80CCE, 80D, 80TTA & others
Learn more about the deductions that can be claimed on certain expenses
Read More
Tax Savings & Deductions: Section 80C, 80CCE, 80D, 80TTA & others
Learn more about the deductions that can be claimed on certain expenses
Read More

FAQs

Can I pay insurance amount in cash and claim deduction?

No. Any mode other than cash will make you eligible to claim a deduction of medical insurance paid during the year. However, you can claim a deduction for any expenses incurred for preventive health checkup whether paid in cash or in any other mode.

Can I claim deduction for medical insurance of my independent son?

No. As per the income tax act, deduction u/s 80D is allowed for any insurance premium paid for self, spouse, dependent children and parents. So if children are independent then any medical insurance premium paid for them will not be allowed deduction u/s 80D

What are the supporting documents to claim deduction u/s 80D?

You should keep medical insurance receipts as supporting document while claiming deduction u/s 80D. In the case where medical expenditures are incurred, the medical bill is sufficient.

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    Close Bitnami banner
    Bitnami