HR Terminology

Section 80D

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  7. Section 80D: Health Insurance Deduction

Section 80D of the Income Tax Act allows taxpayers to claim deductions for premiums paid towards health insurance policies.

It is designed to encourage individuals to invest in health insurance, helping them manage the financial burden in case of medical emergencies while also providing tax relief.

Under Section 80D, individuals can claim deductions for health insurance premiums, which include policies for self, spouse, children, and parents. The maximum deduction available under this section depends on the age of the insured individuals. The tax benefit is available for premiums paid in any mode, including online payments and cash (for premiums paid to senior citizens). Furthermore, if the taxpayer or their family members are senior citizens, the maximum deduction limit increases, ensuring that older individuals are encouraged to secure comprehensive health coverage. This section not only reduces taxable income but also promotes financial well-being by incentivising health insurance purchases.

FAQ

Any taxpayer—whether an individual, Hindu Undivided Family (HUF), or salaried employee—can claim a deduction under Section 80D for health insurance premiums paid for themselves, their family, or their parents.

The maximum amount that can be claimed depends on the age of the insured person. For individuals below 60 years, the limit is Rs. 25,000 for self, spouse, and children, and Rs. 25,000 for parents (up to Rs. 50,000 if parents are senior citizens). For senior citizens (above 60 years), the deduction is Rs. 50,000 for self, spouse, and children, and Rs. 50,000 for parents.

Yes, Section 80D also covers deductions for preventive health check-ups, so you can claim a deduction for expenses related to medical check-ups for yourself and your family members.

Yes, you can claim a deduction for premiums paid on health insurance policies taken for your spouse, children, and even your parents (whether or not they are dependent on you).

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