80D Deduction, Section 80D Income Tax Act, Medical Insurance Deduction

The Indian Govt has made provisions for individuals and members of a family (HUF) in Section 80D for tax exemptions amounting up to 25,000 INR on the premium paid towards medical insurance cover. Dependant parents, self, spouse, and children are covered under 80D deduction .For parents aged less than 60, there is an additional deduction of a maximum of 25,000 INR, and for those aged 60 and above, this amount increases to an additional 50,000 INR according to the budget of 2018. In situations where both the covered parent and the tax-paying individual are aged above 60, the maximum deduction under section 80D amount is capped at 1,00,000 INR.

1. A taxpayer and his/her parents aged below 60 years. In this case, the medical insurance premium paid is the sum of 25,000 INR, which covers self, children, and family plus an additional 25,000 INR for parents. Deduction under 80D would be 50,000 INR.
2. The tax-paying individual and family aged below 60, with parents aged above 60 years. Here, the medical insurance premium to be paid is the sum of 25,000 INR which covers self, children, and family plus an additional 50,000 INR for parents. Maximum deduction under 80D would be 75,000 INR.
3. The tax-paying individual, family along with parents all aged above 60 years. Here, the medical insurance premium to be paid is the sum of 50,000 INR which covers self, children, and family plus an additional 50,000 INR for parents. Deduction under 80D would be the maximum available limit of 1,00,000 INR.

Along with health insurance , Section 80D also covers precautionary health check-ups and allows for a maximum deduction of 5,000 INR included in the whole 25,000 or 50,000 INR cover as applicable. This is beneficial in case of tax-paying individuals who prefer preventive check-ups. They can avail an annual health examination to rule out any underlying complications while getting tax exemptions for the same.There is a new allocation for single premium Mediclaim policies as per the Union Budget of 2018. The provision enables a tax-paying individual to make a one-time bulk payment towards a Mediclaim policy which may have a single or multi-year validity. Under section 80D, such bulk payments towards health insurance policies can be claimed for deduction subject to the prior limits as applicable.

1. Select the financial year.
2. Select if you are paying taxes under the new regime/115 BAC.
3. Enter the policyholder's age (if the policyholder is above 60 years).
4. Enter the value of the Preventive Health Checkup and Medical Insurance premium amount.
5. Repeat steps 3 and 4 for parents' medical health policy.
6. The total eligible deduction under 80D will be computed automatically and will reflect on the screen.

1. Self and family, the total exemption limit is Rs. 25,000 (Rs. 5,000 health check-up and exemption Rs. 25,000 exemption limit).
2. Self and family plus parents, the total exemption limit is Rs. 55,000 (Rs. 5,000 health check-up and exemption Rs. 25,000 + Rs. 25,000).
3. Self and family plus senior citizen parents' total exemption limit is Rs. 80,000 (Rs. 5,000 health check-up and exemption Rs. 25,000 + Rs. 50,000).
4. Self ( senior citizen ) and family plus senior citizen parents, the total exemption limit is Rs. 80,000 (Rs. 5,000 health check-up and exemption Rs. 25,000 + Rs. 50,000).

1. What is the exemption limit under 80D? The premium of health insurance and preventive health check-up expenses for self/family or parents can be claimed under Section 80D.A person below 60 years of age can get a deduction of Rs. 25,000 for self, spouse and dependent children. deduction for parents also below 60 years Rs. 25,000. A total of Rs. 50,000 can be claimed.For a person below 60 years of age can claim a deduction of Rs. 25,000 for self, spouse and dependent children. If parents are above 60 years, then Rs. 50,000 can be claimed as a deduction. A total of Rs. 75,000 can be claimed.if a person as well his parents are above 60 years, then a deduction of Rs. 50,000 for self, spouse and dependent children. another Rs. 50,000 for parents above 60 years. The total deduction that can be claimed is Rs. 1,00,000.Section 80D allows deductions up to Rs. 65,000. If a health insurance premium is paid by cash, on behalf of someone or group health insurance made by the company, then it cannot be claimed under Section 80D.
2. What are the benefits of 80D? Section 80D was introduced to promote health planning and give importance to health. This was offered to an individual or HUF (Hindu Undivided Family) allows deductions up to Rs. 65,000. It covers preventive health checkups, medical expenses are covered for both policyholder and his family. A premium paid for a health insurance plan is also covered under this. All health-related expenses incurred on doctor's consultation, medication, medical devices (pacemaker, hearing aid etc.), as well as hospitalisation expenses can be claimed under Section 80D.
3. How do you calculate 80D? 80D can be calculated by using an 80D calculator. It helps in calculating the deductions that can be availed on insurance policies for which 80D deductions are applicable. this calculator can be used by following certain steps, which are:
4. If the calculator is not used, then the calculation can be done as -
5. Can we claim both 80D and 80dd? Yes, both 80D and 80DD can be claimed.Section 80D covers preventive health checkups, medical expenses are covered for both policyholder and his family. A premium paid for a health insurance plan is also covered under this.Certain health ailments and health conditions are covered under Section 80DDB, like cancer, neurological disorder, AIDS etc. under this, senior citizens can claim a tax rebate of up to Rs. 1 lakh. Citizens below 60 years can claim a tax deduction of Rs. 40,000. Section 80DD can be claimed by individuals who are residing in India or HUF for the medical treatment and maintenance of disabled dependents.For disabled dependents, the maximum deduction that can be claimed under Section 80DD is Rs. 75,000. If the dependent is severely disabled, then a deduction of Rs. 1.25 lakhs can be claimed. A full deduction can be claimed under Section 80DD.
6. Can medicine bills be claimed under 80D? All health-related expenses incurred on doctor’s consultations, medication, medical devices (pacemaker, hearing aid etc.), as well as hospitalisation expenses can be claimed under Section 80D. Expenses that do not qualify are cosmetic surgery, and non-prescription drugs (besides insulin). All prescribed medical bills for the policy holder along with his family can be claimed for deduction.If the parents or self is above the age of 60 years, then all medical treatment, as well as premium paid for health insurance, is eligible for deduction under Section 80D of the Income Tax Act.It is important to save all the bills as documentary evidence. These include medical bills (prescription by doctors), reports of diagnosis etc. They may be required to get a claim on medical expenses.
7. How much medical expenses can we claim? 80D offers a deduction of up to Rs. 65,000. Besides this, under Section 80C, an additional claim of Rs. 1.5 lakhs can be applied.
8. How to claim medical expenses in ITR? For claiming medical expenses, 80D, 80DD, 80DDB, and 80U are to be filed in the income tax returns.Section 80D is for medical insurance and medical expenditure, and the maximum limit is Rs. 1 lakh. It is applicable for any individual residing in India and HUF (Hindu Undivided Family).Section 80DD is for the medical treatment of disabled dependents, and the maximum limit is Rs. 75,000 for non-severe disabilities. For severe disability, the maximum limit is Rs.1.25 lakhs. It is applicable for any individual residing in India and HUF (Hindu Undivided Family).Section 80DDB is for medical treatment for the self/dependent for a specified disease. The maximum limit is Rs. 40,000 if the age of the policyholder is below 60. If the age is above 60 years, then the maximum limit is Rs. 1 lakh or the amount spent. Whichever amongst these is the least will be applied. It is applicable for any individual residing in India and HUF ( Hindu Undivided Family ).Section 80U is for the medical treatment of disabled assessee (self). The maximum limit is Rs. 75,000 (non-severe disability). For severe disability, the maximum limit is Rs. 1.25 lakhs. It is applicable to any individual residing in India.

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