Deduction under section 80D of the Income Tax Act is available in addition to the deduction of INR 1.50 Lakhs available collectively under section 80C, section 80CCC and section 80CCD (1).

Deduction under section 80D is available basically for two types of payment, namely –

1. Medical insurance premium (including preventive health check-up); and

2. Medical expenditure.

Categories of persons qualifying for deduction under section 80D

Deduction under section 80D is available to the following categories of persons –

Deduction under section 80D available to an Individual –

Following deductions are available to an individual –

1. Amount paid towards medical insurance premium or amount paid for preventive health check-up of the assessee or his family (here family means spouse and dependent children) up to a maximum amount of INR 25,000.

It should be noted here that in case of prevent health check-up maximum amount of INR 5,000 is allowed as a deduction, however, the same is included in the overall maximum deduction of INR 25,000.

2. Amount paid towards medical insurance premium or amount paid for preventive health check-up of parents of the assesseeup to a maximum amount of INR 25,000.

It should be noted here that in case of prevent health check-up maximum amount of INR 5,000 is allowed as a deduction, however, the same is included in the overall maximum deduction of INR 25,000.

3. Amount paid towards medical expenditure for self or any member of the familyof the assessee up to a maximum amount of INR 50,000.

4. Amount paid towards medical expenditure for parents of the assesseeup to a maximum amount of INR 50,000.

Providing the above provisions in tabular format for better understanding –

Persons covered Type of payment Maximum deductible amount
Assessee or spouse or dependent children Medical insurance premium + Preventive Health Check-up INR 25,000
Parents of the assessee Medical insurance premium + Preventive Health Check-up INR 25,000
Assessee or spouse or dependent children Medical expenditure INR 50,000
Parents of the assessee Medical expenditure INR 50,000

Deduction under section 80D available to a Hindu Undivided Family  –

Following deduction is available to a Hindu Undivided Family (HUF) –

1. Amount paid towards medical insurance premium of any member of the Hindu Undivided Family up to a maximum amount of INR 25,000.

2. Amount paid towards the medical expenditure of any member of the Hindu Undivided Family up to a maximum amount of INR 50,000.

Treatment of deduction under section 80D in case of senior citizen –

The treatment of available deduction under section 80D is different in case of a senior citizen. The treatment of deduction in case of a senior citizen is explained in the below-mentioned table –

Category of assessee Senior citizen Type of payment Maximum deductible amount
Individual Either assessee or his family or both is a senior citizen Medical insurance premium + Preventive Health Check-up INR 50,000
Individual Either of the parents of the assessee is a senior citizen Medical insurance premium + Preventive Health Check-up INR 50,000
Hindu Undivided Family Any member of the Hindu undivided family is a senior citizen Medical insurance premium INR 50,000

It should be noted here that ‘senior citizen’ here means an individual resident in India who is of the age of 60 years or more at any time during the relevant previous year.

Treatment of insurance premium paid in lumpsum –

In order to give corrective deduction in case of the insurance premium which is paid on the lump-sum basis, sub-section (4A) has been inserted to section 80D. It should be noted that the newly inserted sub-section (4A) to section 80D is effective from 1st April 2019.

According to said sub-section, in case of a lump-sum payment of insurance premium, in a previous year to effect or to keep in force an insurance on the health of a specified person for more than a year, the deduction shall be allowed equal to the appropriate fraction of the amount for each of the relevant previous year.

Allowable mode of payment for claiming the deduction –

Amount paid towards preventive health check-up –

Any mode of payment, including cash, is allowed for claiming deduction towards amount paid in case of preventive health check-up.

Amount paid towards any other case –

In any other case, any mode of payment is allowable except cash payment. In other words, cash payment is not an allowable mode of payment.

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