e-Filing 2.0
New Income Tax Filing Features
e-Filing 2.0
New Income Tax Filing Features
Hiral Vakil
2019-03-07 13:52:09Section 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.
In case of an individual, medical insurance premium, medical expenditure, and preventive health checkup expenses are eligible for a deduction if paid for:
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.
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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 | ||
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 1, ITR 2, ITR 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.
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.
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.
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
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.
Hey @sushil_verma
There are a wide range of deductions that you can claim. Apart from Section 80C tax deductions, you could claim deductions up to INR 25,000 (INR 50,000 for Senior Citizens) buying Mediclaim u/s 80D. You can claim a deduction of INR 50,000 on home loan interest under Section 80EE.
Hey @Dia_malhotra , there are many deductions that you can avail of. Your salary package may include different allowances like House Rent Allowance (HRA), conveyance, transport allowance, medical reimbursement, etc. Additionally, some of these allowances are exempt up to a certain limit under section 10 of the Income Tax Act.
For eg,
Tax on employment and entertainment allowance will also be allowed as a deduction from the salary income. Employment tax is deducted from your salary by your employer and then it is deposited to the state government.