The Income Tax Act (ITA) and Section 80D act as a torch of hope in the labyrinth of the tax system for a big group of Indian taxpayers. What part of the tax does Section 80D cover? That’s how it is, this blog will guide you through this section and show you the methods through which you can avail of the benefits.
What Is Section 80D?
Section 80D besides giving rebates on money spent on health insurance premiums also provides deductions for several other related medical expenses. This is a benefit for both: a person and a Hindu Undivided Family (HUF). This is the kind of caring that’s done for your money and also the body it’s the best.
Who Can Benefit from Section 80D?
You can claim deductions for the following people under this section:
- Yourself
- Your spouse
- Your dependent children
- Your parents
Let’s explore the specific expenses covered under Section 80D.
1. Health Insurance Premiums
The Section 80D provision is primarily about health insurance costs. It is the amount of money that you pay for the insurance of yourself, your spouse, children, and parents that shall be claimed as tax-deductible.
If let’s say, healthcare expenses are paid by you for yourself, your wife, and your dependent children you can get a tax concession of up to ₹25,000 a year. Besides this, if you insure your parents, you can claim a tax exemption of up to ₹50,000.
2. Preventive Health Check-Ups
The habit of healthy living is a matter of not only the body but also Part 80D is encouraging you to be healthy in advance. The sum paid for an annual health check is eligible for a tax deduction of up to ₹15,000, and it might include you, your family member, or your parents.
- Medical Expenses on Senior Citizens
Furthermore, If your parents are senior citizens and they have no health insurance besides deducting amounts for their medical expenses, you can also have deductions on Section 80D for their medical expenses. The maximum permitted of this is ₹50,000. With this, it is to be noted that uninsured parents may also benefit from the granting of health funds to their healthcare needs.
- Single Premium Health Insurance Policies
Suppose you paid a premium together with the full purchase of the health insurance policy. The case is different, you can still write off your payments. Given the fact, that the annual premium is split equally for the policy validity of between one and five years, you can claim the allowable amount each year.
How to Maximise Your Section 80D Benefits
- Make sure you preserve receipts or proof of all health insurance premiums and medical expenses.
- Pay premiums through digital modes such as net banking, UPI, or debit/credit cards; cash payments are not accepted to claim tax benefits.
Why Is Section 80D Important?
Health insurance is not just about saving taxes; it is actually about preparing for the uncertainty of life. With skyrocketing medical costs, Section 80D acts as an emergency cushion for you and your dear ones.
Be it their health or tax woes, a smart decision is all that it needs to ensure your family is healthy and also gets substantial tax savings. So, if you haven’t done it already, think of investing in health insurance today and make full use of Section 80D!