Articles 2395 views September 21, 2020

Section 80D of the Income Tax

Income Tax Act 1961 has been introduced in India to manage the tax burdens and calculate the taxes that have to be paid by the individuals. There are many sections in this Act that will give you a relief on the taxes you will need to pay on your income. So here, we will discuss the Section 80D of the Income Tax Act 1961. This Section will reduce your tax burden and you can enjoy exemption during taxation. Therefore, you must go through this blog and understand how Section 80D will give some relief while you are paying the taxes.

What is Section 80D?

Section 80D of the tax laws gives you income tax deductions related to the medical expenses. You can also call this deduction as the Medical Expenditure Deduction. It will deduct the amount of Health Insurance Premium, Health Check-up, and other expenditures from annual income. On the resultant amount, taxes will apply. That means the overall tax incidence will be less.

In the year 2018, Section 80D was amended in which it allowed the deduction for medical expenditure incurred on senior citizens. This deduction can be claimed by the Senior Citizen himself or by his children. The deduction amount was increased from Rs.30000 to Rs.50000 in the 2018 amendment.

Deduction Limit of Section 80D

For Self and Family· Rs.25000 as Tax Deduction
· Rs.5000 for Health Check-up
· Total Deduction Rs.30000
For Self, Family, and Parents· Rs.50000 as Tax Deduction
· Rs.5000 for Health Check-up
· Total Deduction Rs.55000
For Self, Family, and Senior Citizen Parents· Rs.75000 as Tax Deduction
· Rs. 5000 for Health Check-up
· Total Deduction Rs.80000
For Self (Senior Citizen), Family, and Senior Citizen Parents· Rs.1 Lac as Tax Deduction
· Rs.5000 for Health Check-up
· Total Deduction Rs.105000

Terms and Conditions

  1. This deduction will only be given if your medical insurance policy remains active.
  2. The insurance policy must be in your name or your spouse.
  3. You must submit the required documents to claim the deduction.
  4. Age for the Senior Citizen is defined as 60 Years and Above as per the Tax Laws.

Documents Required for the Claim

It is necessary that you must keep all the supporting documents that might help you get the tax deduction. You can see the documents below that are needed to claim tax deductions.

  1. Medical Bills
  2. Invoice of Medicines
  3. Doctor’s Prescription
  4. Consultation Fees Document
  5. Diagnostic Tests Receipts
  6. Medicine Bills

Mode of Payment

The deduction on the Medical Insurance Policy is allowed only if you have made your payment online through net banking, UPI, mobile banking, debit card, credit card, mobile wallets, and cheque. Cash payment of the premium of the health plan does not come with any deduction under Section 80D of the Income Tax Act 1961.

Health Check-Up Deduction

You must not get confused in the payment of the health check-up because the cash payment made for the health check-ups are acceptable for the tax deductions.

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