Deduction under section 80D of Income Tax Act

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 –

• An Individual; and
• A Hindu Undivided Family (HUF).

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 1^st 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.

Don’t forget to check: section 80d of income tax act.

Other Suggested Articles on Chapter VIA Deductions

1.	Deduction under section 80C of Income Tax Act
2.	Deduction under section 80CCC of Income Tax Act
3.	Deduction under section 80CCD of Income Tax Act
4.	Deduction under section 80D of Income Tax Act
5.	Deduction under section 80DD of Income Tax Act
6.	Deduction under section 80DDB of Income Tax Act
7.	Deduction under section 80E of Income Tax Act
8.	Deduction under section 80EEA of Income Tax Act
9.	Deduction under section 80EEB of Income Tax Act
10.	Deduction under section 80G of Income Tax Act
11.	Deduction under section 80GG of Income Tax Act
12.	Deduction under section 80GGA of Income Tax Act
13.	Deduction under section 80GGC of Income Tax Act
14.	Deduction under section 80QQB of Income Tax Act
15.	Deduction under section 80RRB of Income Tax Act
16.	Deduction under section 80TTA of Income Tax Act
17.	Deduction under section 80TTB of Income Tax Act
18.	Deduction under section 80U of Income Tax Act