Use Section 80D to Avail Tax Deduction on Health Check-up Expenses

You can claim tax deductions by investing in various tax-saving instruments. Nevertheless, you may not be aware of the tax deductions you can claim on the health care expenses you have incurred during the fiscal year.

You can claim a tax deduction on health insurance premiums under Section 80D. Individuals and Hindu Undivided Families (HUFs) qualify for claiming this tax deduction. The deduction applies to a policy purchased for a spouse and dependent children/parents. The premium amount paid concerning critical illness and top-up health plans also qualify. For non-senior and senior citizens, the maximum tax deduction permitted in a fiscal year is Rs 25,000 and Rs 50,000, respectively.

Other lesser-known tax deductions you can claim:

• Preventive health check-up

You can claim a maximum tax deduction worth Rs 5,000 on expenses related to preventative health check ups. This comes under the overall limit of Rs 25,000 under Section 80D, which comprises senior citizens’ medical insurance premiums and health expenses. Based on your tax slab, you can save up to Rs 1,500 through preventive health check-ups.

Irrespective of whether you have bought a health insurance policy or not, you can claim this tax deduction. You need not pay via credit card or cheque for claiming this deduction. You can claim this benefit even when the payment is made in cash. Nevertheless, you will need to keep your medical bills and prescriptions ready if the IT department asks for proof.

• Section 80DDB deduction

Under Section 80DDB, a tax deduction is available concerning treatment related to specified ailments. For individuals below 60 years, the limit is Rs 40,000; for senior citizens, it is Rs 1 lakh. Only specified illnesses mentioned in Rule 11DD of the I-T Act qualify for this tax deduction. These include malignant cancers, neurological diseases, dementia, haematological disorders, thalassaemia, Parkinson’s disease, and others.

You can claim tax deduction under Section 80DDB concerning the treatment of a dependant or for yourself if you suffer from one of the specified ailments. A certificate mentioning that a person is suffering from such a disease will be required. The certificate will require details such as name, ailment, age, and details of the specialist treating the patient.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in