80D Deductions under Income tax Act, 1961

This article is about 80D Deductions which enables Individuals & HUF to reduce taxable income by following amounts every financial year.

Section 80D - Deduction in respect of Health insurance premia, Preventive health check-up, and Medical expenditure

Eligible assessee: Individual or Hindu undivided family(HUF)

Amount of Deduction in case of Individual:

(a) Premium paid on Insurance on the health of the assessee or his family (or) 

Central Government(CG) Health Scheme or such other scheme as may be notified by the CG behalf (or)
Any payment made on account of preventive health check-up of the Assessee or his Spouse or Dependent children as does not exceed in the aggregate Rs 25,000(In case of senior citizen additional deduction upto Rs 25,000 available); and

(b) Premium paid on Insurance on the health of the parent or parents of the assessee (or)
Any payment made on account of preventive health check-up of the parent or parents of the assessee as does not exceed in the aggregate Rs 25,000(In case of senior citizen additional deduction upto Rs 25,000 available);

(c) Medical expenditure incurred in respect of a senior citizen being assessee or his Spouse or Dependent children as does not exceed in the aggregate Rs 50,000 and no amount has been paid to effect or to keep in force an insurance on the health of such persons; and

(d) Medical expenditure incurred in respect of a senior citizen being parent of the assessee as does not exceed in the aggregate Rs 50,000 and no amount has been paid to effect or to keep in force an insurance on the health of such person

Maximum Deduction (a+c)= Rs 50,000 & (b+d)= Rs 50,000

Amount of Deduction in case of HUF:

(a) Premium paid on Insurance on the health of any member of that HUF as does not exceed in the aggregate Rs 25,000(In case of senior citizen additional deduction upto Rs 25,000 available); and

(b) Medical expenditure incurred in respect of a senior citizen being any member of the HUF as does not exceed in the aggregate Rs 50,000 and no amount has been paid to effect or to keep in force an insurance on the health of such person

Maximum Deduction (a+b)= Rs 50,000

Notes for Section 80D:

• Maximum deduction for amount paid on preventive health check-up is Rs 5,000
• Payments in cash is allowed only in respect of preventive health check-up. for other payments any mode other than cash
• Where the amount specified in clause (a) or clause (b) of sub-section (2) or clause (a) of sub-section (3) is paid in lump sum in the previous year to effect or to keep in force an insurance on the health of any person specified therein for more than a year, then, subject to the provisions of this section, there shall be allowed for each of the relevant previous year, a deduction equal to the appropriate fraction of the amount.
  (i)  "appropriate fraction" means 1/Total number of relevant previous years
  (ii)  "relevant previous year" means the previous year beginning with the previous year in which such amount is paid and the subsequent previous year or years during which the insurance shall have effect or be in force.
• "senior citizen" means an individual resident in India who is of the age of 60 or more at any time during the relevant previous year;
• Insurance referred to in this section shall be approved by IRDA.

Also read : Deduction for Medical treatment under section 80DD and 80DDB of Income tax act 1961

                  

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