Section 80 D of Income Tax Act (2023)

In recent years, the government has taken several measures to help our citizens to avail better medical facilities. One of the steps includes the introduction of section 80 D of Income Tax Act. 

In this act, the government provides tax exemptions for the expenses incurred in medical and Health Insurance and treatment for its citizens up to a certain limit. Earlier this limit was up to INR 30,000, but after COVID it has been increased to INR 50,000.

Using section 80 D, any individual/HUF can now opt for a better healthcare facility without paying a hefty amount for life insurance or medical insurance. However, there are guidelines that must be kept in mind for the better use of this section. 

Let’s understand the basics of section 80 D in this article below. 

What is Section 80 D of Income tax act?

Section 80 D of the income tax act exclusively talks about the deduction in respect of health insurance premiums. Any individual/HUF can claim a deduction on the premium paid for the medical insurance/ schemes under this section. 

Section 80 D can be used to claim tax deductions for the following in your family: self-dependent, spouse, and dependent kids. 

Another point to remember is that to pay the premium charges under section 80 D of income tax you must use a cheque. If you cash to pay the premium charges then you cannot use all the benefits of Section 80 D.

Now moving on let’s see what can be claimed under section 80 D in income tax.

The following can be claimed under section 80 D of the Income Tax Act:

The amount paid to pay the medical insurance premium can be claimed in tax benefits under the section if the mode of payment was not cash.

You can get benefits under section 80 D for the amount paid for the treatment of a senior citizen that is 60 years enabled in age along with their medical expenses inform of 

Preventive health checkups. For example, if you took your parents or elder family members for an annual order to help check up in a year, then that can be claimed under the section for tax benefits. 

Also, you can claim tax exemptions of up to INR 5000 for both you and your family members under section 80 D. You can pay this amount in cash as well. 

How much medical expenses can I claim under 80 D?

Section 80 D of the Income Tax Act provides deduction limits on the medical expenditure for self, spouse, parents, kids and senior citizens separately. 

Let’s look at them one by one.

For Individual: 

• A person can claim up to INR 25000 for the expense done on the insurance of self, spouse, and dependent children.

• A person can claim up to rupees 25000 of expense done on the insurance of parents of age less than 60 years. However, if the parents’ age is more than 60 years, then a person can clean up to rupees 50000 under section 80 D.

• If the age of both the person/ taxpayer and parent is more than 60 years then a total of Rupees 1 lakh can be claimed under the section.

• If there is no medical insurance coverage then the medical expense done on parents, kids, and spouses can be claimed under the section of up to 50000 rupees.

For HUF:

• HUF can claim a deduction of up to INR 25000 if its member’s age is less than 60 years and an amount of INR 50000 if its member’s ages are more than 60 years.

Deductions under section 80 D for preventive health checkups

An individual can claim a deduction of up to rupees 5000 for any expense made towards the preventive health checkup in a year. 

This deduction on tax is applicable for self, spouse, dependent children, and parents. The amount is included in the overall limit of the yearly deduction under section 80 D, which can be either 25000 or 50000 depending upon the age. 

Deduction Limit Under Section 80 D

The table below gives a general idea of the three main scenarios to claim a deduction under section 80 D of the Income Tax Act.

Can 80 D claim without bills?

Any citizen or part of a Hindu undivided family (HUF) can get a deduction under section 80 D without showing any kind of bill for the medical expenses made in treatment. 

This deduction is not applicable to NRIs.

However, a person is required to submit the medical proof in order to claim a deduction under section 80 D for a disabled person.

The following documents are needed to claim a deduction in case the dependent is with a disability:

• The taxpayer should provide a medical certificate as proof of the disability of the dependent.
• The taxpayer should provide a self-declaration certificate explaining the cost incurred in the medical treatment of the disabled dependent.
• The taxpayer should submit form 10-IA if the dependent is suffering from more than one disability.
• The taxpayer should provide an insurance premium receipt for the payment made towards the insurance policies taken for the dependent disabled person. 

How is 80 D calculated?

As you know any individual can claim tax deduction under section 80 D on their taxable income. The deduction under section 80 D can be calculated using this tool on the income tax website.

Steps to calculate the deduction under section 80 D are as follows:

Go to this link https://incometaxindia.gov.in/Pages/tools/deduction-under-section-80 D.aspx. A tool will appear with the title deduction under section 80 D, as amended up to the finance act 2022.

The following fields will appear in this form: 

• Assessment year, 
• status ( Assessee, Spouse, dependent children, and assesses parents), 
• Payment for medical insurance premiums or contribution to CGHS, 
• Payment of medical insurance premiums for Resident senior citizens, 
• Payment made for a preventive health checkup, 
• Medical expenditure on the health of resident very senior citizens for whom no amount is paid to affect or keep in force health.
• Deduction under section 80 D.

Enter the information in all of the fields except the deduction under section 80 D.

As soon as all of the information is filled in the rest of the fields the total amount to be claimed under the section will be displayed in the last field of deduction under section 80 D. 

FAQ- Section 80 D of Income Tax Act

1. Is 80 D included in 1.5 lakh?

No, the maximum deduction limit under section 80 D is of 1 lakh in cases where both the taxpayer and dependent parents are above the age of 60 years. 

2. What can be claimed under 80 D?

Section 80-D can give you tax relief for medical expenses like hospital bills, medical checkups, payment of insurance premiums, and medical treatments. 

Conclusion

From the above read, it must be clear by now that Section 80 D of Income tax act is to provide relief in the tax for the incurred medical expenses in form of premium charges/checkups/treatment, etc. An individual/HUF can claim a relief of a maximum of 1 lakh and a minimum of INR 25,000 under this section. This deduction can be availed without any document. However, if the dependent is disabled then proof of disability and for 10-IA is needed. All the payments must be done in non-cash mode to get the benefits of this section. Only up to INR 5,000 can be paid in cash.

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