Deduction for Mediclaim and Preventive Health Checkup Under Income Tax (80D)

Updated: Mar 13, 2019

Deduction under 80D for FY 2018-19 (AY 2019-20)


Mediclaim Deduction under Income Tax 80D
Deduction for Medicalim under 80D

Health is Wealth proverb gains prominent relevance in today's era. Now, being habits and lifestyle is changed maintaining good health is a challenging task with medical expenses moving higher and higher.

With so many mediclaims available in market every concerned individual is highly motivated to choose the best policy with pleasing benefits. Income Tax Act, motivates every individual to get Mediclaim policy for self and family by allowing special deduction for premium paid on mediclaim under section 80D. Thus, Mediclaim saves your precious hard earned savings as well as reduces tax burdens.


Lets go into detail what Income tax offers for investment made towards Mediclaim and Medical expenditure towards preventive health checkup.


Lets first learn about deduction eligibility criteria for mediclaim premium paid.


Section 80D of Income Tax Act specifies the eligibility and criteria for availing deduction for contribution made towards Mediclaim Premium.


Who are eligible for deduction under 80D?

Individual:

In case of Individual deduction is allowable for Medical Premium paid for:

  1. Self

  2. Spouse

  3. Dependent Children

  4. Parents

Hindu Undivided Family (HUF):

In case of HUF deduction is allowed for Mediclaim Premium paid for:

  1. Members of HUF

What is the Maximum Allowable Deduction under 80D?

In case of Individual:


If no one is senior citizen (below 60 years), maximum deduction allowable will be

  • Paid for Self, Spouse & Dependent Children - Rs.25,000/-

  • Paid for Parents - Rs.25,000/-

Total Maximum Deduction - Rs. 50,000/-


If Parents (either father or mother or both) are senior citizen (60 years or more), maximum deduction allowable will be:

  • Paid for Self, Spouse & Dependent Children - Rs.25,000/-

  • Paid for Parents (Sr. Citizen) - Rs.50,000/-

Total Maximum Deduction - Rs. 75,000/-


If any or all of Self, Spouse and Children are senior citizen (60 years or more), maximum deduction allowable will be:

  • Paid for Self, Spouse & Dependent Children (any or all are Sr. Citizen) - Rs.50,000/-

  • Paid for Parents (Sr. Citizen) - Rs.50,000/-

Total Maximum Deduction - Rs. 1,00,000/-


In case of HUF:


If no one is senior citizen (below 60 years), maximum deduction allowable will be

  • Paid for Self & Members - Rs.25,000/-


If any or all is senior citizen (60 years or more), maximum deduction allowable will be

  • Paid for Self & Members - Rs.50,000/-

What is the mode of Payment for availing benefit?

Assessee can pay mediclaim premium in any mode except for cash. If paid in cash, assessee will not be able to claim deduction under Income Tax.



Point to be noted:

Usually medicalim companies do not provide insurance for the super senior citizens (above 80 years), thus to allow there medical expenditure as deduction section 80D was amended and extended to include medical expenditure of a super senior citizen (above 80 years) up to Rs.50,000/-.


Preventive health checkup under 80D:

Any expenses incurred towards Medical checkups or preventive health check-up expenses can be claimed as deduction, maximum up to Rs.5,000/-. Payment for such check-up can be made in cash or any other mode.

This deduction for health check-up is subject to maximum allowable deduction altogether with mediclaim premium paid as mentioned above.


e.g Mr. Amit is senior citizen and has paid Rs.60,000/- for mediclaim premium and Rs. 15,000/- for medical check up. Maximum allowable deduction under 80 D will be Rs.50,000/-only

However if Mr. Amit has paid Rs.44,000/- for mediclaim and Rs.15,000/- for medical check up, maximum allowable deduction will be Rs.49,000/- (Rs.44,000 + Rs.5,000/-).


About an Author:

Amish Maknojia is a Practicing tax consultant and enthusiastic entrepreneur with 5 years of experience. He is a founder of iDeal ConsulTax and is aggressively involved in providing services in the field of Startup, Income Tax and GST. His motive is to create an organised and systematic approach to consultancy with utmost integrity.




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