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What Is Covered Under Section 80D?

Section 80D of the Income Tax Act offers tax benefits for health insurance premiums, but what exactly does it cover? In this article, we explore the details of what is covered under Section 80D, providing clarity on the tax deductions available.

  • 03 Nov 2023
  • 3 min read
  • 92 views

Let's talk about something that will help you save taxes while taking care of your health smartly. Section 80D of the Income Tax Act, 1961, was created to promote efficient health planning. This section offers deductions on health insurance premiums and medical expenses. So, you can be covered financially during unexpected health issues, and you can also lessen your tax burden. Let's dive in and see what this section brings to the health and wealth table!

 

What is Section 80D in health insurance?

If you're wondering about "Section 80D" in the world of health insurance, let us break it down for you. Imagine it as a secret treasure map in income tax, guiding you towards saving money while ensuring your health expenses stay in check.

 

In simpler terms, Section 80D grants you tax deductions on the premium you pay for your health insurance policies. It means while safeguarding your health and well-being, you're also lightening your income tax load.

 

But it doesn't stop there! This section doesn't just cover your insurance premiums; it also helps safeguard your loved ones. You can claim deductions not only for your health policy but also for the policies you take for your dependents: spouse, children and parents. It's a win-win situation – securing your family's health and getting tax benefits simultaneously.

 

So, the next time you consider buying a health insurance policy, remember that Section 80D is your ticket to a healthier and wealthier future.

Also read:

Deductions you can claim under Section 80D

If you are wondering what is covered under Section 80D, here's a breakdown of the deductions you can claim under it:                         

 

  • Premium paid towards insuring self, spouse and dependent children

You can claim the deductions for the premium paid towards health insurance policies for yourself, your dependent children, and your spouse. The maximum deduction allowed is up to ₹25,000 per financial year.

 

  • Parents' health insurance premium

If you support your parent's health insurance, you can claim additional deductions for the premium paid for their policies. The maximum deduction allowed for parents below 60 years of age is also ₹25,000. However, if your parents are senior citizens (60 years or above), the limit increases to ₹50,000.

 

  • Preventive health check-up expenses

You can also claim deductions up to ₹5,000 for expenses incurred on the preventive health check-ups for your family members. It sweetens the deal and encourages you to stay on top of your health game.

 

  • Maximum deduction

When you tally it all up, the maximum deduction you can obtain under Section 80D could be as high as ₹55,000. It is a combination of deductions for self, spouse, children, parents and preventive health check-ups.

 

So this year, be sure to get covered under a reliable health insurance policy, and get your loved ones’ health secured too. In case of any doubt, consult your CA or tax advisor for assistance.

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