The next time you go for a blood test, make sure you keep your receipt safe, even after you’ve collected your test report. Why? You can use it to get a tax benefit. Yes, you heard it right. In this week’s bulletin, we shall look at one of the most popular section of the Income tax act, Sec. 80D.

Sec. 80D encourages taxpayers to avail tax benefits on health insurance premiums paid towards Medical Insurance policy for self, spouse, children, and parents. Notably, it does not matter whether the children or parents are dependent on you or not.

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. The benefits that can be availed u/s 80D can be tabulated as follows

Here are some important points to be considered while claiming benefit under section 80D:

• 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.

• The quantum of expenses on health check-up of your family, parents and yourself is up to Rs. 5,000 for self, family and parents put together. However, this deduction of Rs. 5,000 is not in addition to the maximum deduction stated above but is included in the above deduction.

• If any member of your family is senior citizen (i.e. 60 years or above in age) but is not covered by any health insurance, you can still get a tax deduction of upto Rs. 50,000 under the same section.

You will be required to submit your premium receipt along with the bills for preventive health care, if any, for claiming the tax benefit under this section.

If you have any further questions on 80D, please do not hesitate to reach out to us on pavan@bclindia.in. We would be glad to be of your help.