Section 80D: Income Tax Deduction for A.Y. 2019-20 & F.Y 2018-19 . Section 80D deduction Relevant for Assessment Year 2019-20/Financial Year 2018-19 as proposed by Finance Bill 2018 | Relevant for Assessment Year 2019-20/Financial Year 2018-19 are given below.
Having a health insurance policy does not only help cover your medical expenses, but it also gives you relief from tax liabilities. Section 80D of the Income Tax Act 1961 allows taxpayers to claim deductions for health insurance premiums paid for insuring self, spouse, dependent children, and parents. The maximum tax deduction that can be claimed under this section is Rs. 25,000. If any of the persons specified is a senior citizen, the maximum deduction amount is Rs. 50,000.
Section 80D: Income Tax Deduction for F.Y 2018-19/A.Y. 2019-20
Insured
|
Exemption List
|
Self & family
|
25,000
|
Self & family + Parents
|
25,000 + 25,000 = 50,000
|
Self & family + Parents (senior citizens)
|
25,000 + 50,000 = 75,000
|
Self (senior citizen) & family + Parents (senior citizens)
|
50,000 + 50,000 = 1,00,000
|
Click to Download & Prepare at time 100 employees Automated Income tax Master of Form 16 Part B for F.Y.2018-19 [ This Excel Utility Can Prepare at a time 100 Employees Form 16 Part B for the Financial Year 2018-19 & Ass Year 2019-20 ]
The provisions under section 80D are:
- Any mode of payment (debit cards, credit cards, electronic transfer, etc.) is acceptable for claiming deduction under Section 80D, except premium amount remitted by cash. Payment for a preventive health check-up, however, can be made in cash.
- Deductions can only be claimed for premiums paid for dependent children. Premium paid for earning kids is excluded from this section.
- You can claim an additional deduction of Rs. 5,000 for expenses related to health check-ups. This limit includes health check-up expense of all the dependents in the family.
Section 80D: Income Tax Deduction for F.Y 2017-18 / A.Y 2018-19
Insured
|
Exemption List
|
Self & family
|
25,000 |
Self & family + Parents
|
25,000 + 25,000 = 50,000 |
Self & family + Parents (senior citizens)
|
25,000 + 30,000 = 55,000 |
Self (senior citizen) & family + Parents (senior citizens)
|
30,000 + 30,000 = 60,000 |
Often times, people confuse Section 80C with Section 80D. Under Section 80C, deductions can be claimed up to Rs. 1,50,000, whereas under Section 80D, deductions can be claimed up to Rs. 1,00,000. Tax benefits can be availed on life insurance premium payment, tax saving fixed deposits, PPF, ELSS, etc. under Section 80C of the Income Tax Act. Section 80D governs the deductions on premium for health insurance policy.
