How to claim deductions under Section 80D | Fusion - WeRIndia

Deductions under Section 80D allow individuals and Hindu Undivided Families (HUF) to claim tax benefits for medical insurance premiums, including top-up health plans and critical illness plans.

These deductions can be claimed not only for the taxpayer’s own health insurance but also for family members, as specified under Section 80D.

Under Section 80D, eligible payments for tax deductions include the following:

• Premiums paid for medical insurance covering a spouse, dependent parents, or children through any payment mode.
• Expenses incurred for preventive check-ups.
• Medical expenses for the health of senior citizens above 60 years who are not covered under any health insurance scheme.
• Contributions made to Central Government Health schemes.

It’s important to note that deductions cannot be claimed for medical insurance premiums paid in cash.

Taxpayers, including individuals and HUFs, can claim deductions under Section 80D for health insurance premiums paid on behalf of the following family members: Self, spouse, dependent children, and parents.

HUFs are also eligible for deductions under this section, with premium payments made for any member of the HUF subject to the upper limit specified by the act.

The maximum deduction allowed under Section 80D is ₹25,000 per financial year. However, for senior citizens, the limit is increased to ₹50,000.

Before purchasing medical insurance, there are certain points to consider:

• Premiums paid on behalf of working children do not qualify for tax exemption under Section 80D.
• Premiums paid on behalf of siblings, grandparents, uncles, aunts, or other relatives are not eligible for tax deductions.
• If both you and your parents have contributed towards premiums, both of you can claim tax benefits to the extent of the payment made under Section 80D.
• Premiums paid for group medical health insurance provided by your employer cannot be claimed for a tax deduction.
• Deductions should be calculated based on the premium amount payable, excluding service tax and cess portions.

Section 80D provides tax deductions for medical insurance premiums, allowing individuals and HUFs to save on taxes while ensuring adequate health coverage for themselves and their families.

It is essential to understand the eligibility criteria and specific provisions before making medical insurance purchases to maximize the benefits under this section.

Image by Smriti Rai from Pixahive (Free for commercial use / CC0 Public Domain)

Image Reference: https://pixahive.com/photo/a-chemist-shop/