Availing tax rebate under Section 80D

If you are paying premium for your health insurance policy (that is ‘mediclaim’ policy), you are entitled to claim tax rebate on the insurance premium under Section 80D of the Income Tax Act, 1961. The insurance policy could cover self, spouse, dependent children and parents. A Hindu Undivided Family (HUF) is also entitled to claim rebate on the mediclaim policy premium under Section 80D if the policy provides medical cover for any member of the HUF.

The amount of deduction available under 80D depends on the age of the taxpayer claiming the deduction. The deduction is up to a maximum of Rs 25,000 for an individual of less than 60 years of age paying for self, spouse, dependent children and parents (father, mother or both). The deduction is up to a maximum of Rs 30,000 in case of senior citizens above 60 years of age paying for self, spouse, dependent children and parents. These limits of tax deductions apply in the case of HUFs too.

Also, for very senior citizens above 80 years of age but not having medical insurance policy, a maximum of Rs 30,000 paid towards medical check-ups and treatments can be claimed as deduction. Thus, the maximum deduction that can be claimed by an individual under Section 80D is Rs 60,000.

From FY16-17 (that is, AY17-18), expenses incurred towards preventive health check-ups can be claimed as deduction under Section 80D, subject to a maximum limit of Rs 5,000. This deduction is available irrespective of the age or residence (whether in India or abroad) of the claimant. However, this deduction is part of the overall limit of Section 80D. Also, it must to be noted that premium paid in cash does not qualify for deduction under Section 80D, hence the premium has to be paid only through cheque, debit/credit card, net banking, or any other acceptable mode of payment to avail deduction.