1. What is 80d?
Whenever It comes to claiming a health insurance policy, a majority of Indian people tend to ignore this. They are depended firmly on their savings or borrowing money in a medical emergency. But we all know very well that medical emergencies fall surprisingly. The Indian government encourages everyone to buy health insurance and provides tax deductions under section 80d.
Section 80d of the income tax act 1961, provides tax deduction on health insurance. Any individual or HUF can avail of the tax deduction for premiums paid towards health insurance in a given year under section 80d. The benefits of deductions are not only unrestricted on health insurance for self but individual’s spouse, children, or family also. A taxpayer can be escaped from paying hefty bills on medical situations under section 80d.
2. Available deductions under section 80d
There are various deductions available under section 80d. Deduction of Rs.25,000 is allowed under section 80d in a fiscal year. Senior citizens above 60 years can avail of the deduction of up to Rs.50,000.
|Premium Paid (Rs)
|Deduction under section 80d (Rs)
|For Self, Family, spouse, and Children
|Those Individual and parents who are below 60 years
|Those Individual and family who are below 60 years but parents are above 60 years
|Those individuals, family, and parents are above 60 years
|Members of HUF & Non-resident Individual
3. What is the eligibility to claim deductions under section 80d?
It is important to know the eligibility criteria before claiming the tax deduction under section 80d. Although there is no need to submit the proof while claiming the tax deduction. But yet it’s good to know the eligibility criteria which are mentioned below-
- Dependent parents
- Dependent children
4. What is a preventive check-up?
The preventive check-up was introduced by the government in the year 2013-14. A preventive check-up is to detect the illness or risk factors of disease-causing at an early stage of life. The preventive check-up is done twice a month as decided by the taxpayer. Preventive check-up mandates the commitment of the taxpayer to get the check-up at a given time. A preventive check-up is crucial to avoid any medical problems. As per the income tax laws, A taxpayer can avail of the deduction of up to Rs.5,000 for a preventive check-up under section-80d. There are various types of deductions such as Rs.25,000, and Rs. 30,000 to 75,000 depending on the criteria and situations. Moreover, individuals can make the payment in cash for the preventive health check-up.
5. Things to remember
- Investments made towards health insurance policies must emerge according to the schemes which are defined by the Central Government of India. These schemes and policies are verified and approved by the (IRDA) Insurance Regulatory and Development Authority.
- To avail of the deductions, the premium for health insurance must be completed via any mode of payment besides cash payments.
- To avail of tax benefits and deductions, Individuals can not use premium payments for siblings, grandparents, aunts, uncles, etc.
- Moreover, the deduction under section 80d does not hold for the payment of premiums for dependent children.
- If you have yielded the premium for health insurance that your parent uses, both individuals can claim for a deduction, mentioning the share of the premium.
Frequently Asked Questions
What is the limit for 80d in income tax?
A taxpayer can avail of the deduction of up to Rs.5,000 for a preventive check-up under section-80d. There are various types of deductions such as Rs.25,000, and Rs. 30,000 to 75,000 depending on the criteria and situations.
What is difference between 80C and 80d?
Section 80d of the income tax act 1961, provides tax deduction on health insurance. Any individual or HUF can avail of the tax deduction for premiums paid towards health insurance in a given year under section 80d. Section 80C of the income tax act is an opportunity for Individuals and Hindu undivided families. They can have tax deductions up to the 1.5 lakhs under section 80C. However, other corporate firms, companies, and partnerships can not avail of the tax benefits under section 80C.
Who can claim 80d?
All individuals who fall in the category of Self, Dependent parents, Spouse, or Dependent children are eligible to claim the tax deduction under section 80d.
Is proof required for 80d?
No. There is no proof needed while claiming the tax deduction under section 80d.
What should be my income range to qualify for 80d tax benefits?
The income tax of India has not yet announced any kind of income range to avail of the tax benefits. Every Hindu undivided family or any individual can claim the tax deduction under section 80d.
Can I claim a deduction on the premium paid for my independent children?
No. You can not claim a tax deduction for your independent children towards health insurance. In case of children are dependent on themselves then they can avail the tax deduction under section 80d.
Is HRA part of 80d?
No. Taxpayers can claim HRA (House Rental Allowance) exemptions under section 10(13A) or section 80GG.
Is cash payment permitted for the premium paid for deductions under section 80d?
No. Making the payment in cash for the premium insurance is not allowed.
What is NPS full form?
NPS stands for National Pension Scheme. National Pension Scheme (NPS) is one of the finest investment programs that is governed by the Regulatory and Development Authority for the Pension Fund (PFRDA).
Can I claim 80d for parents?
Yes. You can claim a deduction under section 80d for a spouse, children, self, and dependent parents.