80D Tax Deductions with Preventive Health Check-up
Section 80D of the Income Tax Act offers tax deductions on medical insurance premiums and healthcare expenses for individual taxpayers and Hindu Undivided Families (HUFs). An individual can claim up to Rs 25,000 for his/her check-up, spouse's and dependent children's medical insurance premium, an additional deduction of Rs 25,000 for parents' insurance premium if they are below 60 years of age, and Rs 50,000 if the parents are above 60 years.
The preventive health check-up deduction can be claimed for medical expenses up to a maximum of Rs 5,000 if insurance does not cover them. If the individual/spouse and parents are above 60 years old and have medical insurance, they can claim a maximum deduction of Rs 1,00,000.
HUFs can claim a deduction of Rs 25,000 if the insured members are below 60 years and Rs 50,000 if any of the members are 60 years or above.
The cost of an 80D health check-up annually can be claimed for up to Rs 5,000 for individuals and Rs 50,000 for senior citizens.
The budget of 2018 introduced a new provision for claiming deductions on a single premium paid as a lump sum for health insurance policies, where a taxpayer can claim a deduction equivalent to the applicable fraction of the amount under Section 80D. The fraction gets calculated by the lump sum paid as a premium divided by the number of years the policy will be valid.
Documents Required for 80D Preventive Health Check-up Deduction
Although the Income Tax Department does not require proof to claim the 80D preventive health check-up income tax deduction, experts recommend maintaining a record of all expenses incurred. The primary causes for this are the following:
- Your employer may request documentation of all deductions when issuing Form 16 for filing tax returns.
- Keeping a record of bills can simplify the process of claiming preventive health check-up tax benefit.
FAQs on Preventive Health Check-Ups And Tax Deductions
What is the Maximum Amount that You Can Claim for Preventive Health Check?
Section 80D of the ITA permits individuals to claim a deduction on health insurance premiums paid for themselves, their spouse, and dependent children, with additional deductions available if the policy covers their parents' health insurance. The maximum deduction you can claim is Rs 50,000 for insured individuals aged 60 years or over. The maximum deduction under Section 80D ranges from Rs 50,000 to Rs 1 lakh depending on the individual's age and insurance coverage. The amount of income tax savings depends on the individual's income tax slab, with tax savings ranging from Rs 1,300 to Rs 7,800, including cess for taxable incomes ranging between Rs 2.5 lakh and Rs 10 lakh.
Can I claim a preventive health check-up in ITR?
Under Section 80D of the Income Tax Act, individuals can claim a deduction on health insurance premiums as well as expenditures incurred on preventive health check-ups for themselves, their spouse, dependent children, and parents, subject to the terms and conditions specified. The government introduced this benefit to encourage regular health check-ups to detect illnesses or health conditions in a timely manner. The deduction limit for preventive health check-ups is up to Rs 5,000 per financial year, included within the overall Section 80D limit of Rs 25,000 for individuals and Rs 50,000 for senior citizens. However, cash payments for premiums and expenses paid by someone other than the taxpayer are not eligible for deduction under Section 80D. To claim this benefit, individuals must file their Income Tax Return (ITR) and disclose the 80D deduction under "Deduction under chapter VI-A."
What tests get covered under preventive health check-ups?
The medical tests conducted under preventive health check-ups include cancer/tumour markers, cardiac indicators, abdominal ultrasound, breast mammography (for women above 30 years), PSA (for men above 45 years), chest X-ray, ECG, 2D echocardiogram, coronary angiography, fasting and random blood sugar, and lipid profile.
Different age groups require different tests, such as blood urea, serum creatinine, BUN, HDL, LDL, triglyceride, liver enzymes, serum bilirubin, TSH, T3 level, and T4 level.
Various types of preventive medical check-ups are available, including full body check-ups, women's and child health check-ups, and diabetes check-ups. Health insurance plans covering these check-ups can be purchased, and filing an ITR is necessary to avail of tax benefits on the costs of preventive health check-ups. However, you cannot claim a tax benefit for premiums paid in cash or by someone else cannot be claimed as deductions under Section 80D of the Income Tax Act.