Section 80D of the Income Tax Act provides deductions for premiums paid towards health insurance policies. Here are some key points regarding Section 80D:
- Health Insurance Premium: Section 80D allows individuals and Hindu Undivided Families (HUFs) to claim deductions for premiums paid for health insurance policies. This includes policies taken for self, spouse, children, and parents.
- Deduction Limits: The maximum deduction allowed under Section 80D depends on the age of the insured individual and the individuals covered under the policy.
a. For self, spouse, and dependent children:
- If the insured individual is below 60 years of age: The maximum deduction is up to Rs. 25,000.
- If the insured individual is above 60 years of age (senior citizen): The maximum deduction is up to Rs. 50,000.
b. For parents (whether dependent or not):
- If the parents are below 60 years of age: An additional deduction of up to Rs. 25,000 can be claimed.
- If the parents are above 60 years of age (senior citizen): An additional deduction of up to Rs. 50,000 can be claimed.
- Preventive Health Check-up: Section 80D also allows an additional deduction of up to Rs. 5,000 for expenses incurred on preventive health check-ups for the individuals covered under the policy, including the insured and family members.
- Combined Deduction: The total deduction under Section 80D, including health insurance premium and preventive health check-up expenses, cannot exceed the maximum limits mentioned above.
- Mode of Payment: The premium payments for health insurance policies should be made through any mode other than cash to be eligible for the deduction under Section 80D.
In conclusion, Section 80D of the Income Tax Act provides individuals and Hindu Undivided Families (HUFs) with deductions for health insurance premiums paid. The deduction limits depend on the age of the insured individual and the individuals covered under the policy. For self, spouse, and dependent children, the maximum deduction is Rs. 25,000 (Rs. 50,000 for senior citizens). An additional deduction of up to Rs. 25,000 (Rs. 50,000 for senior citizens) can be claimed for parents. Furthermore, an additional deduction of up to Rs. 5,000 is available for expenses incurred on preventive health check-ups. The deductions under Section 80D can contribute to significant tax savings while promoting health insurance coverage for individuals and their families.
