The following conditions should be satisfied for claiming deduction under section 80D.
- Assessee should be individual or HUF (whether resident or non-resident)
- Payment is made for
- The assessee himself, spouse, parents or dependent children of assessee in case of individual
- Any member in case of HUF
- Payment is made out of income chargeable to tax.
- Payment is not to be made in cash. This condition is not applicable for payment of preventive health check-up.
- Medical expenditure incurred on the health of a very senior citizen is allowed only if no amount has been paid for for an insurance on health of such person.
- Payment is allowed as shown under
|Medi-claim insurance premium||Allowed||Allowed||Allowed|
|Contribution made to Central Government Health Scheme or any scheme notified by Central Government||Allowed||Not Allowed||Not Allowed|
|Preventive health check-up||Allowed||Allowed||Not Allowed|
|Medical Expenditure on a “Very Senior Citizen“||Allowed||Allowed||Allowed|
- Calculation of deduction for Individual
|Payment made for assessee himself or for familiy|
|(a)||Medical Insurance||See Remarks||Aggregate of point (a),(b) and (c) cannot be more than Rs. 25,000.Additional Deduction of Rs. 5,000 is allowed for the medical insurance premium paid for senior citizen or very senior citizen.|
Total deduction for points (a) to (d) cannot be more than Rs. 30,000.
|(b)||Contribution to Health Scheme||See Remarks|
|(c)||Preventive Heatlh Checkup||Rs. 5,000|
|(d)||Medical Expenditure for a very senior citizen||Rs. 30,000|
|Payment made for parents|
|(a)||Medical Insurance||See Remarks||Aggregate of point (a) and (b) cannot be more than Rs. 25,000.Additional Deduction of Rs. 5,000 is allowed for the medical insurance premium paid for senior citizen or very senior citizen.|
Total deduction for points (a) to (c) cannot be more than Rs. 30,000.
|(b)||Preventive Heatlh Checkup||Rs. 5,000|
|(c)||Medical Expenditure for a very senior citizen||Rs. 30,000|
- Calculation of deduction for HUF
|(a)||Medical Insurance Premium||Rs. 25,000||Aggregate of point (a) and (b) cannot be more than Rs. 30,000.Additional Deduction of Rs. 5,000 is allowed for the medical insurance premium paid for senior citizen or very senior citizen.|
|(b)||Medical Expenditure for a very senior citizen||Rs. 30,000|
Family means the spouse and dependant children of the assessee. You can take medical insurance policy on your dependent children and claim tax deductions too. If they are aged above 18 years and employed then they can not be covered. Male children if not employed then they can be covered upto 25 years. Whereas, female children can be covered until she gets married (only if she is unemployed).
- If you are paying medical insurance premiums on behalf of your sister or brother then you can not claim tax deductions.
- Only premium amount can be claimed as a tax deduction. Do not include the GST amount.
Senior citizen is a resident individual who is of the age of 60 years or more at any time during the previous year.
Very Senior Citizen means an individual resident in India who is of the age of eighty years or more at any time during the relevant previous year.
- A person (age – 35) has paid medical insurance premium of Rs. 27,000 for himself and also made expenses of Rs. 4,000 for medical on his father (Age – 81).
Since maximum limit for deduction of deduction in case of medical insurance is Rs. 25,000 he gets a total deduction of Rs. 25,000 + Rs. 4,000 i.e Rs. 30,000.
- A person (age – 35) has paid medical insurance premium of Rs. 27,000 for himself and also made an expenses on preventive health check up of Rs. 3000 for his wife. Both amounts are paid in cash.
Since amount paid in cash is not allowed as deduction under section 80D, Rs 27,000 is fully disallowed. However this provision is not applicable on preventive health checkup therefore Rs. 4,000 will be allowed.
How to fill Section 80D deduction amount in Income Tax Returns (ITR)
- In ITR-1 or ITR-4 Online Utility – Go to Tab Income Details and go to point B4 and select the option and write the amount eligible paid by you. Maximum amount allowed will be calculated automatically.
- In ITR-1 or ITR-4 Offline Utility – In sheet Income details in point 5(g) select eh option and write the eligible amount.
- In ITR-2 and ITR-3 Offline Utilites – Open the sheet VIA and fill the amount of deduction in 1(g). And similarly in ITR utilities.
Details in Form 12BB to employer
Form 12BB is to be furnished by the employee to his employer. And if there are more than one employer in a year then to every employer. On basis of this form the employer will take deductions into account and thus deduct a lower amount of TDS.
Difference between Medical Insurance (Section 80D) and Medical Allowance (Section 10)
Medical insurance paid to an insurance company is allowed under section 80D. While medical allowance received from the employer is exempted up to Rs. 15,000, only up to the amount which is incurred as medical expenditure. Such medical allowance is exempt under section 10.
If you have medical insurance and received reimbursement of medical expenses then such expenditure can not be claimed as deduction under section 10.