Navigating the intricacies of tax filing can be daunting, especially when filling out Schedule 80D in the Income Tax Return (ITR). This vital document pertains to health insurance and medical expenditure deductions, significantly influencing your tax liabilities. Understanding its nuances is paramount for accurate filing and maximising deductions.
Let’s delve into the essentials of completing Schedule 80D in your ITR to ensure compliance and optimise your tax-saving opportunities.
What is Schedule 80D in ITR?
Schedule 80D in ITR refers to the tax deductions taxpayers can claim for the premiums they pay for medical insurance policies. These policies can be for self, parents, spouse, and dependent children. This section also allows for deductions for the medical expenses that are paid by senior citizens. These deductions can be claimed by individuals and Hindu Undivided Families (HUF).
The maximum amount of deductions that taxpayers can claim under this section are:
Individuals –
maximum of Rs.25,000 for self and family members (below 60 years)
maximum of Rs. 50,000 for self, parents, or spouse (below 60 years)
HUFs –
maximum of Rs.25,000 for insurance taken for members below 60 years
Maximum of Rs.50,000 for insurance taken for members below 60 years
Fill Schedule 80D in ITR
Firstly, let us understand the eligibility for health insurance premiums paid under Section 80D of the Income Tax Act:
- Taxpayers below 60 years old can claim deductions of up to INR 25,000 annually.
- Senior citizens can claim a maximum deduction of INR 50,000 each year.
- So, if you pay premiums for senior citizen parents and your health insurance premium, you can avail of a tax rebate of up to INR 75,000 yearly.
- If all policyholders are above 60, deductions of up to INR 1 lakh can be claimed annually.
To claim these deductions, visit the Income Tax e-filing portal and fill out Schedule 80D in ITR.
So, how to fill Schedule 80d in ITR?
- The first step is to visit the ITR e-filing portal and login with your credentials.
- You will find a list of ITR forms. Select the one that applies to you, like ITR-1 Sahaj or ITR-4 Sugam.
- Next, click on ‘Tax Deductions’ under the ‘Gross Total Income’ section.
- You will be directed to a page that has questions regarding tax deductions. In the 5th question, confirm eligibility for deductions related to medical insurance premiums and preventive health check-ups by clicking on ‘Yes’.
- Fill out Schedule 80D accurately on the next window. Enter complete and correct details of health insurance premiums and preventive health check-up expenses that you have incurred during the financial year.
- If you pay premiums for senior citizen parents, provide the necessary information to claim the deduction.
- After filling in all the details, click ‘submit’.