Health insurance Plans are important for us which would help to stave upper forfeit hospitalization expenses. We can requirement premium paid for health insurance plan under section 80D. It could for the premiums paid for self or family or for parents, we can require such value from income tax deductions. What is Section 80D all about? How to requirement Health Insurance under Section 80D of the IT Act from Towage Year 2018-19 onwards? Can we requirement 80D without financial year is closed? This vendible would provide the well-constructed guide on Section 80D deductions.
The Central Board of uncontrived taxes (CBDT) has un-liable the deduction towards the premium paid for health insurance U/s 80D of the Income Tax Act, 1961. There are a few important things to note regarding this matter
1) An individual or HUF can requirement the deduction u/s 80D for the premium paid for Health Insurance.
2) Payment should be made out of income chargeable to tax.
3) Payment should be made by any mode other than cash.
An individual can take the deduction of health insurance, preventive Health check-up and medical expenditure fees paid for the pursuit of persons: –
1) Self
2) Spouse
3) Dependent Children
4) Own parents (not spouse parents).
How to requirement Health Insurance under Section 80D of the IT Act from A.Y. 2018-19?
The pursuit tax regime would guide you well-nigh the deductions on payment of health insurance premium
If any taxpayer pays the health premium of himself and his family, he can requirement the deduction in the pursuit manner:
Note: – in a specimen of parents, the parents of the spouse are not included)
If an individual pays the premium of health insurance of his parents, then withal with his family, he is entitled to spare deduction u/s 80D as described in the whilom table.
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Deduction on preventive healthcare checkups. Along with the same limit of Rs. 25,000 (or Rs. 30,000 in a specimen of senior citizens), you can moreover requirement expenses incurred for preventive health checkups up to Rs 5,000 every financial year. This deduction can be personal only for senior citizens. This payment can be made through cash.
One important point to note is that the payment for medical insurance premium should be made through online banking, cheque, debit card, credit vellum or a draft. The tax deduction is not un-liable for payment of maximum towards the premium.
Eligibility for normal individuals and Senior Citizens
Under this Section, a taxpayer gets a maximum deduction of Rs. 25,000/- for Health insurance and preventive health check-up paid for himself, spouse and dependent children.
If the taxpayer or any family member is of 60 years or more, then the same deduction will be increased to Rs.30,000/-
If the parents are 80 years or more, then the payment towards the medical expenses is moreover misogynist as the deduction under this section.
What was eligible in Section 80D till the financial year 2016-17 (the Assessment year 2017-18)?
The exemptions u/s 80D for the financial year ending 31/3/2017 is the same as it was in previous years. There is no transpiration in the value of deduction in this towage year (i.e. 2018-19) as compared to the towage year 2017-18. It is worth mentioning here that the Finance Minister has introduced few changes in this upkeep but they are workable from next towage year i.e. 2019-20.
Can we requirement 80D without financial year is closed?
If an individual has filed his/ her IT return on time on or surpassing the due stage as prescribed u/s 139 and at the time of filing of return, he/she has by mistake forgot to require the deduction u/s 80D towards the premium paid for health insurance, then he/she can file the revised return and can requirement the deduction U/s 80D.
What are the exclusions in section 80D?
Here are the exclusions.
1) In order to get tax benefits u/s 80D, only the taxpayer must pay the health insurance premiums and not any third party. The payment of premium should not be made through maximum except for the preventive health checkups.
2) The taxpayers are not liable to receive any tax benefits on the Service tax and Cess charges levied on the premium paid.
3) Group health Insurance policies are not liable to vamp any tax benefits u/s 80D. However, if a taxpayer chooses to make the uneaten premium payments to enhance the group cover, he can require a deduction for that uneaten amount.
4) Such health insurance premiums should be paid surpassing 31st March to the requirement for that financial year.
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